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IPFS News Link • Economy - Economics USA

U.S., Europe debt fears hammer stocks

• Reuters

Fears about out-of-control government debt on both sides of the Atlantic swept across financial markets again Monday, knocking stocks sharply lower and pushing up prices of bonds deemed to be safe havens.

As fears about Italy and other debt-strapped euro zone countries persisted with Moody's warning about France's rating outlook and Spanish yields rising a day after the country voted in a new government, attention also turned to the United States, where a bipartisan "super" committee looks set to miss a deficit reduction deadline.

"Europe is not the only one with debt problems ... in the United States there's a political gridlock,"