Dow Sinks as Greek Crisis Hits Global Markets

Source: Los Angeles Times

Los Angeles Times | May 4, 2010 | 1:15 p.m.

Dow sinks as Greek crisis hits global markets

Stock markets worldwide were pummeled Tuesday by fear that the European Union's $146-billion bailout plan for Greece won't be enough to prevent a broadening government debt crisis from engulfing Spain, Portugal and other countries on the continent. A threat of a slowdown in China's red-hot economy also unnerved investors.

The Dow Jones industrials dropped 224 points, or 2%, while the Nasdaq composite index lost 3%. In Europe, key indexes tumbled 5.4% in Spain, 4.7% in Italy and 7.2% in Greece. Chinese stocks lost 1.2%.

The worries sent yields on European government bonds surging. By contrast, U.S. Treasury bonds rallied, pushing their yields down, as investors sought out perceived safe havens. A retreat by investors from European debt helped push the value of the euro against the dollar to a one-year low.

Read more: http://www.latimes.com/business/la-fi-markets-20100505,0,447039.story

are expecting already strapped workers to foot the bills for getting the country out of crisis. The workers are giving notice to the rich and the politicians that this will not be the case, not this time.

It will be interesting to see what happens there. My guess is that the pampered lives of the ultra rich in Greece are about to change.

Where you are for example do those working in the public sector get bonus's for actually turning up for work ? Do foresters get bonus's for the occasions they need to work outdoors ? It's bonus's like those which are being targeted in Greece.

it's almost as if unlimited expansion isn't sustainable. :shrug:

The strong euro was a problem for German exports.

In particular, this devalues the euro about 14% against the Yuan. Which is a good thing.

Wheeeee!

A lower Euro doesn't help us.

Germany may actually benefit from having less financially secure countries in the Eurozone because they keep the Euro down.

The Deutsche mark or a Euro based on the economies of pre-expansion core countries (Germany, France, Belgium, Holland) would be considerably higher.

Germany gets the benefit, and they may end up paying for it now.