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Wall St set to slide after Greek referendum call
Reuters via Fox Business ^ | November 01, 2011 | Rodrigo Campos

Posted on 11/01/2011 7:27:07 AM PDT by Pan_Yan

On Monday, U.S. stocks racked up their best month in 20 years in October.

Greek Premier George Papandreou said he will put Greece's bailout deal through a referendum, potentially undoing a long-awaited agreement struck just last week and sending European stocks down 4.4 percent. The region's bank shares fell 7.9 percent to $16.25.

Greek opposition parties said the referendum was putting Greece's European Union membership at risk and instead called for a snap election.

U.S. bank shares were expected to follow European lenders lower. The Financial Select Sector SPDR fell 4 percent with Bank of America down 5.9 percent and Morgan Stanley down about 7 percent.

"The market did not see this Greek referendum coming, which is potentially a killer and could knock the wheels off the bus of the whole (European rescue) plan," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"If the Greek people were to vote for this it would give it a lot more weight," he said. "It's just the uncertainty between now and then what puts the rally in question."

(Excerpt) Read more at foxbusiness.com ...


TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: arabic; corruption; euro; grease; greece; iberian; piigs; redistribution; socialism; southern; wallstreet
So the Greeks vote not to cut their spending, the whole deal falls through, Germany walks away from the bailouts, the EU Stabilization Fund dries up, PIIGS default and on the new season of Pawn Stars China buys half of Europe for a truckload of paper currency and a bucket of white rice.

Is that about right?

1 posted on 11/01/2011 7:27:09 AM PDT by Pan_Yan
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To: Pan_Yan
Dow Jones 11,721.04 -233.97 (-1.96%)

S&P 500 1,225.52 -27.78 (-2.22%)

Nasdaq 2,624.52 -59.89 (-2.22%)

2 posted on 11/01/2011 7:29:40 AM PDT by Pan_Yan
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To: Pan_Yan

Beware of Greeks bearing gifts.


3 posted on 11/01/2011 7:31:33 AM PDT by PBRSTREETGANG
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To: Pan_Yan

I have BBT stock. It is on the rise this morning.........


4 posted on 11/01/2011 7:33:51 AM PDT by Coldwater Creek (He who dwells in the shelter of the Most High will rest in the shadow of the Almighty Psalm 91:)
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To: PBRSTREETGANG

Beware of Greeks bearing gRift..........


5 posted on 11/01/2011 7:40:22 AM PDT by Red Badger (Obama's number one economics advisor must be a Magic Eight Ball.................)
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To: Pan_Yan

No doubt a referendum is the right thing to do (assuming, of course, every dollar in debt was subject to a referendum as it accumulated). But why showboat about it right now? Surely everyone sitting around that great-big godamm oak table in Bruxels or wherever knew Greece would have to put it to a referendum, if for no other reason than to make a pretense at keeping protocol.


6 posted on 11/01/2011 7:41:46 AM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: Pan_Yan
So the Greeks vote not to cut their spending,

Not sure that's the whole issue. Some portions of the bailout loan are at 30 friggin' percent. They'll NEVER get it paid off. They'd be smarter to forgo the loans, default on everything, and try going cold turkey (govt. is cash-only for the forseeable future).
7 posted on 11/01/2011 7:43:46 AM PDT by BikerJoe
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To: Pan_Yan

The US market is still pretty high. I don’t see any good buys on my watch lists.

I got some reasonable deals a couple of months back, INTC under 20, MRK at 30.5.


8 posted on 11/01/2011 7:44:49 AM PDT by proxy_user
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To: Pan_Yan
Buncha damn democrats over there. They won't go through with the necessary spending cuts because it might cost them political power. They'd rather let the whole damn thing crash. They decide to wash their hands of it by putting it up for popular vote (how do you think that will go? “hey guys, those checks were sending you, how’d you like to vote yourself a smaller check?”) of course their equivalent to our ignorant left will see to it that such an “outrage” never happens to the good people. When the shit hits the fan because their overspending scheme collapses, the cowardly politicians will just say, “what? This is what you voted for. Not our fault.” and the beat will go on. Any attempt to fix the problem with be met with demagoguery by the very bastards that caused the problem. The west might well be doomed. Useful idiots, indeed.
9 posted on 11/01/2011 7:45:45 AM PDT by youngidiot (Hear Hear!)
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To: Pan_Yan

Hanging our financial survival on the whims of Greek politicians. Are these guys brilliant or what?


10 posted on 11/01/2011 7:53:14 AM PDT by Buckeye McFrog
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To: Pan_Yan

I for one am getting sick and tired of the US markets jumping up and down like a trampoline depending upon the aroma of that day’s farts from Greece, aren’t you?


11 posted on 11/01/2011 7:57:31 AM PDT by Notary Sojac (I wish someone would tell me what "ditty wah ditty" means.)
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To: youngidiot

Look at it this way...the Germans and others get to work 5 years longer so the Greeks can get their retirement early...I’m sure the Germans et al will love this.


12 posted on 11/01/2011 8:01:09 AM PDT by BubbaJunebug
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To: Pan_Yan

I take it the “bucket of white rice” is strictly to pay for buying Greece?

If so, you’re right on the money.


13 posted on 11/01/2011 8:02:50 AM PDT by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
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To: Pan_Yan

The collapse of the Euro and bankruptcy is going to stare Greek voters in the face.

They can reject the bailout deal - that’s their prerogative but if they default on Greece’s debt its going to be very tough for Greece to recover - even if it reinstates the drachma.

If investors have to write off their losses, who in their right mind wants to invest in Athens again?

Greek voters have a big decision to make.


14 posted on 11/01/2011 8:03:17 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Pan_Yan

And...

Wall St extends losses after ISM data
Stocks extended losses on Tuesday after data showed the pace of growth in U.S. manufacturing unexpectedly slowed in October.

http://finance.yahoo.com/news/Wall-St-cuts-losses-after-EU-rb-3043929755.html?x=0&.v=8


15 posted on 11/01/2011 8:04:54 AM PDT by John W (Natural-born US citizen since 1955)
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To: BubbaJunebug
Look at it this way...the Germans and others get to work 5 years longer so the Greeks can get their retirement early...I’m sure the Germans et al will love this.

Maybe the German people should be the ones demanding a referendum on bailing out the Greeks. Nein! Nein! Nein!

Time to dust off the old Operation Marita & Mercury plans and run them by the German banks' repossession departments.

16 posted on 11/01/2011 8:09:37 AM PDT by KarlInOhio (Herman Cain: possibly the escapee most dangerous to the Democrats since Frederick Douglass.)
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To: BikerJoe

My little tongue in cheeck rant was strictly for self amusement. My ability to predict economic trends is dubious at best.


17 posted on 11/01/2011 8:30:51 AM PDT by Pan_Yan
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To: the invisib1e hand
But why showboat about it right now?

To get a better deal. Hush money if you will.

18 posted on 11/01/2011 9:14:48 AM PDT by BfloGuy (Even the opponents of Socialism are dominated by socialist ideas.)
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To: Notary Sojac

These are actual headlines from recent financial news (last 3 months), in chronological order from earliest to most recent:

Stocks Plummet on Greece Fears

Wall Street jumps on euro zone relief

Dow Sheds 200 Points As Greek Collapse Looms

Stocks up in relief rally over eurozone debt deal

Stocks set to drop on eurozone fears

Stocks rise as Greece nears debt solution

Stocks Hit Hard by Euro Zone Fears

Stocks rise as eurozone fears ease

Shares Tumble on Greece Fears

Market Snapshot: U.S. stocks surge on accord in Europe

Greek turmoil sends US and world markets lower


19 posted on 11/01/2011 9:16:29 AM PDT by Deo volente (God willing, America will survive this Obamination.)
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To: goldstategop
"If investors have to write off their losses, who in their right mind wants to invest in Athens again?"

Investors? We aren't talking about people investing in building Greek olive oil plants. We are talking about people who kept buying Greek government bonds long after it should have been obvious that the Greek government couldn't afford them, because they believed that government bonds would never be allowed to default. Those investors were enablers.

All these desperate deals are attempts to avoid government default at all costs. But if default happens it should teach everyone a valuable lesson. Don't ignore ability to pay when loaning money to governments. This would put a real damper on out of control government spending, not just in Greece.

20 posted on 11/01/2011 9:34:32 AM PDT by mlo
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To: Pan_Yan

The EU is going to break down.

The only question left is when the war will start.


21 posted on 11/01/2011 9:56:09 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: redgolum

“Don’t mention the war....I mentioned it once, but I think I got away with it all right.”


22 posted on 11/01/2011 9:58:39 AM PDT by dfwgator
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To: goldstategop
If investors have to write off their losses, who in their right mind wants to invest in Athens again?

After taking a 30-50% haircut, who in their right mind would invest in Athens again?

23 posted on 11/01/2011 12:26:12 PM PDT by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: Pan_Yan

Wow put it to a vote - what a thought!!


24 posted on 11/01/2011 4:38:49 PM PDT by ninonitti
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