Skip to comments.Wall St set to slide after Greek referendum call
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 ...
Is that about right?
S&P 500 1,225.52 -27.78 (-2.22%)
Nasdaq 2,624.52 -59.89 (-2.22%)
Beware of Greeks bearing gifts.
I have BBT stock. It is on the rise this morning.........
Beware of Greeks bearing gRift..........
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.
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.
Hanging our financial survival on the whims of Greek politicians. Are these guys brilliant or what?
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?
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.
I take it the “bucket of white rice” is strictly to pay for buying Greece?
If so, you’re right on the money.
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.
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.
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.
My little tongue in cheeck rant was strictly for self amusement. My ability to predict economic trends is dubious at best.
To get a better deal. Hush money if you will.
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
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.
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