Skip to comments.U.S. Stocks Hit As Spanish Yields Top 7%
Posted on 06/18/2012 7:09:33 AM PDT by blam
U.S. Stocks Hit As Spanish Yields Top 7%
June 18, 2012
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) U.S. stocks retreated Monday as any cheer from Greek-election results was overcome by concern over rising government bond yields in Spain.
Leaders of the world's largest economies are gathering in Mexico for the latest G-20 meeting. WSJ's Simon Nixon expects little from them unless they consider a new world order that can tackle the financial crisis. Photo: Getty Images The market has moved beyond Greece to Spain, which has both a government debt issue and a banking loan problem that is crippling its efforts to tap the capital markets at a reasonable rate, Kevin Giddis, head of fixed-income capital markets at Raymond James Morgan Keegan, wrote in emailed research.
Spains 10-year Treasury note rose 31 basis points to 7.18% /quotes/zigman/4869131/delayed ES:10YR_ESP +3.88% , topping the 7% level considered unsustainable for that governments borrowing costs.
The Dow Jones Industrial Average /quotes/zigman/627449 DJIA -0.19% fell 44.12 points to 12,723.05.
The S&P 500 Index /quotes/zigman/3870025 SPX -0.10% declined 4.07 points to 1,338.77, with energy falling hardest and telecommunications faring best among its 10 sectors.
The Nasdaq Composite /quotes/zigman/123127 COMP +0.23% was off 2.69 points to 2,870.11.
Decliners outdid advancers by a 2-to-1 ratio on the New York Stock Exchange, where 70 million shares traded as of 9:50 a.m. Eastern.
(Excerpt) Read more at marketwatch.com ...
Investors are coming to realize that financial gimmickry cannot repair the harm that three generations of deficit spending has done. The capital has been squandered and the bankruptcy is real and cruel. There are no easy Chapter this or that solutions. The result is misery and poverty.The bailouts, further borrowing, “quantitative easings” merely underwrite more non productive consumption and only squander more capital.The dirty secret is that the German economy is weakening as they waste capital on these bailouts to ungrateful people. Ultimately the situation is made worse. Things will get ugly.
With the bond rates in the Eurotrash PIIGs increasing.
We should be very wary of any mutual fund, etf, or other flim/flam artists/con men offering a ‘safe’ haven investment with a guranteed annual interest over 6%.
The PIIGs will be giving big bonuses to brokers, aka Con Artists selling their shaky bonds on their own or in a mystery fund package.
One can see left wing mutual fund companies bundling Freddy and Fanny bs with PIIGs Euro trash bonds and selling them as high dividend “safe” investments.
“Forget The Election Results - Greece Is Still Doomed And So Is The Rest Of Europe”
As usual, we are on the same page when it comes to left wing bs re financial activities and their beloved green stuff:
Below is a reply I posted re the realities of the recent Greek election:
“When the drunken soccer party Greeks sober up, there will probably be serious riots in the streets when the new party tries to bring reality to the Greeks.
Two things happened to help the win in the election.
1. Greece beats Russia 1-0 to earn quarterfinal spot.
2. So the entitled party soccer goons across the Greece party until the next morning and beyond.
In this election, they had to go to where they were born to vote. The hungover Greek entitled party boys/girls apparently didnt want to drive to vote.
When the new government tries to get these entitled bozos to give up their entitlements, Greece will look like Watts did decades ago.
Then, the new government will ask Germany, the UK and Uncle Sam to support their entitled life style.
We can kiss the Euro Trash nations good bye as their sense of entitlement increases and their growing population of Islamofacists grows every day.”