Wall Street plunges as European debt plight worsens

[TomClash]

Source: Reuters

(Reuters) - Stocks tumbled 3 percent on Wednesday in the market's worst day since mid-August as a spike in Italian bond yields signaled the European debt crisis had worsened.

All 10 S&P sectors were down, but S&P financials were the hardest hit on worries about European exposure, dropping 5.4 percent.

U.S. stock markets have grown more chaotic in response to rising volatility in European debt markets, and investors have trouble keeping up with a steady stream of headlines and pricing in how the crisis might play out.

. . .

The spread of the crisis to Italy has lifted it to a new level. European Union sources said German and French officials were discussing drastic plans, including an overhaul that would possibly create a smaller euro zone.

Italy's bond yields shot up to 7.502 percent, a new high since the euro was introduced in 1999. Investors were forced to sell Italian bonds after a European clearing house increased the collateral needed to borrow against that debt.

Read more: http://www.reuters.com/article/2011/11/09/us-markets-stocks-idUSTRE7A61KA20111109

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Gains for the month - wiped out.

[dmallind]

1. Wil you post the opposite when we get the next equivalent increase?

Such emotion-driven day to day swings say nothing meaningful in either direction.

[Vincardog]

2. The best thing that can happen is for the international fraud known as our monetary system to

collapse. Then we can begin building on based on reality instead of voodoo economics

[RKP5637]

3. Yeah, I've heard that said before and more and more I'm starting to agree. I had

hoped adjustments could be accomplished and reasonable action taken, but the greed, fraud and corruption runs too deep.

Voodoo economics has doomed our financial system, I thought that a long time ago when it started, it made no sense to me.

The only time trickle down economics works is when someone / some group is getting pissed on, and that's what most of us have been getting for about 30 years IMO.

[Vincardog]

4. You are correct. The greed has gotten too deep a hold on every phase of our society. Religious (look

at the Prosperity Mega Churches)
Political (look at the corrupt SCOTUS and Elected Leadership in both parties)
And Economical (Our biggest industry being Finance which only creates a "profit" by destroying real productive businesses.)
I do not see any way we can tinker around the edges with elections controlled by the very forces we need to overcome and expect any real result.

[Rebubula]

5. I am sure...

...that the lower classes (read: most of us) will suffer like hell if this little pipe dream of yours happens. This is like people wishing for $10-15 gallons of gas to force a change in energy and resource policies. The majority of people will be in a living hell while those with money and power will ride to home in the Hot Lanes.

The rich will just retire to their country estates to ride it out. Power and possessions are just as much currency as the dollar.


So NO...that is NOT the best thing that can happen.

[Vincardog]

6. So we are so much better off with the rich privatizing the billions in profits but socializing the

Trillions in losses? How does that work for you?

[Turbineguy]

7. There isn't a whole lot of respect

around here for people who have worked for years and put something away for the future. That they should get flushed down the toilet seems to be a good thing.

[Hotler]

9. Nature of the Free Markets. It's all ok as long as you are making money but, ...

as soon as the Free Markets turns sour and turns around and bites you in the ass well than it's help me, help me. Play the markets at your own risk. Millions are suffering around the world because of the crooks here in this country. (Wall St.) The Wall St. banks made up and sold junk and bet against it and lost and instead of being made to eat their losses we the little people that had savings, investments, pensions, jobs and our homes bailed them out. Nothing is going to start to change until tens of thousands take to the streets. That will not happen until more people feel the pain. The "I have mine. Fuck everybody else." crowd has yet to feel the pain.

[Nihil]

11. Well said. (n/t)

:toast:

[SoapBox]

8. Funny how this works...

The market inches, SLOWLY, up and as soon as it makes gains toward/at 12,000 (DJIA)...tank!

I simply do not trust the "markets" any longer...Yes, conspiracy theory and all, that it
is manipulated...call me crazy!

What a fools game.

[dmallind]

10. Easy choice then

Put standing orders in to buy index funds at 11000 and sell at 12000.

[DCBob]

12. funny what a difference a day makes..

LONDON (AP) -- The prospect of new governments in Greece and Italy helped support market sentiment Friday, at the end of a hugely-volatile week when investors fretted over the future of the euro currency and the outlook for the global economy.

With Greece having appointed Lucas Papademos as the prime minister of a coalition government, and Italy expected to appoint a new government headed by respected economist Mario Monti, both countries have won some breathing space to get their economies into shape.

"Equity markets are seemingly looking a little more kindly on Europe as we head into the weekend break with news of Berlusconi's accelerated departure, combined with progress from Greece over the formation of a coalition government, helping cheer stocks on a global basis," said Peter Stanhope, institutional trader at IG Index.

http://finance.yahoo.com/news/market-fears-over-italy-greece-103822990.html

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Of course this could all go south once again should things not work out as planned.