New York Times (May 7)
At 2:42 yesterday, the Dow Jones Industrial Average (DJIA) went into freefall. By 2:47, the DJIA recorded its greatest ever intraday point drop. Individual stocks experienced even greater volatility. Procter & Gamble fell 37%. Accenture dropped from $40 to $0.01. The New York Times says the panic was the result of “one part nervous traders, one part Greek crisis and one part trader error.” After falling more than 1,000 points, the DJIA largely recovered, closing down 347.80 points. The SEC and major stock exchanges have launched an investigation into the “unusual trading activity.”
At 2:42 yesterday, the Dow Jones Industrial Average (DJIA) went into freefall. By 2:47, the DJIA recorded its greatest ever intraday point drop. Individual stocks experienced even greater volatility. Procter & Gamble fell 37%. Accenture dropped from $40 to $0.01. The New York Times says the panic was the result of “one part nervous traders, one part Greek crisis and one part trader error.” After falling more than 1,000 points, the DJIA largely recovered, closing down 347.80 points. The SEC and major stock exchanges have launched an investigation into the “unusual trading activity.”
Tags: Dow Jones, Greek crisis, Panic trading, SEC
Wall Street Journal (May 5)
Like the market, the Wall Street Journal is calling the €110 billion Greek rescue package “a flop.” Contagion has continued to spread with the euro sinking in value and European stock markets down nearly 3%. At the heart of the matter, however, lies a simple explanation: “Greece is well and truly bankrupt.” This is no mere crisis of market confidence or psychology. Greece will not be able to repay all of its debts on time.
Like the market, the Wall Street Journal is calling the €110 billion Greek rescue package “a flop.” Contagion has continued to spread with the euro sinking in value and European stock markets down nearly 3%. At the heart of the matter, however, lies a simple explanation: “Greece is well and truly bankrupt.” This is no mere crisis of market confidence or psychology. Greece will not be able to repay all of its debts on time.
Tags: Contagion, Europe, Greek crisis
The Independent (April 28)
Europe’s equivalent of the “sub-prime” is fast reaching a point of no return. Greece and Portugal both received new credit rating downgrades. The Independent urges the European Union (EU) and the International Monetary Fund (IMF) to “redouble their efforts” because “every day that a deal for Greece is not forthcoming is another day in which the eurozone’s crisis will spiral further out of control.” Each day increases the risk that more European countries will become “basket cases.”
Europe’s equivalent of the “sub-prime” is fast reaching a point of no return. Greece and Portugal both received new credit rating downgrades. The Independent urges the European Union (EU) and the International Monetary Fund (IMF) to “redouble their efforts” because “every day that a deal for Greece is not forthcoming is another day in which the eurozone’s crisis will spiral further out of control.” Each day increases the risk that more European countries will become “basket cases.”
Tags: Credit rating, EU, Europe, Greek crisis, IMF
