You know, I once previously believed that the United States was sinking while the rest of the world watched. It seems that many countries are now slipping into some sort of financial crisis that we here have been experiencing. I would like to share the following article with everyone and hope that someone realizes that something needs to change and bipartisanship is absolutely necessary in this day and age. Sooner or later I won’t even be able to contact East Side Lenders for a loan, because the economy is too weak to support such small loan increments over time. We’ll just have to wait and see.
Just before the opening bell, the European Central Bank announced that executive board member Jürgen Stark was stepping down. Analysts say Stark is leaving amid disagreements over the ECB’s bond-buying program.
Selling gained momentum in the afternoon as investors also grew increasingly concerned about a possible Greek default.
The Dow Jones industrial average (INDU) tumbled 304 points, or 2.7%. At its lowest points, the blue chip index was down 359 points.
The S&P 500 (SPX) slumped 32 points, or 2.7%, and the Nasdaq composite (COMP) lost 71 points, or 61 points, or 2.4%.
The day’s steep losses pushed all three indexes to end in the red for the week. The Dow declined 2.2%, the S&P fell 1.7% and the Nasdaq slipped 0.5%.
“There’s a lot of nervousness that Greece could default this weekend, and Greek bonds yields keep rising,” said Joe Saluzzi, co-head of equity trading at Themis Trading.
Reports said Germany is preparing to shore up its banks to protect them against a Greek default. If Greece’s bonds become worthless, that can trigger capital-requirement problems, and a lot of major banks could go under, Saluzzi said.
“The financial contagion could be pretty bad, so investors are getting out now and waiting to see how all of this will shake out,” he added.
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