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November 9, 2011 in City
Dow falls on European jitters
NEW YORK (AP) — The Dow Jones industrial average is closing with a loss of 389 points after Italy’s borrowing costs soared and talks collapsed in Greece on forming a new government.
Interest rates on Italian government debt spiked, evidence that investors are losing faith in the country’s ability to repay its debt.
In Greece, power-sharing talks fell apart between the country’s two main political parties. That raised doubts about whether a default can be avoided.
The Dow sank 3.2 percent to close at 11,781, the biggest drop since Sept. 22.
The S&P 500 lost 47 points, or 3.7 percent, to 1,229.
The Nasdaq slid 106, or 3.9 percent, to 2,622.
Nine stocks fell for every one that rose on the New York Stock Exchange. Trading volume was high at 4.6 billion shares.
© Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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IHike4Fun on November 09 at 2:22 p.m.
Italy is the 3rd largest economy in Europe I think. Their debt crisis is 10x worse than Greece’s because of their size. Gee, why do socialistic countries have such high debt? Maybe socialism isn’t a good thing.
force_vector on November 09 at 2:52 p.m.
Maybe our inflated, and overly volatile, markets aren’t a good thing either. This ridiculous cycle of massive upswings followed by massive downswings is really killing the system. Oil speculation has made some rich in the same way that market speculation has made some rich. This whole notion that somehow none of the market analysts know the full extent of debt troubles in Europe, and are forced to respond by selling off with each new nugget of speculation is nothing more than a disguised attempt to rip everyone off who doesn’t have access to the “sell code”. I mean, how many times can we allow these thieves to artificially inflate the market, entice little guy buyers, then rapidly sell off, and in effect steal, all the money from the “little guy”. You think your 401k administrator isn’t in on this? We need a balanced and regulated market just as bad as Europe needs to figure out to whom they will sell out to finance their debt.
johnclarke on November 09 at 3:26 p.m.
Fair point Mr Vector. Momentum trading is a huge part of the problem, as far as I’m concerned they need to shut it down.
JBlim on November 09 at 5:38 p.m.
Ihke says “Gee, why do socialistic countries have such high debt? Maybe socialism isn’t a good thing.”
Yeah, except when they don’t have high debt, like Sweden and Norway.
force_vector on November 09 at 7:21 p.m.
JBLim - It’s fairly easy to not have high debt when you aren’t charged with the defense of all of your allies. It’s also easy to not have high debt when you don’t finance global campaigns of “freedom” through blowing up buildings, and then rebuilding them to include wifi. The point is, both systems only work to a point. Small nations may be able to get away with socialism or a socialist democracy provided they can rely on others for their defense. We can get away with our democratic capitalist system provided we don’t use our capital to prop up and attempt to create a.) the illusion of freedom around the world through war, b.) the illusion of security through debt for those countries who avoid debt by not providing for their own security, and c.) the illusion of private success by hiding failure through public money.
JBlim on November 10 at 5:58 a.m.
force_v says: “It’s fairly easy to not have high debt when you aren’t charged with the defense of all of your allies.”
China provides for their own defense. How does that fit into the theory? I know: “yeah, but … blah blah blah . .”