The Other McCain

"One should either write ruthlessly what one believes to be the truth, or else shut up." — Arthur Koestler

Dow Loses 213 Points on Debt Crisis in Greece, Portugal; Rachel Maddow Trying to Figure Out How to Blame Sarah Palin

Posted on | April 27, 2010 | 7 Comments

Let the blame game begin!

A downgrade of Greece’s credit rating to “junk” status sent stocks to their worst one-day loss in more than two months . . .
The Dow snapped a six-day winning streak, plummeting 213.04 points, or 1.9%, to 10991.99, suffering its worst decline in both point and percentage terms since Feb. 4.
Tuesday’s selling was fueled primarily by Standard & Poor’s decision to cut Greece’s credit rating by three notches to “junk” status, saying the move was the result of the firm’s “updated assessment of the political, economic, and budgetary challenges that the Greek government faces in its efforts to put the public debt burden onto a sustained downward trajectory.”

Portugal’s bonds haven’t yet reached junk” status, but . . .

Standard & Poor’s . . . also cut Portugal’s rating two notches. S&P also kept a negative outlook on the two countries’ ratings — meaning more downgrades are possible in the near term. . . . Stocks plummeted 6% in Greece, 4.7% in Portugal, 4.2% in Spain and 2.7% in Germany. . . .
As for Portugal — also struggling under heavy debt and facing poor economic growth prospects — S&P lowered its rating to A-minus from A-plus, citing “amplified fiscal risks.” Portugal, which so far hasn’t requested help from the rest of Europe, “could struggle to stabilize its relatively high debt ratio” until 2013, S&P said. . . .
The yield on two-year Greek bonds rocketed to 15.35% from 13.16% on Monday and 6.1% two weeks ago, a sure sign that the market believes Greece ultimately will seek to restructure its debt by cutting interest or principal payments, or both.
S&P said that if Greece restructures its debt, current bond owners may recover just 30% to 50% of their principal amount. . . .

What caused the European debt crisis? Out-of-control deficit spending, mainly caused by government obligations for entitlement programs like health care. Does that sound kind of familiar?

While your 401(k) circles the toilet — and Democrats and MSNBC look around for fat-cat right-wing scapegoats — you can at least muster an ironic smile at this news from Wall Street today: Goldman Sachs stock went up today. Because they’ve got important friends, you see.

Category: Economics, Europe, Foreigners

Comments

7 Responses to “Dow Loses 213 Points on Debt Crisis in Greece, Portugal; Rachel Maddow Trying to Figure Out How to Blame Sarah Palin”

  1. Andrew Sullivan
    April 27th, 2010 @ 8:44 pm

    Clearly the Dow fell due to Sarah Palin. She is a manipulative little wench, isn’t she? I bet she bought short this week. Let’s investigate that (and also comb through her medical records while we are at it).

  2. Andrew Sullivan
    April 27th, 2010 @ 3:44 pm

    Clearly the Dow fell due to Sarah Palin. She is a manipulative little wench, isn’t she? I bet she bought short this week. Let’s investigate that (and also comb through her medical records while we are at it).

  3. Andrew Sullivan
    April 27th, 2010 @ 8:47 pm

    How long before T-bills are reduced to junk status. Clearly it is Bush’s fault. And Sarah Palin’s. And John McCain’s. And the Tea Parties for not being serious about cutting entitlements.

    That is why I love Barack Obama.

  4. Andrew Sullivan
    April 27th, 2010 @ 3:47 pm

    How long before T-bills are reduced to junk status. Clearly it is Bush’s fault. And Sarah Palin’s. And John McCain’s. And the Tea Parties for not being serious about cutting entitlements.

    That is why I love Barack Obama.

  5. JeffS
    April 28th, 2010 @ 1:37 am

    Don’t forget that tourism is a human right according to the Euroweenies. Yet another entitlement adding water to that flush of the toilet.

  6. JeffS
    April 27th, 2010 @ 8:37 pm

    Don’t forget that tourism is a human right according to the Euroweenies. Yet another entitlement adding water to that flush of the toilet.

  7. Einstein Was A Physicist. Repeating Others’ Economic Failures, Hoping For Success, Is Sane. : The Other McCain
    April 28th, 2010 @ 5:32 pm

    […] today.Reached for comment on the outlook, Tim Geithner was saturnine about the economy: Previously: Dow Loses 213 Points on Debt Crisis in Greece, Portugal; Rachel Maddow Trying to Figure Out How to B… var addthis_pub='smitty1e';var addthis_language='en';var addthis_options='twitter, digg, email, […]