The euro fell sharply on Tuesday and major indexes in Europe and the United States tumbled as the sovereign debt crisis in Europe and the risk of contagion continued to hang over the market.
At the close, the Dow Jones industrial average was 225.06 points, or 2.02 percent, lower. at 10,926.77. The Standard & Poor’s 500-stock index fell 28.66 points, or 2.38 percent, to 1,173.60, while the Nasdaq dropped 74.49 points, or 2.98 percent, to 2,424.25.
In London, the FTSE 100 declined 2.56 percent or 142.18 points, while the DAX in Frankfurt fell 160.06 points to 2.6 percent. In Paris, the CAC-40 dropped 139.17 points or 3.64 percent.
Although the 15 other countries in the euro zone and the International Monetary Fund had agreed to give Greece 110 billion euros ($144 billion) in aid over three years, traders said the austerity plan remained a hard sell. Hundreds of Greek demonstrators took to the streets on Tuesday to rail against tough new austerity measures aimed at helping the debt-ridden country stave off economic disaster.
(Source: NY Times)
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at least Greece has someone to bail them out – the US and UK are running equivalent deficits (measured by taking the government’s deficity relative to the size of the economy) – and who is going to bail us out?