Stocks slide as euro pops on buzz that Greece is considering exit from European Union

The new MacBook “Stocks declined Wednesday as the euro got a boost from news that Greece was considering leaving the European Union,” CNBC reports.

“The euro clawed back against the dollar and other currencies amid buzz in the market that Greece is considering leaving the European Union,” CNBC reports. “A spokesperson for Greece categorically denied the debt-riddled nation is considering such a move.”

CNBC reports, “Earlier, the euro hit a four-year low against the dollar after German Chancellor Angela Merkel said the euro was in danger and as Germany banned naked short selling of some securities. This came as the SEC released proposed new rules on single stock trading, to prevent a stock being driven down to a penny like some were during the May 6 market freefall. And Congress is about to make a preliminary vote on financial reform.”

CNBC reports, “Still, Sterne Agee initiated coverage of Apple with a ‘buy’ rating and slapped a $300 price target on the stock, saying it doesn’t see a slowdown for the iPhone and iPad maker.”

Full article here.

35 Comments

  1. Of course you would reference an article by communist and Obama apologist Paul Krugman. (If you want to know what a condescending attitude is, meet Paul Krugman. He’s WAY too proud of his Nobel in Economics, and will gladly tell you that he is smarter than you are. I will patiently wait until his flawed economic theories are harshly repudiated by reality.)

    To Krugman, Greece is really swell, and we should be following their lead. I want to do that as much as follow the lemmings off the cliff.

  2. The EU and the Eurozone are two separate entities. Greece cannot afford to leave the EU nor remain in the Eurozone. The only good thing to come out of this is that it gives Spain, Italy, and Portugal serious wake up calls about their own overspending and lack of tax enforcement. The rest of Europe will be far healthier financially thanks to events in Athens.

    As for the Euro hitting a four-year low against the US Dollar, some around here seem to have forgotten that just seven years ago one Euro was worth around $0.88. So if the Euro is now in terminal decline, what does that say about the US Dollar?

  3. @CourtJester

    Some CNBC journalist can’t tell the difference between the European Union and the Eurozone that’s all. Greece’s departure from the Eurozone has been mooted for the past couple of weeks. It will allow them to default on their debt, devalue their currency, and prevent leaving future Greeks struggling to pay off their previous governments’ overspending for decades. The only other option for Greece is to rely on handouts from France and Germany, who have both given signs that they are nearing the limit of what they are willing to pay.

    Sooner or later the lack of tax enforcement, ridiculously low retirement age, overgenerous benefits, and corruption was going to collapse the ceiling on the country. Looks like it’s actually happening.

  4. Good, can’t happen quick enough. They should never have been allowed to join the euro in the first place.

    80% of the “taxpayers” in Greece don’t pay their taxes! No wonder they’re having these problems. The first thing the Greek government should do is beef up its tax collection and enforcement unit. Then maybe they’ll start on the road to acting more responsibly.

  5. “Of course you would reference an article by communist and Obama apologist Paul Krugman. (If you want to know what a condescending attitude is, meet Paul Krugman. He’s WAY too proud of his Nobel in Economics, and will gladly tell you that he is smarter than you are. I will patiently wait until his flawed economic theories are harshly repudiated by reality.)”
    To Krugman, Greece is really swell, and we should be following their lead. I want to do that as much as follow the lemmings off the cliff.

    To Whom It May Concern too timid to use a name:

    You clearly haven’t read Krugman’s op-ed column in the link I provided. Instead, you recited the tired and trite right-wing pap and made up lies to fit it.

    Nowhere in the column does he say “Greece is really swell.” Krugman makes the point that a big part of Greece’s problem is it doesn’t have its own currency, like say, the U.S. or U.K.

    Nowhere does he say, “we should be following their lead.” Instead, Krugman writes, “During the good years, when capital was flooding in, Greek costs and prices got far out of line with the rest of Europe.”

    Show me a column in which Paul Krugman declared himself a Communist. Oh right, he hasn’t.
    In the interviews I’ve seen on TV, I also haven’t heard him brag about his Nobel Prize in Economics.
    Project much?

    You also clearly missed a columns in which he criticized some of Obama’s choices. Look those up if you want to educate yourself.

    As far as “His flawed economic theories,” neither Krugman nor Obama invented the theory of Keynesian economics. Far from being “harshly repudiated,” the U.S. economy is slowly growing and recovering because that theory was implemented. It isn’t happening by magic.

    I don’t agree with all of Krugman’s positions such as some of his ideas on tariffs.
    But if you’re going to attempt to debate me, try something besides mindless right-wing pablum, name-calling and fabricated comments Krugman never made.

  6. Good ol’ MDN, trying to get us all crazy by raising an economic and political issue with oh-so-distant ties to anything Apple-related. And we take the bait like the lemmings we are.

    @Islandgirl
    “Nowhere in the column does he say “Greece is really swell.” Krugman makes the point that a big part of Greece’s problem is it doesn’t have its own currency, like say, the U.S. or U.K. “

    This is basic national economics and monetary policy, and you, and Krugman are spot on. Krugman is excellent on economics–I dislike his politicking and opinion-writing, but that’s entirely separate. Greece is simply showing how when a country hits a crisis and needs to respond, other nations in a collective form of government can restrict and/or inhibit that response.

    With that said, I am no economics expert. I tend to read Megan McArdle’s blog on the Atlantic, as her political view tends to reflect mine. Thus, her articles are easier for me to understand.

    Personally, I am enjoying the crashing Euro, at least temporarily. It is making my trip to Italy in the next 2 weeks that much more affordable. Now if that darn volcano will just hold off…

  7. Indeed! It is so much more fun being a tourist from US in EU this summer! Two years ago, a 20EUR dinner cost me $32. This summer it will be less than $25. Major difference for a family of four! On a $6,000 budget, it is almost a full $1k less!!

    Thanks, Greece!

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