“Global stocks tumbled Monday after Greece closed its banks and limited the amount of money citizens can withdraw from them after bailout talks with its creditors broke down over the weekend,” Aaron Task reports for Yahoo Finance. “The Greek drama has been unfolding for many months (if not years) but the latest developments revived fears the country could exit the euro zone, with unpredictable consequences.”
“The Dow fell nearly 350 points, or 1.9%, while the S&P 500 lost 2.1% and the Nasdaq tumbled 2.4%,” Task reports. “European stocks suffered their biggest drop in eight months with Germany’s DAX and France’s CAC each falling about 3.5% while major bourses in Spain and Italy fell more than 4.5%. The stock market in Greece was closed but the FTSE Greece 20 ETF, a U.S.-based proxy for Greek equities, fell 19%.”
We’ll see if the Greek people in response to the chaos that is now taking place will vote yes on the referendum instead of having its new Marxist government take them over the cliff on the platform that the private sector should exist to finance a bloated public sector with very generous benefits. That said, a debt write down is an inevitable component of what is a needed restructuring and a no vote (if they can someone stay in the euro after) would quicken that likelihood. On the other hand, if the referendum is essentially a vote on whether to stay in the euro or not (which it seems it will be), a yes vote must take place for the sake of the Greek people. A debt restructuring will then happen eventually anyway. — Peter Boockvar, chief market analyst at The Lindsey Group
“In addition to the Greek news, Puerto Rican Gov. Alejandro Garcia Padilla put additional pressure on stocks by telling The New York Times the island’s debt was “not payable,” raising the specter of default across the Atlantic as well,” Task reports. “But there’s no such thing as a free lunch, as the saying goes; Monday afternoon, the White House said no federal bailout of the U.S. territory will be forthcoming and Puerto Rico cannot declare bankruptcy, as Detroit and other municipalities have done, unless Congress acts to change the law.”
Read more in the full article here.
MacDailyNews Take: Shares of Apple Inc. (AAPL) closed down $2.22 or -1.75%, at $124.53.
Hopefully, Apple’s buyback program is taking advantage of the summer sale.
I took advantage of 500 at $124.60…!!!
Just goes to show the stock market is nothing more than a casino.
What a ridiculous situation capitalism puts us in.
“What a ridiculous situation capitalism puts us in”
Capitalism has nothing to do with it. People will make greedy, stupid, illegal, braindead, corrupt, despotic, nepotistic, and cronyistic financial decisions in any economic system.
I’m guessing that a good part of that $72 billion didn’t help the people of PR or perhaps the government was trying to pay for social programs it couldn’t support
And besides, who loans $72 billion to an island of 3.6 million people? One would think that at around $10 or 20 billion, someone would start some number-crunching.
Yep, I say turn ’em loose, they are noting but a drag.
Another brain dead move by our by government to declare war on Spain in order to steal their possessions. But we’re the good guys, lol.
You want Communism? Read history. Learn the truth.
We don’t have capitalism today. Capitalism is about the investment of capital into enterprises and manufacturers that actually produce services and products. These days they just move “money” around and make more “money” in doing so. No idea what you what call that, but Capitalism isn’t it.
And yes, it’s “money”, not money. Ultimately just meaningless numbers on computers now.
Buybacks are now suspended prior to earnings release and 48 hours thereafter.
But we believe Timber has been buying Amazon, not Apple, for some time now.
There is no bailout money left for Greece or Puerto Rico or common folk in need. All the money was given to AIG and the Major Banks. Oh, and that includes Goldman Sachs. Basically, the guys that did it. And, basically, the 1%.
The US bill for the financial crisis bailout was more than: the Louisiana Purchase, the New Deal, the Marshall Plan, the Savings & Loan bailout of the 1980s, the Korean conflict, the Vietnam war, the Iraq war, the Apollo moon program, and all NASA space flights — COMBINED and adjusted for inflation ! (Per John Lanchester’s book, I. O. U.: Why Everyone Owes Everyone Else and No One Can Pay. 2010. Simon & Schuster.)
Crazy world we live in.
Someday soon we will have to declare a ” do over” and start anew.
Good time to buy Euros at the moment if you’re travelling. The Syriza government has irresponsibility and recklessly brought this crisis upon their citizens. The banks are closed until the referendum on Sunday and the few ATMs that have cash in them are limited to €60 per person per day. If they vote “no” to the referendum Greece will have to leave the Euro and print their own money which is a logistical and practical nightmare – the banks will have to stay closed while they sort it out. If they vote “yes” to the EU deal (which has already expired) then the government has to resign and they must hold elections – the banks will have to stay closed while they sort it out. So the banks will remain closed either way. I lived in Greece for a time, it’s a beautiful country with warm friendly people. The stocks will recover in a matter of days, but millions of Greek families will feel the pain for years.
I know this website would never link to him, but Paul Krugman wrote some very good columns today, explaining the idiocy of the situation, and of the IMF’s stance.
An interesting read, thanks! Before saying the Euro was a terrible idea, it’s worth noting that Greece cooked the books to make it look like they met the convergence criteria. Also none of the Western governments/economies was prepared for the banking crisis that kicked off in the USA with Lehmen Bros. But the Greek government, by calling a referendum, has put the country in a no-win situation. The Germans could call a referendum asking “should we continue bankrolling Greece?” and it’s a safe bet what the outcome would be!
They mostly all cooked the books to secure entry, even France.
Fiscal responsibility. It’s that simple.
Governments, organizations and people need to stop spending money they don’t have.
If money isn’t spent, it isn’t money.
To bankers, the only right kind of money is more money. They have lost sight of the purpose of money as a tool that helps everyone to get what they need. There is no chance the banks are going to change as they are locked firmly in their own mammon delusion. They are making the next 2008 inevitable, because it proved to be profitable.
For a hair raising insight in banking mentalities:
It’s obviously Obama & Tim Cooks fault.
Liberalism is a disease!