It's The Economy Stupid: Greece is the word...again

The Greece situation is likely to get ugly (uglier?).  Such a beautiful country, such an ugly economic model.

 

 

Wire: BLOOMBERG News (BN) Date: Nov 1 2011  8:32:45

Stocks, Euro Decline as German Bunds Rally on Greek Referendum

 

 

By Stephen Kirkland

     Nov. 1 (Bloomberg) -- Stocks sank, while a rally in German

bunds sent yields down the most on record, as Greek Prime

Minister George Papandreou’s plan to hold a referendum on

Europe’s bailout fueled concern the debt crisis will worsen. The

Dollar Index headed for its biggest two-day rally since 1992.

     The MSCI All-Country World Index retreated 2.4 percent at

9:30 a.m. in New York, with gauges in Italy, France and Germany

sliding more than 5 percent. The Standard & Poor’s 500 Index

lost 1.9 percent. German 10-year yields fell as much as 26 basis

points to 1.77 percent. Rates on 10-year Italian and French debt

reached euro-era records above benchmark German bunds. The euro

fell 1.7 percent to $1.3629, a three-week low. Copper lost 4.4

percent and oil decreased 3.9 percent to lead commodities lower

after China’s manufacturing growth cooled.

     Greece’s referendum poses a threat to financial stability

in the euro region and increases the risk of a “disorderly”

default, Fitch Ratings said. Papandreou’s grip on power weakened

before a confidence vote on Nov. 4 as six senior members of the

ruling party called on the prime minister to step down, state-

run Athens News Agency reported, without citing anyone.

     “The risk of a Lehman-style disorderly default now looms a

bit larger than before, including some residual risk that Greece

may leave the euro zone if it rejects the offer of orderly debt

relief in exchange for harsh new spending cuts and reforms,”

Holger Schmieding, chief economist at Joh Berenberg Gossler &

Co. in London, wrote in a note. “This could be negative for

markets for equities and other risk assets. It could exacerbate

potential financial turbulence and the euro-zone recession.”

 

 

Boudin Chaud. Cous Cous Froide. Allons Tigres--Poussez Poussez Poussez

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

445 North Blvd, 7^th Floor

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

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Exit 1B I-110 Convention Street, Turn Left to get to North Blvd