The beginning of a double-dip? The U.S. markets are tanking this morning on fears of a default in Greece and a bank crisis in Europe at large. Currently the Dow Jones Industrial Average is down more than 200 points, and the S&P is down nearly 2 percent, making for a 15-month low for world stocks. If you’re feeling somewhat superstitious/pessimistic this morning, you may not want to look at a chart circulated by a Citigroup technical analyst, and passed along by Business Insider’s Joe Wiesenthal, titled “For Those Who Don’t Believe History Repeats Itself…” noting that the S&P closed at precisely the same level yesterday as it did on October 3, 2008—one day before the markets took an absolute killing:
Scary stuff! For more grounded contextual analysis, The New York Times’s Joshua Brustein explains what’s happening in Europe that’s frightening investors.
y, finance ministers from the 17-nation euro zone postponed moves to release the next installment of aid to Greece, which means that Greece is now unlikely to receive 8 billion euros ($10.6 billion) before November.
ng shares fell sharply, led by Dexia, whose value has plunged this week because of its exposure to Greek debt…
“What you’re now beginning to see is they [investors] are now picking out the banks. Dexia is the weakest,” Justin Urquhart Stewart, director at Seven Investment Management, told Reuters.
“Politicians have to stand behind these banks — whether you call i
t state support, nationalization, you have to keep the financial system working otherwise we will end up with another credit crisis.”