Photo: Air Force
ORIGINAL POST, SEE UPDATES BELOW: The opening bell has only just rung in NYC, and already it’s been a long day.It started yesterday with the market in the US surging on the news that Berlusconi would be resigning.
But the euphoria proved to be very shortlived. A margin hike for traders holding Italian debt reversed whatever post-Berlusconi benefit the markets expected to see.
Yields are exploding in Italy, surging well beyond 7%.
And it’s not just Italy: Spreads are blowing out in France and Spain too.
Everyone is panicking. The Dow is off over 220, and the banks are getting smashed.
We’ll be updating this all day here.
Update 9:50: The Dow is off 270.
Update 10:36: Here’s a look at who’s getting smashed in this selloff.
Update 11:04: markets have staunched the bleeding a touch. Dow off merely 250. George Papandreou is announcing his resignation right now.
Upate 1:23: After an attempt at a comeback, markets are deep in the red again. News that the Greeks still haven’t settled on a new PM isn’t helping anything.
UPDATE 1:57: Things are really getting ugly again, and we’re at the lows of the day. Dow is off 350. The bank stocks are getting lsammed. Both Jefferies and Morgan Stanley — two banks that have been seen as Euro vulnerable — are both off 7%.