Once again, markets are getting killed.
- Germany’s off over 3%.
- Italy’s down over 2%.
Things were very bad in Asia, as well.
- Korea fell 3.6% (after initially being down about 5%).
- Hong Kong lost another 3.4%.
US futures are currently off a bit less than 1%.
At this point, the negativity is overwhelming, as statements and news that might have helped things a few weeks ago (like resolving the collateral issue in Greece) are failing to.
The fact that markets have sustained “technical damage” — see here — isn’t going to help things at all.
Meanwhile, the big news of the morning is Dexia, the Beligan financial institution that’s been getting killed lately. After two days of massive selling, an announcement has been made by the French and Belgian finance ministers that the bank’s creditors and depositors will absolutely be protected. The first huge bank bailout of 2008.