Dow Plunges 1000 Points; Video of Riots in Greece; Dollar Me

Thursday, May 06, 2010

Dow Plunges Nearly 1000 Points; Video of Riots in Greece; Dollar Melt-Up Continues; Treasury Bears Slaughtered

Treasuries and the US dollar both rallied hard today as panic broke out in Greece and equity markets worldwide.

Video of Greek Riots

Greece riots: 100,000 fight against harsh cuts in Athens financial crisis protests

http://www.youtube.com/watch?v=rshdJZru ... r_embedded

That video is from yesterday. Tensions rose again today.

At one point the S&P futures fell all the way to 1056 from an opening at 1163. I have seen these kind of days close green, but the treasury market sure isn't buying this rally.

Yield Curve as of 2010-05-06 3:15PM EST

http://4.bp.blogspot.com/_nSTO-vZpSg...2010-05-06.png

Bullish Flattening of Yield Curve

That chart shows a bullish flattening of the yield curve as I expected. Those expecting a bearish flattening (yields rising) got their clocks cleaned today as treasury bears were slaughtered.

Mike "Mish" Shedlock

http://globaleconomicanalysis.blogspot. ... eo-of.html

Greece is the "fall guy" in this. It is such a small economy compared to the US and their debt ratio is very high but so is ours. Portugal, Spain, Italy and Ireland are right behind Greece's footsteps.

Furthermore, Goldman Sachs helped Greece mask their debt while making big profits. So when it comes down to it Wall Street and our own lack of regulations brought this "world" crisis. I wouldn't blame the Greeks, I would look in the mirror first.

Anyway, wonder what will happen to all the illegals in Greece now that the economy is so bad. They have a big problem there so if the jobs are few what is to become of them? Same would hold true for other european countries a situation similar to ours here.