Blame the tumultuous tumble in equities Wednesday on Europe.
World markets were shaken as worries over the Eurozone debt crisis, in particular the Spanish banking system, again rattled investor confidence.
The Dow Jones was down 160 points, the S&P 500 fell 19 and the Nasdaq lost 34.
Sending shivers through markets Wednesday was a statement from the European Central Bank (ECB) saying it had not been...
Eurozone Descends into a Farce as "Grexit" Looms Large
The elections on May 6 only made the Eurozone's problems even worse. The French and the Greeks have rejected sensible policies in favor of self-delusion.
Those elections, and the failure of Greece to form a government, have actually moved the Eurozone crisis one step further - from potential tragedy into a complete farce.
The Fate of the Eurozone Hangs on Sunday's French Elections
It now looks as though Nicolas Sarkozy's days are numbered. In the balance lies the fate of the Eurozone itself.
It appears Socialist Francois Hollande will win the French election runoff on Sunday and that June's legislative elections will give the Socialists a powerful position in France's parliament.
Added to these developments is the good chance that both the major existing parties in Greece's parliament, which had jointly agreed to the...
Why Wall Street Can't Escape the Eurozone
Despite all of its best hopes, Wall Street will never escape what's happening in the Eurozone.
The 1 trillion euro ($1.3 trillion) slush fund created to keep the chaos at bay is not big enough. And it never was.
Spanish banks are now up to their proverbial eyeballs in debt and the austerity everybody thinks is working so great in Greece will eventually push Spain over the edge.
Spanish unemployment is already at 23% and...
The Greek Bailout: Why I'm Mostly Bullish about the Eurozone
Last week's news that Eurozone GDP declined by 0.3% in the fourth quarter of 2011 set all the usual pundits moaning about the inevitable decline of Europe.
Even Andrew Roberts, a wonderful historian with whom I almost always agree, wrote in the Financial Times that "Europe's fire has gone out."
Today, the markets may welcome the Greek bailout deal, but behind the scenes they...
Three Doomsday Scenarios: What Happens If the Eurozone Breaks Up?
The time has come to confront an ugly truth: The possibility that the Eurozone will break up, or rather fall apart, is growing increasingly likely.
In fact, I'd say given recent developments in Italy the probability of a breakup is as high as 40%.
Indeed, if a country as small as Greece or Portugal were to default or abandon the euro, the effect on the Eurozone would be...
The One Country That Could Take Down the Eurozone – And It's Not Greece
It's been a rough few weeks for the Eurozone.
Portugal is still in trouble, Spain will be back on the coals after its Nov. 20 election, and if I were a bond trader, I would be shorting Belgium, which has serious deficit and debt problems, runs for months at a time without a government and is in some danger of splitting apart into its French and Flemish bits.
A bailout package for Greece has been...
Does the Eurozone Have Its Own Lehman Bros?
Does the Eurozone have its own American International Group Inc. (NYSE: AIG), or worse, its own Lehman Bros. when it comes to Greece?
I believe it does.
Why else would the European Union have bent over backwards to "save" a member nation that: A) Accounts for 2.01% of the EU by trade volume; and B) Would essentially be like letting Montana go out of business - no offense to Montanans or Montana!
More to the point, if things...
Eurozone Forecast: How to Profit From the Hidden "Good News" in Europe
If you wanted to describe how most of the European nations fared in 2010, you would do so quite easily by citing the old adage: "If it wasn't for bad luck, they'd have no luck at all."
Truth be told, Europe was in the news for most of 2010 - but for all the wrong reasons. A series of financial panics hit the weaker Eurozone countries hard, forcing draconian austerity measures in many countries and igniting concerns that the euro...
Germany's Export Reliance Edges Out European Neighbors
By relying on exports and not promoting domestic demand, Germany is creating a lopsided recovery that is hurting retailers and foreign exporters.
While Germany's exports continue to surge, its consumers are refusing to spend. The government has failed to raise wages or encourage consumption and says it has few plans to do so.
"By cutting its budget deficit and resisting a rise in wages to compensate...