Stocks have dropped sharply during the overnight session. Here's a hint why:
It begins and ends with a big "E", ends with a little "e", and fittingly finishes at the end of a self-tied "rope"! Perhaps this is symbolic of what the continent is doing to itself!
Meanwhile, investors are now demanding much higher interest rates on Italian government debt because the contagion is spreading. Rates are now nearing 7% on Italian bond debt. Investors who buy Greece' bonds are now demanding an interest rate of 200+% -- per YEAR! The expectation of default is so high that an investor will triple his/her money in just one year if Greece doesn't default within that year. Italy is at the same level now that Greece was just a few short months ago.
