The torrential market downpour skipped the pond and is having devastating effects in the United States; investors are exiting stocks and taking shelter in government bonds. The United States 10-Year Treasury Note hit a record low, with yields receding as small as 1.414%, while bailouts seem inevitable in Spain and funds are increasingly scarce in Greece.
It turns out Valencia isn't the only place that needs immediate attention, as six Spanish regions are looking toward the central government for financial help. The Spanish 10-year bond yield is skyrocketing, now trading above the dangerous 7% level. The country still has to sell over $30 billion in bonds this year to cover its deficit and pay back existing debt maturing in 2012.
Spain is the main worry due to the country's size, but Greece is still in the most precarious position in the eurozone. Greece has not fulfilled the stipulations placed on it by the ECB in exchange for its 200-billion-euro bailout. If the austerity measures are not met, the spigot will be turn off and the country will have no option but to default and subsequently exit the euro.
The systemic problems emanating from Europe are causing investors to flee the market, with the Dow Jones Industrials
In the Dow, McDonald's
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