MARKET NEWS: Dow slides 200+ on Italy fears

[OhioChick]

11:54 a.m. ET


U.S. stocks were tumbling Wednesday as the markets fretted about the possibility that Italy could default on its debt.

The Dow Jones Industrial Average ($INDU -1.89%) was plunging 199.8 points, or 1.6%, at 11,970. The S&P 500 ($INX -2.18%) was down by 24.7 points, or 1.9%, at 1,251, and the Nasdaq ($COMPX -2.30%) was losing 55.7 points, or 2%, at 2,672.

U.S. stocks tumbled as the markets feared for the future of Europe's third-largest economy. Italy's borrowing costs headed toward untenable levels even after a crucial budget reform measure was passed by the Italian Parliament on Tuesday.

Italian Prime Minister Silvio Berlusconi's promise to step down failed to end the protracted period of political uncertainty in the country, and that, combined with the move by clearinghouse LCH.Clearnet to hike the initial margin required to trade Italian bonds, mobilized a snowball effect that helped trigger soaring yields Wednesday.

More: http://money.msn.com/market-news/post.aspx?post=7cd6f989-7e47-43e4-8a2d-b92880a91204

[dipsydoodle]

1. Italy would need to sell over 300 billion in bonds next year

to rollover current debt. There are doubts that is achievable.

[exboyfil]

2. 3rd largest economy

How about 4th largest (Germany, France, UK)? Did it pass one of these three?

[zbdent]

3. wait ...

the "liberally-biased media" isn't blaming it on mostly Republican losses at the polls?

ALERT THE ... um ... er ... never mind ...