Stocks are tumbling today, September 9, because of the possibility of a Greek default. News of Germany shoring up three major banks sent the message that they are not going to bail them out again. The U.S. banks’ stock fell on the news.
“We’re dealing with a confidence crisis,” Matt McCormick, a money manager at Cincinnati-based Bahl & Gaynor Inc., which oversees $4 billion, said in a telephone interview. “You look at the possibility of a Greek default. Investors are making a decision now that they don’t want to be long over the weekend. A lot of people think that Germany will pull out a rabbit from the hat and fix Greece. Germany is fighting its own issues. It cannot be the sugar daddy for all of Europe.”
And, no, it has nothing to do with Obama’s speech.