Here comes the bad news after a superb run on the earnings.
One is the declaration of bankruptcy of MF Global, a brokerage firm whom using their own capital bet the wrong side of the EU crisis. They bet that the EU crisis will be resolved QUICKLY and they would profit from the debt bonds that they bought. Unfortunately, even though the EU crisis is almost "resolved" with the proposed bailout for Greece they did not managed to profit from it.
There will be surely repercussion for MF Global's bankruptcy as the more things get unraveled. Now there are talks that the customers' money is missing from their account.
And to make things worst, suddenly the Prime Minister of Greece decided to throw a emergency cabinet meeting today to get a referendum on whether to accept the bailout terms or not. It is like they don't want to be rescued at all?? So today DJIA is dropping 300 points breaking down from the 12,000 mark.
Most of the major EU countries WANTS Greece to be saved since that would stabilized the Euro. But now the curve-ball is that Greece MAY NOT WANT TO BE SAVED!! Lol.. Funny right?? Since Greece were the one originally working hard to beg for a bailout. I bet Merkel and Sarkozy will really want to strangle the Greece PM, George Papandreou since they worked hard to get everyone on board. And remember that the Prime Minister of Slovakia put her neck out (her political carrer) and link the vote of confidence to her ruling party's acceptance on whether to participate in the bailout. (1st vote failed, luckily the 2nd round she got her support, or else she will no able to hold her position)
MF Global filed for bankruptcy protection on Monday, after a big bet on European debt threatened to topple it. The firm had about $6.3 billion in direct exposure to troubled European debt, issued by Italy, Spain, Belgium, Ireland and Portugal. It was betting that European problems would be resolved and that it could profit from the bonds it bought when Europe emerged from its debt problems.
Despite the agreement announced last week on Greek government debt, MF Global wasn't able to cash in on its bet. So far, it's the largest U.S. victim of Europe's ongoing debt problems.
Regulators said they have discovered shortfalls in some of MF Global's customer accounts. Companies regulated by the CFTC must account for clients' money and investments separately from money and investments belonging to the company.
LONDON—Greek Prime Minister George Papandreou's call for a referendum on a freshly minted bailout package rattled European officials and global markets, sparking warnings that the move could force the collapse of the Greek government and push the country into a destabilizing default on its sovereign debt.
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