U.S. stocks fall as Europe frets over Greece
NEW YORK (AP) — U.S. stocks were lower in early trading Wednesday as investors worry over the details of a new bailout plan for Greece.
The Dow Jones industrial average was down 8 points in early trading at 12,957, a day after hitting 13,000 — albeit briefly — for the first time since May 2008.
Investors are worrying that Greece’s new $172 billion deal may not be enough to keep the debt-laden from eventually defaulting and possibly exiting the euro.
The Greek debt deal also requires private sector bondholders to forgive $141 billion in Greek debt by taking a loss on the face value of their bonds and accepting longer repayment periods and lower interest rates. Among the concerns are that the bailout package does not include measures to boost economic growth. The Greek economy is entering its fifth year of recession.
Fitch ratings agency downgraded Greece further into junk status Wednesday morning following the bailout deal.
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By Samantha Bomkamp. AP business writer
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Posted by The Associated Press
on Feb 22 2012.
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