A Chronology of the Greek Contagion

1) Markets get spooked by the Greek crisis ; IMF/EU  Bailout  deemed insufficient

2) European markets and risky assets take a might fall

3) Dow crashes 1000 points in 15 minutes

4) The European Bazooka is Unleashed with a lot of Fanfare;Merkel and Sarkozy declare “war” on speculators

5) Massive short covering rally leads to some people thinking that the Dow Flash Crash was a blip .

6) The Short Covering Rally Fizzles out as Austerity measures announced led fears of a deflationary trap

7) Markets Fall as Germany declares a sudden ban on naked short selling ; US Senate surprises with restriction on Credit Card Fees

Merkel almost declared defeat against the Euro speculators;Thinks that the Euro is at Risk

Wall Street Craters Again as European Fears show no signs of resolution

Wall Street slumps on euro zone fears – Yahoo

Stocks dropped on Thursday, with all major indexes sliding more than 3 percent on growing fears that the euro zone’s handling of its sovereign debt crisis could jeopardize the global economic recovery.

The S&P 500 is now down more than 10 percent from its April.high, signifying a correction. The index is also below its 200-day moving average.”Europe is causing a correction that calls the whole recovery into question,” said Andy Fitzpatrick, director of investments at Hinsdale Associates in Hinsdale, Illinois. “It’s not outside the realm of possibility that we could drop another 5 percent from here.”Germany’s unilateral decision on Tuesday to ban naked short-selling has triggered worries about additional regulation and hurt the euro, which was down 0.5 percent versus the dollar