Europe’s ‘Stark’ Realities Slam Stocks

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Europe’s ‘Stark’ Realities Slam Stocks: Dow Slumps 304 Points

The proximate cause for Friday's rout was the surprise resignation of ECB board member and chief economist Jurgen Stark. The resignation leaves the ECB board with only one German, Jens Weidmann, spurring speculation of a massive upheaval in the eurozone.

"The announcement fuels two paths of speculation," writes BTIG chief global strategist Dan Greenhaus. "Either the Germans are slowly laying the groundwork for removing themselves from the eurozone or pressure from Germany will eventually lead to the ouster of Greece from the zone."

Despite repeated protests to the contrary from Greek policymakers and politicians, the odds heavily favor the latter outcome.