Stocks Drop Because of Fears About Greece

Debra Borchardt analyzes the morning's business headlines.
7:36 | 02/10/12

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Transcript for Stocks Drop Because of Fears About Greece
This Friday February -- hello everyone I'm Stephanie -- in New York's Dow futures were down sharply this morning. As a bailout for -- hit another roadblock. Joining me now to discuss all the business headlines at this hour is Deborah -- shark from the street -- great to see you happy Friday morning so in just the past hour we got a new reading on the US trade deficit let's start there at wide and to 48 point eight billion dollars for the month of December and that brings the deficit for all of 2011. To 558. Billion dollars -- just beyond the headline here. Well really the number isn't too far awful what the analysts had expected they have come in at 48 so. It really isn't affecting the market as much as what we're seeing out of Greece and that whole drama that you just mentioned. Because they looked at the trade -- it and it's pretty close. Close enough. OK let's turn to Greece then workers there we've been reporting this morning have walked off the job again this time for a 48 hour strike. Just yesterday Deborah look like everything -- might be settled in the country was going to get another bail out what happened. Well as we know the the head of the country said -- sure we'll give you what ever you want. As long as we can get that money in because were really running up against while we got payments we got to make. And so -- -- said that's great but. What is your parliament say you may say you're agreeing to this -- they say. And that's what everything ground to halt because they're going to be voting on that this weekend -- they say we're not gonna go for this you know again we're back to square one now. They've got a history of saying yes sure will do whatever you want and then they just don't do it right gotten the bailout money. And so that the question is is can they even you know an act. These cuts that they keep agreeing to and that the general feeling is no they can't. And you're also starting to see a lot of -- politicians as bail out so you know -- -- saying Fisher cut they are all cutting baker all of -- -- and quite and we don't want any part of. -- -- so much pressure from the people because they're the ones they need to take these austerity measures they're the ones that need to -- the cots. And it what's the alternative at this point. Right there is no alternative I mean you're gonna take -- 20% pay cut of what -- audience -- -- percent of the people are unemployed there. And and that the austerity cuts that they had supposedly agreed to just now. Are going to go for the next eight years they mean can you match that for eight years this is gonna go on so it's just it's kind of you know everybody's -- at the thing and I this situation has got to get. Result it's not gonna get resolved in a positive manner and the markets don't seem to like that today okay back here at home Deborah. Ben Bernanke speaks today about the housing market anything we should be listening specifically for. This is a huge speech and -- normally you wouldn't think that this is a huge speech but here's why. So out he's going to be talking about how -- -- in Florida where we all know -- helping has been a disaster. And what. The market expects -- he's going to start to lay the ground for some. Quantitative easing. What he's going to -- what we're gonna be -- -- is he gonna say we think the Fed needs to go in and instead of buying treasuries how they've been propping up the treasury market. We need to go in answer to buys some of these mortgage backed securities and really start to pump that market up and really. Back it up with a lot of money the promise is that. You start to create this really -- housing recovery situation. Well that -- to my next question because there's obviously been a lot of talk in the last couple days about this point five billion dollar settlement between the states. And five of the largest banks which of course has to do with foreclosures and and mortgage lending practices. Is this agreement -- perceived as being able to help or boost the housing market at all. -- not really you know it it it's not even going to help that many people there's a lot of restrictions about who's actually going to get any of this money. And the problem is is that you know and they had to do that because. There's lots of people like me that we're really cool and pay their mortgage like Alice supposed do and did the responsible thing and where the people -- -- hey wait imminent. That's not better. And so they put all these tight restrictions around who's really gonna get this money. And that's the problem is that kids it's a little bit -- help but not a lot. And politically it was done -- to look good like we're trying to help these unfortunate people -- it terribly important people. But it is only gonna help them so much. OK let's manages some of the -- stopped -- her apple spent a lot of rumors. And apparently the stock is moving higher on reports that the company is about to announce an -- had three in coming weeks is affecting the market overall. Right -- job do you rumors you know Abby girl I -- very -- how many times they get you know -- -- And so that's what's been happening this week all these rumors there's you know -- apple never says anything but -- been rumors like crazy about an apple. IPad three and that has made the stock is that you didn't they can go any higher you went up even higher I would check it owns stocks because -- -- -- -- that had that one and and so the problem is is that apple is a huge part of the NASDAQ it's a huge part of many indexes. And so it's it's created this false impression that these. Indexes in that the market is really doing very very well when it's really just as one stop the does is -- everything. That's an interesting insight and we have seen quite a runup in stocks since the start of the year do you think we may be -- for some sort of correction soon. It is possible and here's 3 -- because we're starting to see a lot of insider selling -- not apple but insiders selling. Across many sectors and that these skies they're always the ones that know when things your -- gonna happen cell. When you start to see insiders selling at a very rapid pace in makes you wonder what they know. And they usually know what's going on and -- and then you've got all this Greek drama and they got a doomsday. Date back in March. And so I think that it's all starting to set up that -- apple comes back down hurt you know we just don't have a lot of support them. -- they certainly harassing the market's cool off a bit in the first few minutes of trading here on this Friday heartless about caesar's because they went public again. On Wednesday and it started trading at nine dollars and almost hit eighteen but is an -- -- back to around 1450. Where do you see this stock moving from there this -- and -- I mean it really is -- -- even light -- -- even. Try to sugarcoat it there was only 1% of the company that was actually sold and stock. And they have tons of data mean this is a super highly leveraged company. And -- the people that are controlling her very much insiders and and you just don't want to be a part of this. Again it was a very small amount has thought them. And sometimes these companies will do that they'll only put. A little bit out there and when they do that it creates this false demand and it shoots the stock up it's a very calculated move. And that's why it started to come back down. I you know I think once people really seem to realize what they've got here it's a dog and and you really just to stay away from -- -- your opinion is that this is too risky of a -- like that's my way -- risky very speculative OK anything else are going to be watching today Debra. We know what we're really -- son is what's going to be happening this weekend with this -- parliament vote. And then also next week we're gonna start to hear a lot of noise about this payroll tax cut because. That will. Really resolved and so I think come Monday that's what -- -- to -- talking about is once again that payroll tax. All right as we leave -- -- abortion are from the street the Dow down more than a hundred points have a good weekend ever thanks so much gives him.

This transcript has been automatically generated and may not be 100% accurate.

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