Stocks Fall as Draghi Sees Substantial Downside Risks to Euro Outlook

After opening in positive territory Monday morning, US stocks are now sharply lower. The Dow Jones Industrial Average last traded at 11,815, down almost 51 points from Friday's close. The Nasdaq is down nearly 11 points and the S&P 500 is down about 8.

Traders are attributing weakness to recent comments from the ECB President Mario Draghi in Brussels. Below are some highlights:

• substantial downside risks to the Euro outlook remain
  
• intensified tensions keep damping growth
  
• a recent treaty forbids the ECB from taking any monetary financing action
  
• bond markets are facing significant pressure moving into 2012
  
• inflation will push over 2 percent for "several" months
  
• called the decision from the Dec 8th and 9th EU Summit a "breakthrough"
  
• has began preparations for working with the EFSF
  
• regulators should reduced the need for credit ratings
  
• trust must return in order for confidence to return
  
• monetary policy can't do everything
  
• a firewall is needed in order to fight temporary instability
  
• the ECB addressing funding is currently the most pressing issue
  
• the ECB is valuing collateral at market prices before the haircut

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