PUNCH ONE, ITALY: Stock indexes started lower after Italy's borrowing rates skyrocketed past 7 percent. That's the same level Greek bonds reached before that country needed a bailout. Problem is, Italy is widely considered too big to bail out.
PUNCH TWO, GREECE: Greece descended further into political chaos as talks between the two main parties on forming a new government collapsed. Greece needs to act quickly to secure the next installment of emergency loans that have been keeping the country out of bankruptcy.
THE DAMAGE: The Dow Jones industrial average plunged 389 points to 11,780, its worst drop since Sept. 22. The S&P 500 fell 3.7 percent, its worst fall since Aug. 18.