Friday morning headlines

Stocks fall again: Even a better-than-expected report on retail sales can't stem investor worries about... well, lots of stuff. Dow is down 140 points in early trading.

Endangered euro: Former Federal Reserve Chairman Paul Volcker says the Greek crisis may cause its "disintegration," though he added that it's important to have a common currency in Europe. Earlier today the euro hit an 18-month low. (Bloomberg)

Good primer on Greece: NPR's Planet Money unit looks into the nation's spending spree that led to so much trouble.

Government's blind eye: The agency responsible for regulating oil drilling allowed BP and other companies to drill in the Gulf of Mexico without getting the required permits - despite warnings of the potential hazards. From the NYT:

Managers at the agency have routinely overruled staff scientists whose findings highlight the environmental risks of drilling, according to a half-dozen current or former agency scientists. The scientists, none of whom wanted to be quoted by name for fear of reprisals by the agency or by those in the industry, said they had repeatedly had their scientific findings changed to indicate no environmental impact or had their calculations of spill risks downgraded. "You simply are not allowed to conclude that the drilling will have an impact," said one scientist who has worked for the minerals agency for more than a decade.

Size of spill underestimated? It's estimated to run 5,000 barrels a day, but some scientists and environmental groups say that the amount must be far larger. (NYT)

Seafood prices rising: One L.A. distributor that sells gulf-caught shrimp to retailers and restaurants has seen prices jump at least 30 percent in the last week. Supplies are down, and there are concerns about contamination. (LAT)

Huge cuts in state budget: Among the programs to be targeted are in-home healthcare for the elderly and disabled. The only area to see increased funding is higher education. And no tax increases. (LAT)

Council looks at budget: The Budget and Finance Committee has recommended the elimination of 1,761 positions, 1,000 more than Mayor Antonio Villaraigosa originally proposed.

Videogames take dive: April sales were down to 50 percent from the previous month and 26 percent from a year earlier. Year to date sales are down 11 percent from a year ago. (Tech Trader)

Layoffs at Homeboy Industries: The organization has let go 300 people, most of its staff. It's another casualty of the inequitable way in which philanthropic dollars are distributed in L.A. From the LAT:

Father Gregory Boyle said no amount of campaigning and fundraising could make up the roughly $5 million the organization needed to operate. He said pleas for donations had resulted in some help, but not nearly enough. He acknowledged that the people Homeboy Industries helps have always been a hard sell, and more so when the economy is struggling. "If these were puppies or little kids, we wouldn't be in this trouble," he said. "But they're tattooed gang members with records. So I think a lot of people love this place, but not the folks who can write the big checks, the 'Save the Hollywood sign' check."

KB Home keeps skidding: L.A.-based homebuilder's stock is down a bunch more this morning after yesterday's 7 percent decline. An analyst downgrade is being cited.

LAX-Tokyo: Delta's new service to Haneda Airport will begin before the end of the year. The airline already flies from Tokyo's Narita Airport to 11 U.S. cities. (press release)

More roadblocks for Tribune Co.: Creditors are objecting to the company's proposed reorganization from Chapter 11. (Chicago Tribune)