Well this sure throws a wrench into the EU's plans to bail out Greece doesn't it?
I find this very noteworthy- finally the Greek government will be asking for the opinions of it's citizens. In typical pompus form, France and Germany seem to have worked everything out for Greece- the only people who were not involved were the Greeks themselves.
And for all the bankers and wall street brokers- your greek investments may not be safe at all now- huh. Maybe you all should not have jumped the gun and concluded that this was a done deal!
Greece will now vote on the matter- and if the vote fails, Greece may opt out of the EU and go their own way.
At this point I’d guess soaring rates on Italian debt leading to a gigantic bank run, both because of solvency fears about Italian banks given a default and because of fear that Italy will end up leaving the euro. This then leads to emergency bank closing, and once that happens, a decision to drop the euro and install the new lira. Next stop, France.
It all sounds apocalyptic and unreal. But how is this situation supposed to resolve itself? The only route I see to avoid something like this involves the ECB totally changing its spots, fast.
We are not out of the woods yet with this economic crisis. Greece isn't happy with the deal, the bankers aren't happy, and the rest of Europe is lukewarm to it all.
Thomas Sowell: There are no solutions, just trade-offs.
From what I've read the EU was built on mostly smoke and mirrors from the start which is why the UK wisely stayed out of it. The weaker European countries relied on accounting tricks to make it look their economies were strong enough to join the union. Phantom money evaporates when things go bad. Hold on to your hats folks, because I suspect a lot of American banks hold some of this "ghost" money and it's about to go "poof!"
YEP, its called contagion......and ALL of the global economy will be included......the Greece deal was based on a house of cards to begin
with and NEVER was concrete......couple this with our "super committee" fiasco and our OWN downgrade again and what you have is a
complete and utter FUBAR.....NOT just my opinion.
Wall St. Losses Pared After Report That Surprise Referendum Is 'Basically Dead'
Some reports are coming out that the Greek Referendum Is Dead.
You just can't count on anything these days- What a mess!
Yes many US banks have bought Greek bonds- anyway you slice it- they will not make any money on those, now it's just a matter of how much they will lose, 50% or will they lose it all?
Wall St. Losses Pared After Report That Surprise Referendum Is 'Basically Dead'
Some reports are coming out that the Greek Referendum Is Dead.
You just can't count on anything these days- What a mess!
Yes many US banks have bought Greek bonds- anyway you slice it- they will not make any money on those, now it's just a matter of how much they will lose, 50% or will they lose it all?
I'm starting to smell another bank bailout.
Too late! The US has already agreed to guarantee any loans US banks have with Greece. More moral hazard? American banks can loan money to Greece at 10% but are covered in the event of a default.
Don't worry, the US taxpayers will cover it.
Thomas Sowell: There are no solutions, just trade-offs.
Reports are now coming in that the previous reports claiming the Greek Referendum Is Dead - may have been mis-reported!
The Referendum does not appear to be dead- the vote is scheduled in 10 weeks.
Stocks were sharply lower again in the final hour of trading Tuesday as investors were rattled over renewed fears in the euro zone. Stocks briefly trimmed their losses after a report that said Greek Prime Minister George Papandreou's referendum call is "basically dead," according to a socialist party official.
