Papandreou's Risky Gamble Roils Markets
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Markets are reacting negatively to Greek Prime Minister George Papandreou's surprise decision to call for a referendum on the latest bailout agreed to just last week.
European markets are under heavy pressure on the news, giving back all gains seen after the new bailout deal and then some. The DAX is down 4.9 percent and FTSE is down 2.8 percent.
Papandreou's latest move is a risky political gamble. A "yes" vote on the referendum could calm street protests and strikes that threaten to move the Greek economy further into the abyss. Alternately, a "no" vote threatens to cut off funding to the debt-ridden nation and could result in a default.
A defeat of the referendum also threatens the entire Eurozone. A Greek default may have widespread implications and could trigger a market panic.
U.S. markets are also heavy pressure in futures trading. Dow futures are down 210, S&P 500 futures are down 31 and Nasdaq 100 futures are down 49.
European markets are under heavy pressure on the news, giving back all gains seen after the new bailout deal and then some. The DAX is down 4.9 percent and FTSE is down 2.8 percent.
Papandreou's latest move is a risky political gamble. A "yes" vote on the referendum could calm street protests and strikes that threaten to move the Greek economy further into the abyss. Alternately, a "no" vote threatens to cut off funding to the debt-ridden nation and could result in a default.
A defeat of the referendum also threatens the entire Eurozone. A Greek default may have widespread implications and could trigger a market panic.
U.S. markets are also heavy pressure in futures trading. Dow futures are down 210, S&P 500 futures are down 31 and Nasdaq 100 futures are down 49.
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