So Much For The Euro-Greek Bailout

FTSE Drops After Greece Calls Shock Referendum On Cuts Which Threatens To SINK Euro Bailout -- Daily Mail

* FTSE 100 falls 2.6 per cent after opening
* Dax, Nikkei, Dow Jones and Nasdaq also tumble
* 59 per cent of Greeks think deal is ‘negative’
* 'No' vote could prompt country's exit from the Euro
* 228-year-old US brokerage MF Global goes bankrupt due to euro bonds
* First Greek referendum since 1974 when monarchy was abolished
* Hopes of Chinese red knight riding to slay euro debt dragon 'misplaced'
* Experts warn of second global recession and social unrest
* Comes as UK growth figures 'better than expected'

Financial markets around the world have tumbled in reaction to the shock announcement that Greece is to hold a referendum on the latest aid package to solve its debt crisis.

The FTSE was down 2.6 per cent , Germany's Dax fell by 4 per cent, the Dow Jones fell 2.3 per cent and France's CAC-40 lost 3.3 per cent.

Markets in Asia have also fallen with Japan's Nikkei closing with a 1.7 per cent drop, Hong Kong's Hang Seng losing 2.5 per cent and Australia's S&P/ASX shedding 1.5 per cent.

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More News On Greece's Decision To Have A Referendum On The EU Debt Agreement

Greek Vote Gamble Stunned Euro Partners, Merkel Allies Say -- Bloomberg Businessweek
Greek leader's referendum bombshell -- The Guardian
Eurozone debt crisis: Markets dive on Greek referendum -- BBC
Fury in Germany after Greek referendum call -- Reuters
Greece’s Referendum Step Leaves Europe Aghast -- Wall Street Journal

My Comment: I guess the Greeks are not satisfied with an agreement that gives them a 50% cut in their debt .... instead .... this call for a referendum is to not only a tactic to give political cover for Greek leaders, but to also position themselves to ask for more. Sighhh .... this is going to be not only a political disaster, but an economic one for Greece and for the EU. I expect the referendum will overwhelmingly reject the EU bailout agreement resulting in the road being paved for Greece to leave the EU and to declare a "defacto state" of bankruptcy.