© Reuters/Francois Lenoir
George Papandreou has announced that there will be a Greek referendum to approve the EU bail-out deal which would impose a 50pc haircut on its creditors
George Papandreou has announced that there will be a Greek referendum to approve the EU bail-out deal which would impose a 50pc haircut on its creditors
London's FTSE 100 index of leading shares dropped more that 2pc, with markets in Germany falling, France, Spain and Italy sliding between 2.7pc and 4pc.
Andrew Lim, banking analyst at Espirito Santo in London, said: "If Greek voters reject the unpopular bailout plan it could result in a "hard default", which could force banks to take losses of about 75pc on their Greek sovereign bonds, trigger payouts on credit default swap insurance contracts, and raise the threat of a systemic risk.
"If we get a hard default in Greece, it will exacerbate the situation with Italy and Spain. It just increases the problem of Italy going down the same route, and that's the real risk.
The fall in Europe followed big falls on Wall Street overnight and in Asia, with surveys showing China's manufacturing remained sluggish also weighing on sentiment.
Comment: We've seen this before a time or two. The next thing will be Hillary giving physical [faked] evidence of Mustard Gas, Atomic bombs that can be launched and hit anywhere in the world in less than 15 minutes, etc.. to the United Nations. So many things in this article are implied as statements of facts coming mostly from anonymous individuals.The fact is the Western world has little to no evidence, only mountains of speculation, hubris and a desire to sideline Syria along with the rest of the Middle East that hasn't yet been colonized.
Perhaps a Democracy could rise up, in friendship and trust, and communicate the need for Syria to come clean WITHOUT threats of violence? Sadly there is little to no Democracy going on anywhere in the world.