Latest on Greek economy
You keep seeing headlines about the failing Greek economy and its effect on U.S. markets, but perhaps you don’t dig deep into the articles to find out what’s actually happening or perhaps the articles aren’t descriptive enough. Here’s a couple of sentences to inform you on the latest updates on the debt problems facing Greece.
The prime minister of Greece (George Papandreou) has called for a national vote on a controversial rescue plan set forth by the European Union. Originally, the plan was what caused markets to climb in recent weeks, but now that Greece has decided to vote on it (putting its production into question), there is speculation that the rescue plan may never see the light of day. Here’s the important part to know:
“The plan requires banks that hold Greek national bonds to accept 50 percent losses to help keep the Greek economy afloat. It also beefs up a European bailout fund and requires banks to strengthen their financial cushions.”1
Convincing banks to accept major losses is a bit of a last-ditch effort, but with the Greek economy hanging in the balance, investors are hoping that something can be salvaged. The vote is not expected to take place until January, however, so expect plenty of volatility and speculation in the markets until then.
Read on:
CSMonitor – Markets swoon, hit by thunderbolt news of a Greek debt referendum
CNN.com – Greek vote rattles world markets
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Informative post. It’s actually an above post about Greek economy and its effect on U.S markets. I really appreciate what you are bringing up here in this topic. Thanks mate and keep it up.