This is just the same profiteer trick over and over. They announce a resolution, cause a bounce, make a profit, the deal collapses and the world heads for financial Armageddon anew. It's the same stunt the Rothschilds used at Waterloo.
The index gave up all the gains made on Thursday, when banks staged their biggest rally for 18 months after EU leaders and banks agreed to write off half Greece's debt as part of a wider euro zone rescue plan.
If Greek voters reject the unpopular bailout plan it could result in a "hard default", which could force banks to take losses of about 75 percent on their Greek sovereign bonds, trigger payouts on credit default swap insurance contracts, and raise the threat of a systemic risk, said Andrew Lim, banking analyst at Espirito Santo in London.
If Greek voters reject the unpopular bailout plan it could result in a "hard default", which could force banks to take losses of about 75 percent on their Greek sovereign bonds, trigger payouts on credit default swap insurance contracts, and raise the threat of a systemic risk, said Andrew Lim, banking analyst at Espirito Santo in London.
Greek Prime Minister George Papandreou called a referendum and a parliamentary confidence vote, raising the prospect of derailing Europe’s bailout effort and pushing Greece into default. Stocks and the euro tumbled.
Papandreou’s gambit risks pushing the country into default if rejected by voters, and raises the ante with dissidents in his own party. Papandreou’s popularity has plunged after a raft of austerity measures cut pensions and wages, increased taxes and sparked a wave of social unrest. An opinion poll published Oct. 29 showed most Greeks believe the accord on a new bailout package and a debt writedown is negative...
“In addition to constituting a major political gamble, the run-up will put the European Central Bank, EU and International Monetary Fund in a tough position regarding disbursements to Greece,” El-Erian said in an e-mail today. He also expressed concern that the European Union deal “appears to be unraveling from many sides.”
SPQR
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