Announced Greek Referendum Knocks Markets Down

BBC News – Eurozone debt crisis: Markets dive on Greek referendum.

In the middle of our misery with the aftermath of the snow storm this may not mean much but…

The Greek referendum  on the rescue package and more importantly on the measures of austerity that come with it, announced on Monday by the Greek PM, may not take place until early next year but in the meantime the fate of the Franco-German plan worked out last week remains in the balance.

French president Sarkozy is bewildered by the Greek decision, according to Le Monde.

The referendum, which could derail the entire rescue plan if the Greeks vote NO, means more instability in the financial markets, notably the banking and financial investment sectors.

The FTSE  100 dropped 3.2% in London. Frankfurt’s DAX  plummeted 5.4% and the CAC 40 in Paris fell 4.5%.

It may not be a pretty day in Wall Street.