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Risk markets shed a bit more in evening trade after Bloomberg reports Papandreou as saying...

Risk markets shed a bit more in evening trade after Bloomberg reports Papandreou as saying Greece's euro membership will be part of the referendum put to the nation's citizens (rather than just the question of accepting the latest bailout). The euro dives 60 pips to $1.3640. S&P futures -0.5%.
Comments (16)
  • He's outmaneuvered Brussels with this latest move - they just gave him a deal that gets rid of 25% of the overall debt level..... now maybe he can truly get 50% across the board.

     

    Merkel better come to her senses and remember she represents German citizens, not the bureaucrats in Brussels that dream of running the continent. Dump Greece overboard and be done with it - then the Greeks can vote on whatever they want to call their new currency.
    1 Nov 2011, 08:15 PM Reply Like
  • Merkel should shove Greece out of euro and use the money to capitalize European banks and portrugal, Spain and Italy. Let Papandreou starve his pensioners etc come November 15th and impoverish his non productive electorate for the next decade.
    Imagine this is a man elected to represent the people then needs to hold a referendum three months out on a second bailout. Elections are for representatives. Now all of Europe is in trouble for one weak man.
    Dump him and his country and save the expense of a referendum in January.
    1 Nov 2011, 08:26 PM Reply Like
  • Papandreou should be given immense kudos for his stance. Here's a politician, who has finally framed the issue in black-and-white terms and put his own political existence on the line along with it. Where all the Germans, French and others have procrastinated and prevaricated, Papandreou has put the central issue in the bullseye.

     

    Let's hope he's kept in office and just such a decisive vote takes place. The markets, regardless of the outcome, will rejoice.

     

    It would be nice to see any other politician in Europe or here act as decisively.
    1 Nov 2011, 08:28 PM Reply Like
  • What are you smoking?
    2 Nov 2011, 01:13 AM Reply Like
  • Wouldn't it be a positive if Greece did leave the EU? I'd think EU markets would surge as well as US, others.
    1 Nov 2011, 08:41 PM Reply Like
  • the initial shock to the system with the defaults and write offs to banks would be massive . i do agree when the blood hits the streets it could be the buying opportunity of a lifetime.
    1 Nov 2011, 10:33 PM Reply Like
  • the guy who was called a great leader last week was called crazy today ...because he spoke the truth .

     

    greece would be slaves to the euro for the next 20 years. this will be very painful for the greeks but they will probably come out of it faster then they would by being bullied into 1 concession after another.
    1 Nov 2011, 10:31 PM Reply Like
  • If Greece exits the EU then the focus will turn to the other PIIGS. That focus will not be good.
    1 Nov 2011, 10:51 PM Reply Like
  • it could turn to the other piigs.....thats why the euro-bond makes the most sense .

     

    create a 5 trillion dollar bond much like our treasury which is controlled by the ecb . chinese would love to diversify into their biggest trading partners future . the russians , india , japan and even the imf (usa ) would buy in .it would also attract plenty of private money searching for yield and security .

     

    the run on sovereign debt and banks would instantly end. you cant fight an entity that could always issue more debt to stop a run.

     

    italian yields rise because they know the ecb is playing with a weak hand. everyone sees it .
    1 Nov 2011, 10:58 PM Reply Like
  • wolv:

     

    You're right; that would solve the problem, essentially turning the ECB into the Fed. But, that's precisely the problem. An ECB with said powers represents the true creation of the United States of Europe, while, privately, what German politicians envision is the United States of Germany, with all the benefits and no loss of control to an independent ECB, concerning any of the messy costs.

     

    Therein lies the rub. They can't have it both ways.
    2 Nov 2011, 03:05 AM Reply Like
  • Why would the Germans and other fiscally responsible northern European countries guarantee the proliferate spending southern European countries? To me, that seems insane and a sure road to disaster.
    2 Nov 2011, 01:52 PM Reply Like
  • either everyone is all in or just break it up.

     

    we cant pick and choose the parts of the euro we like.

     

    there is certainly a few countries that live off the benefits of other euro members .but they should have thought of that before they let them in.
    2 Nov 2011, 02:27 PM Reply Like
  • Yawn. Greece accounts for less than 0.5% of the world economy. I'd be willing to bet that more has been spent reporting on and reading about Greece than the entire Greek economy produced over the last year. So stay, go, blast yourselves into outer space; I don't really give a damn. Whatever you do, it's not going to matter in the slightest: you're a smaller part of the global economy than a good bottle of whiskey is a part of my spending this year. If you leaving the euro means I don't get that bottle of whiskey, I'm completely happy with that. Anything so that I don't have to read about you any more.
    1 Nov 2011, 11:55 PM Reply Like
  • Greece, fears of unknown, specifically CDSs...I think the cash and leverage and all is lined up now unlike anytime before.

     

    I d pull the band aid and tell the Greeks you maybe want no cash and Drachma, we ll cut you now. Let Greece suffer now. They are clearly not team players in Euroland. Let their suffering be an example for spaiin,Italy and portrugal.
    2 Nov 2011, 01:10 AM Reply Like
  • If Greece exits the euro, the job of cleaning up the PIIS will be quite unpleasant.
    2 Nov 2011, 11:03 AM Reply Like
  • how do you know ? this is what we are told .

     

    i dont believe these guys anymore .
    2 Nov 2011, 01:40 PM Reply Like
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