Posted on 11/01/2011 7:27:07 AM PDT by Pan_Yan
On Monday, U.S. stocks racked up their best month in 20 years in October.
Greek Premier George Papandreou said he will put Greece's bailout deal through a referendum, potentially undoing a long-awaited agreement struck just last week and sending European stocks down 4.4 percent. The region's bank shares fell 7.9 percent to $16.25.
Greek opposition parties said the referendum was putting Greece's European Union membership at risk and instead called for a snap election.
U.S. bank shares were expected to follow European lenders lower. The Financial Select Sector SPDR fell 4 percent with Bank of America down 5.9 percent and Morgan Stanley down about 7 percent.
"The market did not see this Greek referendum coming, which is potentially a killer and could knock the wheels off the bus of the whole (European rescue) plan," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"If the Greek people were to vote for this it would give it a lot more weight," he said. "It's just the uncertainty between now and then what puts the rally in question."
(Excerpt) Read more at foxbusiness.com ...
The EU is going to break down.
The only question left is when the war will start.
“Don’t mention the war....I mentioned it once, but I think I got away with it all right.”
After taking a 30-50% haircut, who in their right mind would invest in Athens again?
Wow put it to a vote - what a thought!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.