Domino Effect : 'Debt unpayable, Greece to exit Euro mess'

From: RussiaToday on Nov 1, 2011    • Video   Thousands of anti-capitalists are marching in the French Riviera ahead of the G-20 summit in Cannes. Groups of international activists are urging the leaders of the world's top economies to focus on people, not finance. James Meadway from the New Economics Foundation shares his view on the crisis that's strengthening its grip on Europe. RT on Twitter   / rt_com   RT on Facebook   / rtnews   ............................................................... Greek referendum is coin-flip on euro exit The Greek referendum call is, while it lasts, effectively a plebiscite on euro membership. I say "while it lasts" because the opposition is mobilising a parliamentary manoeuvre to bring down the government, which may succeed - returning Europe to its status quo of containable trauma. If Greeks reject the 50% controlled default on the debts they owe to the banking sector, then the arithmetic I revealed on Newsnight on the eve of the Euro summit comes into play - without a 50% haircut, and a further 130bn euro bailout, on top of 110bn, Greek debt spirals out of control and the country goes bust. http://www.bbc.co.uk/news/business-15... ............................................................... NOVEMBER 1, 2011, 3:01 P.M. ET 2nd UPDATE: Greek PM's Referendum Plan Stuns Europe, Rattles Markets NOVEMBER 1, 2011, 3:01 P.M. ET 2nd UPDATE: Greek PM's Referendum Plan Stuns Europe, Rattles Markets Article Email Printer Friendly Share: facebook ↓ More smaller Text larger -- Greek PM's decision to call referendum causes markets to plummet -- Move also threatens survival of Greek government -- Government holds emergency meeting ahead of parliamentary debate starting Wednesday (Adds comments from European official on Cannes meeting in 11th through 13th paragraphs.) By William Boston, Costas Paris and Gabriele Parussini Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Greek Prime Minister George Papandreou's decision to call a referendum on a freshly minted bailout package Tuesday sent shock waves across European governments and markets, sparking warnings the move could push the country into a disorderly default on its debts and destabilize the entire euro zone. The move also opened a rift within Greece's ruling Socialist party, threatening the government's survival after one lawmaker resigned from the party in disagreement with the referendum while a senior party member called for early elections. The Greek government was holding an emergency cabinet meeting late Tuesday ahead of a parliamentary debate on a vote of confidence for the government that would start Wednesday and end with a vote Friday. http://online.wsj.com/article/BT-CO-2... ........................................................................ Greece crisis deepens: Military chiefs sacked after shock call for referendum on austerity cuts sends markets tumbling Chiefs of staff at Greek National Defence, Army General and Air Force get arching orders for no clear reason Sarkozy and Merkel call emergency meeting over referendum call Huge losses for French banks exposed to Greek debt 'More important than ever' to push ahead with bailout, says Sarkozy FTSE 100 falls 3.4 per cent after opening Germany's Dax falls and French CAC-40 plummet by more than 5 per cent 59 per cent of Greeks think deal is 'negative' 'No' vote could prompt country's exit from the Euro 228-year-old US brokerage MF Global goes bankrupt due to euro bonds Chinese warn hopes of 'red knight' riding to slay euro debt dragon are 'misplaced' Comes as UK growth figures 'better than expected' By James Chapman, Hugo Duncan and Daniel Miller Last updated at 7:32 PM on 1st November 2011 Read more: http://www.dailymail.co.uk/news/artic...