Information Madness

The doubts on the Greek vote have rattled the world financial markets. All investors around the world have reacted badly to the news that the Greek voters will now get to hold a national referendum on the latest bailout deal that has been directed towards aiming at prevention of a default on the country’s sovereign debt.

This announcement has come as a surprise and it has raised doubts about the entire European Union debt deal that would have erased up to half of Greece’s loan payments. This is going to need some measures by the Greek Government that are not going to be popular

Last week, the investors all over the world were cheering this deal hoping that it would stop the debt worries in Greece and some weaker European nations from spilling across to other borders, almost threatening the seventeen nations that come under the Euro currency.

Now, there is talk that the referendum may not take place till January and that has brought back all the fears that have been plaguing the world markets before this deal issue. Deutsche Bank feels that the chances of Greek voters passing the debt deal look bleak.

A recent poll has suggested that almost sixty per cent of Greeks look at the new debt deal as a negative one. Taking all austerity measures into account for the latest bailout, there is an increasing paranoia about the possible loss of sovereignty.

Most major markets in the world have lost more ground today. Even England’s FTSE fell without it being even a part of the Euro zone.