As if the world didn’t have enough to be worried about (ISIS, Ebola, slowing China, Ukraine, slowing Germany, Fed tightening, etc.) now look what’s back: Greece. And in a big way.
The stock market is down over 9% on Wednesday, which is about as big as crashes come.
And the banks are getting absolutely smashed.
Greece, which had been calm for a while, is now being wracked by two separate but related things.
One is the rise in the political popularity of left-winger Alexis Tsipras, the leader of the Syriza party, who if he ever got elected to power would take a much more confrontational stance with the rest of the eurozone with regards to austerity.
Meanwhile, a rift is growing between the current Greek government and the rest of the EU as Greece is keen to exit its bailout program. The EU is not so sure.
So now the Greek market is getting crushed.
And it’s not just stocks.
Here’s the deteriorating bond situation.
Report Source: Business Insider