I'll repost this here so it doesn't get lost. But Eric has it in three words.
Well, you know how the EU worked out the 5th iteration of their "final plan" to fix the debt crisis? Greece's PM decided that, for the first time, he would like to put it to a referendum...which he hasn't done for the other four packages.
Seriously dude, you've just been given the fiscal equivilant of a golden handshake, and you want to let your pissed off, unemployed citizens decide whether its in their best interests? Dick move lol. In response to this, his party has basically fractured and he now holds just a two-seat majority in parliament, with the opposition parties vowing to scrap the deal if they get in power.
I hark back to this point I made a month or so ago:
...at times like these you need real leaders...
Its quite bizzare really. Everything I'm reading is kind of saying WTF is this dude doing? Just bizzare.
And the impact of this deal falling through will be another "Lehman moment" as its being colloquially called now. It will trigger a disorderly default on Greek debt and will likely push Italy and Spain over the edge too - in which case the newly beefed up European Financial Stability Fund won't be enough to back stop the shitstorm that will happen.
So yeah, things aren't great. Although as we have seen far too many times in this debacle, things can turn on a 5c piece...
On a somewhat related note, interesting read on the banking sector, political class and decision making. Very insightful (this authour is great):http://www.businessspectator.com.au/bs.nsf/Article/European-Union-Greece-debt-crisis-referendum-banks-pd20111102-N7RAJ?OpenDocument&src=sph