World markets crumbled

First Headline

Greek Government has proposed to put its austerity plan to a public vote. If the plan failed to go through, Greece could drop the European currency and default on its debts.

World markets crumbled on hearing the proposal by Greek Prime minister.



Asian closed with about 2% down.



French CAC40 and German DAX dropped more that 4% at this moment.



US market dropped about 2% after about 2 hours of trading. If Dow dropped more than 2% at the close, the probability is high that the wave 2 rebound has ended.


Personally I expect the Greeks to protest against any austerity measure and then continue with their happy life under the Warm Mediterranean Sun.



I have been searching for a possible cause for Dow to reach 5,000. I think finally it is still the European debt problem and a possible disintegration of the Euro to pull down the world markets.

Second Headline

MF Global Filed for Bankruptcy Protection

MF Global, a 200-year-old futures brokerage, filed for bankruptcy protection on Monday, the first to go bust in the current European debt crisis.

It owns US$6.3 billions of Italian, Spanish, Belgian, Portuguese and Irish debt. Its stock price plunged 60% last week.




George Soros on the proposed European Plan to fix its debt problems.

"Unfortunately it is not the last crisis because the fundamental issues have not been settled. It is clear that the amount of debts that Greece has accumulated and is accumulating is untenable and the country is effectively insolvent."



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