Commentary on Euro crisis

Ambrose Evans-Pritchard Explains How Greece Just Destroyed The EFSF

Business Insider,

2 November, 2011

So the referendum on Greek reforms is probably not happening, but don't assume that the the genie can be put back in the bottle.

The whole thing was based on confidence, and now that's destroyed.

Ambrose Evans-Pritchard  hits the nail on the head.

The markets cannot wait three months to find out the result, and nor is China going to lend much money to the EFSF bail-out fund until this is cleared up. The whole edifice is already at risk of crumbling. Société Générale is down 15pc this morning. The FTSE MIB index in Milan has crashed 7pc. Italian bond spreads have jumped to 450 basis points.  Unless the European Central Bank step in very soon and on a massive scale to shore up Italy, the game is up. We will have a spectacular smash-up.

The Euro bailout plan for Greece

This Radio new Zealand interview does a pretty good job at explaining the current situation in Europe - and why the Greek situation is likely to spread to Italy and Portugal

‘Charles Wyplosz is professor of economics at the Graduate Institute in Geneva and specialises in monetary integration, monetary policy and financial crisis.

From RT

Greek bailout referendum to launch euro ‘endgame’