Greek problem overshadows worldwide stock markets
As the Greek economy hangs on the edge of oblivion there are serious concerns about the economies of other European countries. Yesterday's downgrade of the Greek national debt to junk status and a downgrade for the Portuguese government were not well received by investors. The yield on the Greek national debt has now burst through the 11% barrier, the highest ever figure since the Euro zone was created!
The Organisation for Economic Co-operation and Development has today voiced its concern about the lack of progress from the European Union and IMF joint venture to save the Greek economy. We have been promised funding will be made available as soon as possible but so far no agreement has been reached between the parties in question. Indeed the European Union has announced plans to hold an emergency meeting about the Greek debacle which has further spooked worldwide stock markets.
We have followed the Greek problem since day one and warned about the potential knock on effect to other European economies if the situation was not brought under control as soon as possible. We are now starting to see the formation of a nightmare scenario for the European Union and euro zone members.
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