Europe Is Ugly

European stocks as measured by the STOXX 50 closed down 3.74%. 

4 comments:

Anonymous said...

Do you think they will let Greece default?

Knowing the serious consequences?

Anonymous said...

The bailout has to be voted on correct? If the decision is NO then the markets really drop.

Tsachy Mishal said...

The Greeks are damned if they do and damned if they dont. They might be better off defaulting and starting over than living through a multi year recession in order to pay interest.

PJ said...

Yes, best thing would be for Greece to leave the Euro and negotiate with creditors over how many drachma they get per Euro of debt. That would be better for US/European taxpayers too. The bailouts will lead to the same endgame, but only after more losses have been racked up.