The heavily beleaguered Greece took a step closer to a devastating exit from the Eurozone as it’s leaders still struggle to form a government. For the first time, European central bankers have been openly discussing the possibility of Greece leaving the Euro.
Germany’s top banker, Jens Weidmann, said it was up to the Greeks to make a decision, but if they failed to keep to their bailout commitments, then Greece would receive no further aid. His Irish Republic counterpart Patrick Honohan, said a Greek departure from the Euro would be damaging but not essentially fatal to the single currency. Meanwhile, Per Jansson, deputy head of Sweden’s central bank, was quoted by Bloomberg on Friday as saying that central bankers across Europe had started to discuss the possible notion of a Greek exit from the 17 member stated eurozone and how the consequences shall be handled.
Greece is set to make a final attempt at forming a government today (Sunday) but if no new government is formed then a new election will be required, with opinion polls suggesting Syriza – a leftist, anti-bailout party – will gain the most. Syriza has run on out rightly rejecting the terms of the latest EC- EU-IMF bailout, which requires strict austerity measures in return for 130 billion euros worth of loans.
The events in Greece should be closely followed as they markets on edge and the events of which will have significant impact upon the markets when they open later tonight. Also to be followed is the stocks situation in the US – U.S. stocks finished mostly in negative territory at the end of the week, dropping on reports that JP Morgan lost $2 billion in a failed trading strategy The Dow Jones Industrial Average closed down 0.27% on Friday, the S&P 500 index was down 0.34% while the Nasdaq Composite index finished up 0.01%.
* * * * * * * * * *
Disclaimer: The opinions expressed in this article are not necessarily those of OptionsClick, blog.optionsclick.com, OptionsClick.com or any of its staff. The contents of this article are in no way intended to be advice or any other form of counsel for any trader of binary options or any other investor. Please be advised: Investing of any kind always carries a relative risk. As with any market trading, it is always possible to lose your investment. Always be sure to do your own research, seek professional advice, and make your own, well-educated decisions when it comes to financial investments.