Greece Threatens To Derail The Stock Rally
February 12, 2012 by staff
Greece Threatens To Derail The Stock Rally, After a week dominated by hopes and fears about Greece, investors will continue to follow the plight of the nation at the center of Europe’s debt crisis as it enters another crucial week.
But investors will also have a full slate of data on the U.S. economy to sift through next week, which could vie with jitters about a default by debt-stricken Greece.
Stocks sank Friday after euro zone finance ministers postponed a decision on additional bailout funds for Greece, saying the government’s latest austerity program does not go far enough.
The ministers set out three additional conditions for Greece before they will sign off on a second bailout worth €130 billion. Assuming Greece meets the new demands, the ministers could approve the program when they meet Wednesday.
The first test comes Sunday, when the Greek Parliament is expected to vote on the politically unpopular reform package.
In addition to parliamentary approval, Greece needs to identify an additional €325 million in spending cuts. And political leaders must provide binding assurances that they will follow through on the reforms even after elections are held later this year.
0:00 / 4:18 Goldman’s big 2012 calls
Meanwhile, anti-austerity demonstrations continued over the weekend in Athens.
The concern is that Greece will default on a €14.5 billion bond redemption in March if the government cannot secure additional bailout funds.
Please feel free to send if you have any questions regarding this post , you can contact on
Disclaimer: The views expressed on this site are that of the authors and not necessarily that of U.S.S.POST.