Friday, 17 June 2011

Greece teeters on edge of complete financial collapse


Greek riots

Business digest: Bond yields rise to 28 per cent as markets across the world rush to protect themselves

 
LAST UPDATED 9:45 AM, JUNE 16, 2011


I

nvestors believe that Greece is on the brink of insolvency, after more street riots and the collapse of the government caused the yield on two-year Greek bonds to soar to 28 per cent.

There are now strong fears that contagion will spread to the other eurozone countries that have received bail-outs, Portugal and Ireland. An emergency meeting of eurozone finance ministers ended without conclusion yesterday.

With pressure on the economically stronger countries in the eurozone growing, Germany has insisted that holders of the Greek bonds be forced to pay some of the costs of a new bail-out, now seen as all but inevitable.

In a sign that other markets were attempting to isolate any fall-out from a Greek collapse, the Dow Jones Industrial Average was down 180 points by midday yesterday in New York and the cost of West Texas crude had dropped by more than $2 a barrel.

Read a full report at the Guardian. 

Filed under: Greece, Greece debt crisis, Greece default, Eurozone






Posted by Britannia Radio at 11:32