Wall Street Hit By Uncertain Eurozone

Wall Street has re-shifted sharply downward, while the operators were informed by a dispatch only after an extraordinary cabinet meeting, Papandreou confirmed his proposed referendum and still hoped obtain a vote of confidence of the Greek Parliament.

A high-risk gamble was considered with extreme severity by the markets as the “majority” which he believes may have already no longer exist. The latest rumors from Athens, at least three members of the ruling coalition could defection by Friday (confidence vote) instead of 153 votes, the first Greek Minister would have no more than 150 votes out of 300, an absolutely no flexibility.

Faced with the risk of Greece government by private 72H, which almost automatically lead to a failure (failure of the Brussels Agreement, the risk of contagion from the debt crisis in Italy).

It is almost certain that the IMF, Merkel, Sarkozy will try to dissuade Mr Papandreou to carry out its proposed referendum but the statement released tonight shows that he does not intend to backtrack and assume by advance the democratic rules that can lead to a resignation on the eve of ‘G-20′ (which would be a parting gift that the summit participants would turn to Cannes volntiers).

Wall Street tries to take stock of the enormous uncertainties facing the euro zone and this results in a surge in the VIX from 18% to 35.25 (a score of 25 against 48 hours earlier).