Stock Market Tumbles After Greek Government Decision On Referendum

The Greek government decided to allow its citizens to vote on a referendum that would enable its citizens to accept or reject the austerity measures required by institutions that are involved in rescuing Greece from a default on its debt. The public has not been happy with the austerity measures and its not clear how the government will word the referendum. Citizens in Greece would vote to remain in the eurozone if the referendum is framed on that dimension. If it is framed about the specific aspects of the austerity package imposed upon Greece it may not pass.

Changes in Greek situation show how volatile the whole situation in Europe is. Its like a four dimensional chess game that increases the uncertainty of any outcome in Europe. Investors have responded to the uncertainty.