As posted earlier the Good news of Euro zone which took Euro above 1.40 seems to have short lived . To surprise every one Greece PM has announced that he will come out with a referendum to take a views of its citizen about the Greece Bail out package finalised recently. Greek Prime Minister George Papandreou's announcement on Monday that he will put Greece's bail-out to a referendum immediately cast doubt on the euro zone's plan to hand Athens 130 billion euros and arrange a 50-percent write-down on its huge debt.
It raised the possibility of a disorderly default on its debt if Greeks vote against the plan.
But more broadly it also threw into chaos the euro zone's wider attempts to stop the debt crisis spreading to more significant economies such as Italy.
Attempts to get countries such as China and Brazil to fund an enhanced euro zone rescue fund, for example, will have hit a major barrier, given that it is not clear that the euro zone's grand compromise agreed last week will stand. The referendum -- details of which have not yet been announced -- is not expected immediately , which means uncertainty is likely to continue throughout November and December.
The stock market all over the World has taken this news very very negatively. Till this posting Euro has come down to 1.3698
Banking stocks are likely move down in the coming days .
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