Tuesday, November 1, 2011

Has Papandreou Gone Rogue?

The Greek referendum on the bailout from the EU may not even occur.

It appears that Papandreou may have gone rogue and that he consulted no one in the EuroZone or in Greece about his call for a referendum.

Reuters is reporting that Greek Prime Minister George Papandreou had not even informed his Finance Minister, Evangelos Venizelos, he was going to announce a referendum on the latest EU aid deal, a Greek government official said on Tuesday.

"Venizelos had no idea about the referendum. All he knew about was the vote of confidence," a government official told Reuters on condition of anonymity. "He told Papandreou he should inform foreign partners and a letter was drafted in the early morning hours."

Further, political pressure from within Papandreou's PASOK party is mounting. An MP from that party resigned this morning, and then six MPs sent a letter to Papandreou calling on him to resign. That's taken his majority down to 152 MPs in a 300-member parliament, with six clearly in uproar.

No one in PASOK wants new elections that will probably compromise their majority.

Papandreou has called a meeting of cabinet ministers this afternoon, to discuss the referendum . The meeting could very well result in the referendum Papandreou proposed being killed .


  1. ...following on twitter,,,,but what's the news?

  2. The news is, you idiot, that there may not be a referendum, which means the stock market will reverse its decline.

  3. @Anon 10:20AM: Why do you need to insult others? :)

    But the news itself is amazing. Greece is better than the Twilight Zone ever was. It should be turned into a movie, song, book, etc. Nobody will ever believe that in the future. I'm having hard time believing it now.

  4. Referendum or no referendum means absolutely zilch. the big news is the Chinese refuse to be Eurozone suckers once again so the ESFS fund is DOA. The entire Euro bailout is coming undone and then on top of that, the impact of MF will start to creep in and the last thing I would do is buy equities when you will probably get them a lot cheaper in about two weeks. The short is anything European that depends on bank financing or for a broader market, oil based on the near recession PMI index out of China.

  5. "Greek Socialist legislator Hara Kefalidou said she opposes PM Papandreou’s plan for a referendum on bailout package, calls for a national caretaker govt with cross-party support, Dow Jones says"


    20 handles in S&P 500

    Thanks for the heads up Wenzel.