As if the world didn’t have enough to be worried about (ISIS, Ebola, slowing China, Ukraine, slowing Germany, Fed tightening, etc.) now look what’s back: Greece. And in a big way.
The stock market is down over 9% on Wednesday, which is about as big as crashes come.
And the banks are getting absolutely smashed.
Greek banks yikes today. NBG -13%, Piraeus -14%, Alpha -14%, Eurobank -20%.
— Charles Forelle (@charlesforelle) October 15, 2014
Greece, which had been calm for a while, is now being wracked by two separate, but related things.
One is the rise in the political popularity of left-winger Alexis Tsipras, the leader of the SYRIZA party, who if he ever got elected to power, would take a much more confrontational stance with the rest of the eurozone with regards to austerity.
Meanwhile, there’s a rift growing between the current Greek government and the rest of the EU as Greece is keen to exit its bailout program. The EU is not so sure.
So now the Greek market is getting crushed.
Here’s the chart showing the nosedive. And this is before today’s move.
And it’s not just stocks.
Here’s the deteriorating bond situation.