Monday, September 12, 2011

Markets sink on question: Will Greece default?

The global sell-off that began Friday continued as Asian markets opened Monday, despite weekend assurances that a Greek debt deal was imminent.

The euro was trading at its lowest level against the yen since 2001, as Bloomberg reported Germany was preparing for a possible default by Greece.

"We are watching Greece, and only Greece," said Satoshi Tate, a senior dealer at Mizuho Corporate Bank told the Wall Street Journal. "Conditions are getting very serious and everyone is worried how the issue will unfold."

Senior European officials scrambled to reassure financial markets with a Sunday announcement from Athens on a plan to skirt debt payment default with a property tax increase.

"We have made the decision to give a battle to avoid a disaster - a disastrous bankruptcy for the country and the citizen," Greek Prime Minister George Papandreou said Saturday. more