Are Greek Fears Exaggerated?
"This brings all of the concerns about Europe back to the front burner." - Scott Brown, chief economist at Raymond James.
Today, world financial markets nosedived when Greece's prime minister announced that the European intervention plan to rescue Greece's economy would be put up to a national vote. Almost instantaneously, this catalyzed vast amounts of selling, showing the disgust of world financial markets to Greek politics.
Personally, I think the majority of the investment community is yelling "Chicken Little" and caricaturing doomsday scenarios when there is a good chance our pessimistic expectations of a Greek default, although strongly based and adequately reasoned, hinge on irrational fears. The worst factor of any crisis is the expectation, suspense, emotional pessimism, and the nailbiting, not the actual result.
But of course, time will tell.