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You Can’t Have Your Cake and Eat it Too

The Greek electorate says “no” to the Eurozone’s bailout proposal.

With the results of Greece’s decisive referendum emerging last night thousands celebrated on the streets on hearing that 61.3% of the votes supported Prime Minister Alexis Tsipras’ recommendation to vote “no” to the latest Eurozone proposal for resolving Greece’s current financial crisis.

The results were followed by the resignation of controversial Greek Finance Minister Yanis Varoufakis, who often clashed with creditors, in a move that will hopefully make this week’s negotiations easier for Tsipras.

But European officials warned that the No vote could see the country ejected from the eurozone and the euro fell across the board in Asian markets on Monday.

With earlier expectations that the Greek people would vote in favor of the resolution and against Tsipras dashed, global investors appear to be bracing themselves for a negative reaction in the markets on the first day of post-referendum trading.

Expectations are now for added volatility in the markets as investors weigh the complexities and implications of the vote on Greece’s continued membership in the Eurozone, its access to funding, what obstacles exist to Greece meriting another bailout proposal, and the potential for collateral damage to confidence in the Eurozone and its single currency.
 

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