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European markets dropped again...to a 3-month low on Greek debt worries. Japan's market also fell.
PM George Papandreou says he will reshuffle his cabinet and seek a confidence vote.
His government had only a 4 vote majority...and 2 party members have defected.
FM George Papaconstantinou is now the target for protestors and the conservatives...because of his austerity proposals.
The conservative party led by Antonis Samaras reportedly opposes spending cuts...and instead wants tax breaks and renegotiations with creditors.
The markets don't care who governs. They want agreement... so the IMF or somebody will pay the next tranche. They simply fear...contagion.
"It is the contagion effect, which is unnerving markets. It is not just about Greece, but about who is the next," said the head of investment dealing at a fund company that manages $80 billion. "We need a proper long-term solution, not a plaster."
The WSJ quotes an observer at MF Global.
It goes something like: "...the guys with the cigars don't like rioting. It makes them uncomfortable...and says to them...that it is time to head for the sidelines."
AP 1:10 Video Report
http://www.youtube.com/watch?v=5J5KEc7AWeQ&feature=player_embedded
