Contagion risks run high in Greek vote
Published: June 17, 2012 / Author: Ben Rooney
The following is and excerpt from a CNN Money article that quotes Finance Professor Jeff Bergstrand about Europe’s financial trouble spreading to Italy. To read the entire article visit: Contagion risks run high in Greek vote.
The cloud of uncertainty hanging over Greece is unlikely to lift following Sunday’s election, which means the risk of contagion will continue to threaten global financial markets.
Greek voters returned to the polls Sunday, after last month’s election ended in stalemate, and the outcome is anyone’s guess.
The country’s economy is in deep decline, ravaged by debt and recession. And its leaders face a series of crucial and difficult decisions.
The spread of financial turmoil to Italy is particularly worrisome. Italy is the third largest economy in the eurozone and its government bond market is estimated at one trillion euros.
“The biggest concern is contagion spreading to Italy,” said Jeffrey Bergstrand, a finance professor at the University of Notre Dame.