BBC: Markets dive in reaction to unfortunate outbreak of democracy in Greece

US and European markets have fallen following Monday’s announcement of a Greek referendum on the latest aid package to solve its debt crisis.

Eurozone leaders agreed a 50% debt write-off for Greece last week as well as strengthening Europe’s bailout fund.

But the Greek move has cast doubt on whether the deal can go ahead.

New York’s Dow Jones ended the day 2.5% lower, after a mid-afternoon rally on hope that Greek MPs may block the referendum proved short-lived.

One of Mr Papandreou’s MPs, Milena Apostolaki, resigned from the ruling Pasok parliamentary group on Tuesday, leaving the government with a two-seat majority in parliament.

Six other party members have called for Mr Papandreou to resign, according to the state news agency.

There are doubts whether the government will last long enough to hold the referendum, pencilled in for January.

A confidence vote is due to take place in the Greek parliament on Friday.

via bbc.co.uk

Let’s not have any illusions here. It’s hard to think that this represents anything more than the form of democracy. The substance is going to have a much harder time asserting itself.

The Greeks might want to brace themselves, because International Finance is gonna open a big-ass can of Shock Doctrine on them. But at least supranational corporatism’s inherent incompatibility with popular sovereignty will be revealed.

Αλληλεγγύη.

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