Greek debt to dominate week

Not a good time to be in the Equity markets as the mood is definitely Risk Off

The gravity of the Greek debt scenario and the possible consequences to the Eurozone, is not lost on the markets and will not go away until the Greek parliament vote the austerity package in on June 29th, that will allow release of the bail out funds they need so badly.

However, if parliament sides with the Greek people, who have been demonstating against cuts and the massive privatisation package that also needs to happen, they must surely default on Bond repayment obligations that are coming at them very quickly now.

Even after Greece receives the rescue money, it it unlikely that the markets will assume everything is fine as far as Greece is concerned. Some high profile analysts think it is only a matter of time before Greece defaults on it's obligations.

There is a train of thought that may well gather support, centred around letting Greece drop out of the Eurozone and regrouping. This might be a good thing in the longer term, though the short term chaotic consequences would be difficult to estimate and would certainly not aid global recovery.

Neither would it help those countries that are also in dire financial difficulties, such as Ireland and Portugal and to a lesser degree Spain and the story doesn't end there.