Asian stock markets have crashed in response to fears about a Greek default as has the Dow Jones but there are good reasons why markets are freaking out at the moment.
European leaders have tried to reassure investors, ruling out a Greek default but as Reuters reports, Greece is going to fall short of bailout expectations and will miss its deficit targets. Eurozone finance ministers have put off any further bailout and will meet again in November which means a default is still on the cards in a few weeks time.
Then we have Credit Suisse forecasting that Goldman Sachs is going to register a big quarterly loss with asset prices nose-diving and bad market conditions.
Add to that concerns that Franco Belgian financial group Dexia could be the next victim of the sovereign debt crisis, warnings from the incoming European Central Bank boss Mario Draghi that the Eurozone banks are cot cases with "funding problems", American airlines and Kodak teetering on the brink of bankruptcy and experts predicting that China is in for a hard landing.
All up, it's not a good time to be an investor. For now, stick to cash.
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