Few people expected Europe's sovereign debt crisis to be permanently solved by last week's summit. But few people expected that this is what the next problem might look like. Greek Prime Minister Papandreou has called a referendum on the bailout for January. If it fails, we're back to the starting gate. Actually, we'll be way behind the starting gate -- a lot worse off than if the crisis were addressed and solved a year ago.
Tyler Cowen doesn't think that it'll even get held -- that the deal will fall apart beforehand. Even if it passes there will be lots of uncertainty and guessing between now and then. And that uncertainty will lead to more pressure on Italy and Spain. A selection of reactions this morning:
Peter Boockvar:
Tyler Cowen:
