The recent happenings in Greece—perceived inability of Greece to service sovereign debt, falling credit rating and the resulting rise in interest rates—are so real and hard hitting that the European Union (EU) should not get simply carried away by the mere announcement of the rescue plan: creation of a colossal rescue fund of €750 bn, amounting to around 8.2% of the Zone's GDP, to protect its currency in the form of €60 bn of EU backed bonds, €440 bn fund guaranteed by eurozone countries, and €250 bn of International Monetary Fund money; for the tragedy of government-bond markets is now spreading to banking system and is indeed on its way to inflict global credit markets. During the month, the euro has lost around 7% against the dollar.

Even after the announcement of an exclusive rescue package of €110 bn by the European Union and IMF and the Greeks announcing an austerity package as suggested by the IMF to contain fiscal deficit, Zeus does not appear to be pleased to quell the storm. In the meanwhile, global stock markets have turned highly volatile. The unilateral announcement of Germany on 18^th instant banning naked short-sales under government bonds had tanked the global stock market indices: BSE Sensex tumbled down by 467.27 points, Japan's Nikkei lost 55.80 points, Hong Kong's Hang Seng lost 365.96 points, UK's FTSE 100 was down by 107.24 points, and Dow Jones was down by 66.58 points.

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