The worsening Greek financial crisis became a global problem Monday with stocks around the world falling following a weekend of troublesome bailout negotiations.
The decline in global stocks came after Greek officials announced plans to close its banks and impose restrictions on cash withdrawals to try to prevent the current financial crisis from getting worse. The decision and news that the bailout negotiations faltered over the weekend caught investors around the globe off guard.
“Most people’s consensus forecast was for them to muddle through with some kind of a deal,” Kymberly Martin, the senior market strategist at the Bank of New Zealand, told The New York Times. “So it has taken people a little bit by surprise.”