Stocks surge over eurozone rescue plan

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“Nobody really wants to (submit to structural changes), because they lose control over their fiscal policy, they lose sovereignty,” Moody’s chief economist Mark Zandi explained. “So it could be that they wait and wait and wait, and investors get concerned that they won’t do it and start selling bonds.”

Even with the eurozone intact, bond sell-offs and bank runs in Greece, Spain or Italy could still spark another global recession, Mr. Zandi said, potentially impacting the American presidential election.

Mr. Gault agreed.

“The rest of the world will be engulfed in this crisis,” he said. “It would show up in the financial markets immediately, so if people see stock markets falling around the world, that’s going to scare them. It would definitely influence the mood and make people more pessimistic about the future.”

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