The farce is underway as the newest juicy rumor that hit the press is that the Greek Prime Minister will offer to resign in the next 30 minutes. According to BBC, Pap "will meet the Greek President Karolos Papoulios after the emergency cabinet meting finishes". The new coalition government will supposedly have "former Greek central banker Lucas Papademos at the helm". This comes after the surprising decision of Papandreou to call a referendum on the European Bailout Plan.
What next ?
Lower and lower political support is due for the Greek Prime Minister (at least still for 30 minutes), as more and more ministers from his cabinet declared that they would not support el-lider maximo's plan to call a referendum. A referendum is out of place because the Greek people are very unlikely to voluntarily vote for the further austerity measures that the European Bailout entails. With his parliamentary majority standing at 152 out of 300, the chances that this ends in disaster are large.
Most likely is that the Greece will get a cold shower from the European Union officials which will ditch the deeply unpopular G-pap with a fresh pro-euro Prime Minister. Chances are that the Bailout plan is enforced and the contagion will switch focus to more fertile grounds (Italy and Spain).
Sources: BBC, Zerohedge