After weeks of strained negotiations, pleading, insults and hammering of EU members, a deal was struck on Eurozone finance and Greece in particular. Then this morning, the Greek Prime Minister George Papandreou spun the chamber and pointed the gun at the EU and Greece by announcing that the Greek people will decide on whether to accept the bailout wrung out by the big players in Brussels.
First, I am not so sure that the agreements reached in Brussels were so great in the first place - but they were something. Second, politicians fall back on referendums when they can't or won't lead (witness the mess of California, a referendum happy state where the politicos run from the responsibilities they are given in elections). Third, this move was manifestly political to avoid early elections.
The referendum announcement sent the markets down. Way down. The Greek public will likely vote against the deal. This is not going to end well.