Will Last Ditch Efforts Stave off Nationalization in Greece?

What economic watchers and investors need to consider is that this latest move is far from a true deal. As of Wednesday morning, Greece’s weekend referendum was still scheduled. Any deal in Greece also will not structurally fix the nation’s structural economic problems. Most likely, a deal in Greece would just kick the can down the road by another two years.

All in all, nationalization of Greek banks still remains a risk. All this is bad for investors and is bad for Greece itself.

National Bank of Greece S.A. (NYSE: NBG) is the key trading sentiment barometer for Greece today. Its American depositary shares were last seen up 10.5% at $1.16 on Wednesday morning, after closing at $1.05 on Tuesday. NBG’s 52-week range is $0.88 to $3.90, and it trades nearly 14 million on average now. NBG’s volume in New York has been only under that daily average once in the past two weeks.

The Global X FTSE Greece 20 ETF (NYSEMKT: GREK) was up almost 10.9% at $11.16 early Wednesday, after closing at $10.06 on Tuesday. The ETF has a 52-week range of $9.42 to $23.48. Investors do still need to consider for a moment that this exchange traded fund could lose its status as an official ETF if Greek markets remain closed for long.

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Greece remains a fluid situation. The path is not yet set, and unfortunately its problems ahead remain a serious risk whether or not a deal is struck to remain in the euro.

This news flow could expand or go the other way very fast. Stay tuned.