Investors brace for dramatic new stage in Europe

[Elsha]

Investors have begun preparing for a dramatic new stage in the European debt crisis ahead of a weekend Greek vote that could help determine the future of the euro zone.

In a sign of the heightened tension, global markets were boosted late in the week on reports that central bankers stand ready to act in the case of a credit crunch following the Greek elections.

Edward Hugh, an independent economist and well-known blogger based in Barcelona, said investors are beginning to make calls as to whether the euro will disintegrate or ultimately be saved. �I think investors are trying to cover themselves both ways,� said Hugh. �If you buy German [credit-default swaps], it�s win-win.�