Greece is a problem. With an economy smaller than California's, it could bring the banking world to its knees.

On Thursday of last week, everyone was celebrating the good news. The back of the European financial crisis had been broken. France and Germany had agreed to lead the way in bailing out the small country of Greece and Wall Street had its largest gains in 25 years.

Even Fox News Entertainer, Shep Smith was celebratory. That was Thursday.

Over the weekend, the news turned dark. Greece's Prime Minister decided to put the bailout issue up for a referendum vote, and the Stock Market in this country, lost 600 points over the course of the past two days. The Prime Minister's theory is this: if the people vote to approve the bailout, they will be more inclined to participate in the coming austerity program that awaits them. Problem: most observers believe the people will vote this bailout down putting the future of the Euro in doubt along with the financial stability of Italy, Spain and, of course, Greece.

Understand that if the Euro collapses -- which is where this seems to be going -- American investors will lose between 30 and 50 percent on their capital investments and the banking industry in most countries will take a huge nose dive. And Obama is busy trying to raise taxes, increase repressive regulations and turn this country into a socialist state. His timing is impeccable.

That is what is happening in the world of finance. A double dip recession? Last week I was thinking, "No chance." Now, as a layman observer, I am not so sure.

Update: I should have mentioned one very important element of this referendum vote . . . . . . . it will not happen until the end of December. This means the United States economy, inextricably tied to the European economy, the health of the euro and, consequently, the financial survival of Greece, has to suffer through an extended period of "not knowing" which, in turn, allows for things to get worse; you know what they say, "If you aren't growing, you're dying."