Confirming the fears that resulted after the Greek elections and was followed with a 7% decline in Greek stocks, Antonis Samaras, the President of the New Democracy Party who got the most votes is saying he is unable to form a coalition government with the other party leaders. He is giving back his mandate to the President who will now give the Syriza party (otherwise known as the Coalition of the Radical Left Party), the number two vote getter, a chance to form a new government. This party is against the bailout terms as are all the other parties except New Democracy and Pasok. Unable to create a new government, Samaras is quoted on BN as saying “renegotiation of bailout terms now accepted by all.” The question for the markets, which is partly being answered today with a rally well off last nights lows, is whether Greece can still be contained to Greece and whether they leave the euro or not. I believe it’s all about Spain and Italy and the rally in their equity markets today and little change in bond prices says they at least are only focused on the travails of themselves and Greece saying screw you to the EU possibly soon is Greece’s problem, not a broader one.

Category: MacroNotes

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One Response to “What’s next in Greece and does it matter?”

  1. blackjaquekerouac says:

    again..THIS IS NOT COMPLICATED! Greeks DO NOT PAY THEIR TAXES. Now that we have the collapse of Ireland and Portugal…THEY DON’T PAY THEIR TAXES EITHER. Next stop: THE SPANISH NOT PAYING THEIR TAXES. This is an ENTIRELY RATIONAL RESPONSE to these policies. They haven’t occurred in the USA because USA Inc. is the Tax Collector In Chief for the Federal and State Government. I personally believe that USA Inc. should NOT collect income taxes for State and Federal Governments…nor be forced to even divulge the pay or employment status of their employees save for contributions to the Social Security and Medicare “trust funds.” This is GOVERNMENT’S job…not the job of business. I also believe all property taxes should be invalidated at every level of Government. The fact of the matter is the folks with all this money cannot be trust with a dime of it anymore…and the Faustian bargain made by USA Inc under Reagan needs to be declared NULL AND VOID. “The business of America is business” and intrusions of Government into the personal and private lives of the American people have become so severe and indeed reckless that it is fast becoming impossible for business to pay its owns bills…let alone the government ones.