Monday Market Mayhem – Greece is the Word, Again

The Anti-Austerity Party won in Greece yesterday .  What it means for the markets is hard to say on day one of the new Government but it's not looking good for the people who Greece still owe over 300Bn Euros to.  As you can see from this chart, that's 170% of their GDP and, frankly, its unpayable and it's ridiculous to pretend otherwise.  Yet, for the past 6 years, instead of helping Greece out by forgiving or refinancing the debt at low rates, the EU has lent them more money in exchange for ramming harsh austerity measures down their throats . What a shocker that 6 years of bottowing another $130Bn without using any of it to boost the economy (cutting back all stimulus spending, in fact) did not, in fact, lead to an economic recovery in which the debt was paid off.  In fact, the debt is 70% worse and that doesn't go away and the now the lender (the ECB and their Bankster Buddies) want MORE austerity to make sure they get paid first. Well BS to that says any rational person and BS said Greece this weekend as they voted in Alexis Tsipras and his Syriza Party, who are now just 2 seats shy of a full majority in Parliament.  Already though, Tsipras has calmed the markets by calling for gradual negotiations with the EU , not an outright revolt:   “There will neither be a catastrophic clash nor will continued kowtowing be accepted,” Tsipras, 40, told crowds of cheering supporters in central Athens late Sunday. “We are fully aware that the Greek people haven’t given us carte blanche but a mandate for national revival.”   Of course, he hasn't actually been sworn in yet.  The Syriza party is a Socialist, almost Marxist party – they believe in taxing the rich and raising minimum wages – and not in the wimpy way the US Democrats believe in it – it's going to be a very interesting couple of weeks.       IN PROGRESS        

The Anti-Austerity Party won in Greece yesterday

What it means for the markets is hard to say on day one of the new Government but it's not looking good for the people who Greece still owe over 300Bn Euros to.  As you can see from this chart, that's 170% of their GDP and, frankly, its unpayable and it's ridiculous to pretend otherwise.  Yet, for the past 6 years, instead of helping Greece out by forgiving or refinancing the debt at low rates, the EU has lent them more money in exchange for ramming harsh austerity measures down their throats.

What a shocker that 6 years of bottowing another $130Bn without using any of it to boost the economy (cutting back all stimulus spending, in fact) did not, in fact, lead to an economic recovery in which the debt was paid off.  In fact, the debt is 70% worse and that doesn't go away and the now the lender (the ECB and their Bankster Buddies) want MORE austerity to make sure they get paid first.

Well BS to that says any rational person and BS said Greece this weekend as they voted in Alexis Tsipras and his Syriza Party, who are now just 2 seats shy of a full majority in Parliament.  Already though, Tsipras has calmed the markets by calling for gradual negotiations with the EU, not an outright revolt:  

“There will neither be a catastrophic clash nor will continued kowtowing be accepted,” Tsipras, 40, told crowds of cheering supporters in central Athens late Sunday. “We are fully aware that the Greek people haven’t given us carte blanche but a mandate for national revival.” 

Of course, he hasn't actually been sworn in yet.  The Syriza party is a Socialist, almost Marxist party – they believe in taxing the rich and raising minimum wages – and not in the wimpy way the US Democrats believe in it – it's going to be a very interesting couple of weeks.  

 

 

IN PROGRESS

 

 

 

 

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