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Greek election results: what next?
Relief over the election result in Greece has been short lived. We may have averted financial disaster but fund managers and commentators all agree that tough decisions have to be taken.
Has enough been done to keep Greece in the eurozone? Leading market analysts and bloggers say there is far more work to be done from now.
Here we round up the views of some of the more notable commentators in order to gauge sentiment following New Democracy’s narrow victory in the Greek polls.
Paul Krugman, ‘And Then What?’, NY Times
In a short reaction piece, the prolific commentator thinks this is nowhere near the end game and could actually end up worse for Greek politics in the long-run.
‘Establishment types should actually be dismayed by this outcome: if current policies fail completely, which seems almost a given, and Greece exits the euro anyway, which seems highly likely, the entire Greek centre will end up discredited; better, in a way, to be able to blame the radicals.’
Mark Grant, ‘And Now – Let’s Play Chicken’, Zero Hedge
Grant, author of Out of the Box and Onto Wall Street, explains how Greece is ‘in limbo once again’ and how coalition wrangling still poses a major stumbling block internally. This is while Europe holds it breath hoping it can sort itself.
‘The next game of chicken is not only will Germany/the EU back up from their position but will they give Greece more money because if they don't give the country and the banks more money they both will default.’
‘So it is no government in Greece for the moment, playing chicken over the bailout terms, playing chicken over new money for Greece as their economy continues to deteriorate and as they amount they owe now, much less any new money, cannot be paid back under any scenario that anyone can concoct.’
‘The headlines may well drive the markets' reaction briefly but "watch out below" will be what takes hold as it must because that assumption is based upon facts and not hype.’
Kiron Sakar, ‘Greek “final exit polls” suggest a New Democracy/PASOK coalition’, Big Picture Blog
Penning a lengthy analysis piece on Barry Ritholtz’s market blog, Sakar touches on a few major macro events before dissecting the scramble for a coalition in the Hellenic Republic.
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What others are saying
- Paul Krugman: And Then What?
- Zero Hedge: And Now - Let's Play Chicken
- Big Picture Blog: Greek exit polls...
- Forbes: Investors, take a moment to cheer pro-bailout party's victory
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