A New Greek Election Looks Guaranteed, And Greek Stocks Are Getting Destroyed

seneca, greek tragedy

Photo: Wikimedia Commons

Just to recap what’s going on:Last Sunday in the Greek election, the two main parties saw their support collapse, with seats going to a wide variety of parties, many of whom are opposed to the bailouts and even Eurozone membership.

Since that day, the parties have desperately tried to form a coalition government, but they have been unable to cobble together a combination.

A failure to form a government would mean brand new elections next month.

It looks like that’s going to happen.

The latest headlines from Greece suggest that the various parties still can’t come up with anything and that there will be elections in June… probably June 17.

This sets up Greece for the mother of all games of chicken, as it’s likely that the anti-bailout, left-wing SYRIZAT party will be the big winner. They say they’ll refuse to go along with the current austerity position, leaving the rest of the Eurozone in a bind whereby they either renegotiate, or let a member (perhaps) leave the currency, opening up a box of worms.

Yesterday, there was a glimmer of hope that this outcome could be avoided, and the Athens stock market soared.

Today it’s getting hammered again, losing 3%.

Click here to see why Greece is headed for chaos >

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