Mohacsy's Safe Portfolio Member Forum

[morokoy]

Today the markets realized that it may become entirely impossible to form a government in Greece, even after another election.

In that case there will also not be the votes to continue with the bailout package. I think it is slowly sinking in what that could mean: the troika will no longer have anyone to negotiate with.

The IMF, EU,and ECB would see tens of billions each evaporate. Greece would become a pariah state and likely drop out of the euro, followed by either a radical leftist government taking power or a military coup.

Greece has become near ungovernable. Its infrastructure is crumbling, its jobless rate is over 20%, youth unemployment is 50%, and Greek administrative institutions are paralyzed and corrupt.

The empire is fraying at the edges - literally.

Greece may by itself not mean much, but it is the first modern industrialized post WW 2 welfare state to go completely bust. The signal alone should scare the bejeezuz out of market participants.

http://globaleconomicanalysis.blogspot.com/2012/05/tea-party-ousts-6-term-republican.html