Be careful what you wish for

The people of Greece have spoken : arguably the founders of democracy, Greece has now voted and placed in power the anti-austerity party : Syriza.  After years of austerity cuts placed on them by Troika in return for a bailout package from the 2008 credit crisis they have decided that with various allegations of corruption from the ruling elite in the form of avoidance of taxes and the general humiliation of the bailout package- which was interpreted to penalise the poor over the wealthy have been the main catalysts for the in extreme change in politics: For an idea of basis, as recently as 2008, Syriza had just 5% of the vote.  What does the future hold? Unfortunately, it still leaves Greece with 2 very difficult paths to choose from. Does it remove itself for the Euro entirely, return to the Drachma and renege on any obligations to pay any of the bailout package it has received or can it use it majority government to renegotiate more favourable terms using the virtue of keeping the structure of the Euro alive as a bargaining chip with the rest of the Eurozone?  But what do the people of Greece actually want? They have voted for a party, which has no previous experience on running a country: especially one which economics have never been optimum: remember previously to the 2008 credit crisis the public sector in Greece was already haemorrhaging money on police like 13 month pay check per 12 month calendar year and occupation hazards pay: which saw the likes of hair dressers receive extra state hand outs for using scissors. Should the unthinkable happen with Greece leaving the Euro: voluntary or involuntary then it’s likely they will find it extraordinarily hard to borrow money from the market – arguably the austerity conditions placed on them by Troika are harsh: but also bear in mind that Ireland seems to be coping, and some would say even prospering, under the bailout package. Be careful what you wish for: because you just might get it

 

Jordan Hiscott,
Senior Trader  

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