Greece: Now The Fun Begins
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2012-06-17 19:45 by Karl Denninger
in International Ignore this thread
Greece: Now The Fun Begins

It ain't over until the fat lady sings.....

Greek election winner Antonis Samaras begins his second bid in six weeks to form a coalition as euro-area finance chiefs pressured him to form a government that would keep bailout aid flowing.

European officials indicated a willingness to ease the terms of rescue loans as long as Greece, with just weeks of cash in the bank, re-commits to their austerity demands. The prospect that Samaras would lose to anti-bailout leader Alexis Tsipras rattled markets concerned that Greece may quit the 17-nation currency union. The result sent the euro higher.

Two problems immediately arise: PASOK hasn't committed to forming a coalition government, and Syriza has said "absolutely not."

“The Greek people expressed their will to stay anchored with the euro, remain an integral part of the euro zone and honor the country’s commitments,” Samaras told supporters in Athens yesterday after the election result. “There is no time for petty politics.”

The hell they did.  You didn't get 50%+ of the vote.  What you have, in fact, is more of a shift toward anti-bailout parties than you had in the last round.

This sounds like our government that had 300:1 sentiment against TARP but passed it anyway.  Of course we were too stupid to eject everyone who voted for it a few weeks later, so I can hardly say I'm surprised that since then our legislature has acted like we never said "no" in the first place!

Nonetheless the real problem has not been addressed -- the government cannot spend more than it takes in via taxation.  Nor can it in Spain, here, or anywhere else.

And yet not one of these governments has come to the people and told the truth in this regard.

Until they do there is no resolution and any attempt to claim that "the problem is resolved" (or at least "settled down") is a lie.