Greece Votes to Bail on the Bailout?
posted at 9:23 pm on May 6, 2012 by Mike Rathbone
I’m sure Ed will comment on this, but because I have no girlfriend and a meager social life, I can keep abreast of current world events (when I’m not watching NCIS reruns). It appears that Greece held its parliamentary election and according to exit polls, the two pro-austerity parties in the coalition government have suffered major reversals at the polls. Needless to say, this has the potential to have major ramifications, not just for Greece, but Europe and possibly America as well. If the pro-austerity parties can’t form a government, then all bets are off.
Greece’s continued access to bailout funds from the IMF, EU, and European Central Bank, could be in danger, if the austerity measures currently in place in Greece do not continue. As of right now (7:55 CST on May 6th), the Nikkei is down over 2% on the news of the election results. Needless to say, if the Eurozone starts to feel rumbles due to Greek instability, how long before any of that instability spreads to the U.S.?
As I’m sure many of you are aware, the current economic situation in the United States, is far from peachy. It probably wouldn’t take a lot to knock the U.S. back into recession. If I’m at the White House, I would probably start taking some Tums right about now. President Bush still tends to get more blame for our economic condition than president Obama, but if we enter a new recession, how long do you think those numbers will remain that way?
At least the White House can always look at the bright side, if a recession hits, gas prices will drop… probably.