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As the weekend approached, the outcome
of Sunday’s election in Greece was being touted by the news media as
“a cliffhanger,” a “Lehman moment, and “too close to
call.” But does anyone actually believe the ultimate outcome is in
doubt? The drumbeat reminds us of the sensationalized news coverage that
froths up every time America’s do-nothing Congress approaches a budget
deadline. Greeks have been rioting in the streets for the better part of a
year, and so it seems likely that even if they vote to stay in the EU, they
will struggle in vain to fulfill the terms of future bailouts. Under the
circumstances, political sentiment will continue to shift left, ultimately
giving the radical Syriza party effective control
of the nation’s political and economic machinery. A Marxist takeover of
a deadbeat nation that owes everyone would be bad news for Europe, but
it is predictable that stock markets around the world will turn riotously
bullish no matter what the outcome. Bad new is good
news on Wall Street these days, and good news
— i.e., a vote on Sunday to retain the status quo — would be even
better. Our hunch is that even if a military junta were to seize control of
Greece’s government, it wouldn’t matter one iota to the
speculators who goose, diddle, jockey, juggle and criminally rig the markets.
Stocks will soar on Monday regardless, and the op-ed pages will nod
approvingly, noting that now, at least, the trains will run on time. Or some
such.
Lunatic Fringe
Keep in mind that the champion of
Greek’s radical left, Syriza, really does
represent the lunatic fringe. Their idea of fixing the country’s
economy would start by having the bankrupt government hire 150,000 new
employees instead of eliminating 150,000, as budget cutters, including some
socialists, have proposed. Meanwhile, among the 17 nations in the Euro
so-called Union, Germany in particular has reason to be scared to death while
Wall Street parties. The Germans have plenty of skin in the game, after all,
and if Greece were someday to walk away from the table as seems likely,
inspiring like-minded Spaniards and Italians to follow suit, the financial
consequences for Germany would be dire. For now, though, a tight-fisted
Merkel is being made to walk the plank, and you can hardly blame her for
taking mincing steps. She has the support of German voters to buck her up,
but Germany could eventually find itself flanked on all sides by rioters
looking for a scapegoat. (And wouldn’t that be ironic, given
that there are so few Jews left in German banking circles.).
We await the results of this
weekend’s supposed “cliffhanger” much as we might the
arrival of the #17 bus. Leftist radicals are destined to take over sooner or
later, and there’s not much Germany or anyone else can do about it. In the meantime,
party on, Wall Street!
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