Friday 15 June 2012

It's here, the weekend when the Euro might start to disintegrate

On Sunday, the Greeks go to the polls to determine their place in Europe. A win for the left of Alexis Tsipras will mean they renege on their austerity commitments and head to Euro exit. A win for New Democracy means more of the same. It's for that reason that I, unusually, want the left to win. We need a game changer to sort out the Euromess. A Greek friends thinks the centre right will win, but I'm not so sure.

It's been a bad week for the Eurozone. The cack handed way in which they added capital to the Spanish banks by adding to Spain's debt has brought Spain to the brink. Yesterday their bond yields hit the unsustainable 7 percent. Now it's only a matter of time before the country's first bailout (as opposed to the bank bailout). It was such a stupid way to do it. The next target is now Italy, watch their yields rise over the next two weeks.

If there was ever an explanation for why we're in such a mess, the Spanish bank bailout was it. Just bloody dumb.

This weekend the endgame approacheth. We may be about to witness a very swift end to the badly conceived Euro project and we can put the Euro elites back in their box. But not before the people of Europe suffer terribly.

Squiffy.

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