When’s the last time markets reacted positively to anything happening in Greece?
Last week, just 10 days after Greek voters voted against a resolution that would have required stiffer austerity measures in return for a third Eurozone bailout, the Greek Parliament voted 229 to 64 with six abstentions in favor of harsher austerity measures than would have been required if voters approved the resolution.
As The Economist put it, “Grief, psychiatrists say, has many stages, from denial to acceptance; and Greece seems to have raced through them all.”
So Greece needs psychiatric help. That should have been clear years ago. These are the folks who elected Alexis Tsipras of the wacky extreme-left Syriza Party as their prime minster.
Tsipras quickly found that his socialist machismo wasn’t very effective, given that his country needs billions of euros just to survive. So maybe it’s not surprising that he and the Greek Parliament caved so quickly.
Not everyone was pleased. Fellow Syrizan Zoi Konstantopoulou, the parliamentary speaker, called it a “very black day for democracy in Europe.” Since when does a socialist worry about democracy?
But enough about Greece. Which country should we be worried about? (more…)