Grexit Update

Photo courtesy of Politco.

With word coming down that New Democracy has taken a plurality of votes that will allow it to form a government that presumably will enforce the austerity ridden bailout force fed by the Germans and the IMF.

If Europeans want to keep Greece in the Eurozone then what needs to happen is more, not less, unity and integration of debt and banking on a broad basis. For this to be pulled off, investors and citizens need to be reassured that there is no difference between having their euros in a Greek bank or a German or French bank. The flight of capital away from Greek investments and banks would bring the whole economy fully over the precipice it seems to have been sitting on.

Presumably, if the new government is formed, and they don’t collapse into a firey ball within days of forming, Greece could be saved. But the larger Eurozone needs corrective action too. And quickly.