Much fun from Athens as the country’s stock market slumps by as much as 15% during the day over calls for a new election to be held. As we all know Greece is in the economic equivalent of Dean Wormer’s double secret probation and is being propped up by massive loans from the EU/ECB/IMF IMF troika, plus the massive haircut that was applied to the country’s bond investors. It’s also true that the country’s economy has plummeted, the shrinkage being like some horror story from the Great Depression. And now we get to add a bit of politics to make it all even more fun.
“The combination of very large electoral uncertainty and the lack of an official financing backstop would release a meaningful period of uncertainty for the sovereign,” analyst George Saravelos said in a blog post late Monday.