Back
21 Aug 2015
Greek PM Tsipras resigns, unworthy of main headlines - Rabobank
FXStreet (Bali) - Michael Every, Head of Financial Markets Research Asia-Pacific at Rabobank, notes that it is quite worrying the fact that Greek PM Tsipras resigned yesterday and will call snap elections for September yet it does not even make the major headlines in most financial press anymore.
Key Quotes
"Underscoring the extent of the current currency problems, the fact that Greek PM Tsipras resigned yesterday and will call snap elections for September does not even make the major headlines in most financial press. That may be due to fresh market consensus that Greece ‘will vote the right way’ (just as in January and the recent referendum?)."
"However, a potentially more worrying reading is that elections no longer matter: the Troika have told Greece what to do, and Greeks are merely voting for the figure they want to implement its policies; and what holds true for Greece presumably holds true for others in Europe."
"If so, history suggests this is another area where central banks attempts to play Superman and suppress volatility will eventually backfire in Kryptonite (which ironically sounds like a Greek political party)."
Key Quotes
"Underscoring the extent of the current currency problems, the fact that Greek PM Tsipras resigned yesterday and will call snap elections for September does not even make the major headlines in most financial press. That may be due to fresh market consensus that Greece ‘will vote the right way’ (just as in January and the recent referendum?)."
"However, a potentially more worrying reading is that elections no longer matter: the Troika have told Greece what to do, and Greeks are merely voting for the figure they want to implement its policies; and what holds true for Greece presumably holds true for others in Europe."
"If so, history suggests this is another area where central banks attempts to play Superman and suppress volatility will eventually backfire in Kryptonite (which ironically sounds like a Greek political party)."