Investing In Greek Elections

Greek elections are set for June 17th following the impasse of the last election where no majority government formed. The "Destroy Greece to Save the Euro" clowns led by German Chancellor Angela Merkel are out in force hoping to turn the vote into a direct referendum on the Euro. The election is of course a direct referendum on the Euro, but Greek citizens are under three Fantasyland ideas. Three Fantasyland Ideas

The basic laws of economics are threatening to pull the eurozone apart, just as politicians are trying to pull it together. As usual, the ECB is stuck in the middle of the mess, and it doesn't like it one bit. For two and a half years, interest rates in the big industrial economies have only gone one way - down. Central banks slashed rates to historic lows in the wake of the financial crisis and then left them there. But not any more. Now the ECB has broken ranks, with today's long-anticipated quarter point rise.

New Democracy won the Greek election. However, party leader Antonis Samaras still needs to form a coalition.  If this seems like Déjà Vu, it's because it is. We were in the same place following the May election. Does the Outcome Matter? This go around, I expect Pasok will reluctantly cave in and form a coalition with New Democracy.  The price might be high, such as demanding the much despised Antonis Samaras to step aside. Regardless, does the outcome matter?

All eyes are focused on the Greek election on Sunday. However, a fundamentally far more important election (for the long term) will take place in France on Saturday.

LONDON — Another month, another record unemployment rate for the economy of the 17 European Union countries that use the euro. Figures released Friday by Eurostat, the EU’s statistics office, showed that the recession in the eurozone pushed unemployment up in the currency bloc to 11.7 percent in October, the highest level since the introduction of the euro in 1999. The rise from September’s previous record of 11.6 percent was anticipated after the eurozone returned to recession in the third quarter, commonly defined as two consecutive quarters of negative growth.