Thursday, July 16, 2015

Greece's Bailout Approval Carries High Price Tag

Welcome is relative word. While the majority 'welcomes' a bailout as maintaining the world they know, it only pushes the inevitable unpleasantness into the future. The minority, slowly growing in size, recognizes that austerity cannot support a viable economy not only for Greece but also Spain, Portugal, Cyprus, as well as numerous others trying to support the illusion of economic growth through centralized planning. Greeks will increasingly see new bailout terms as their version of Treaty of Versailles. Germans, no doubt totally versed in world events between 1919 and 1933, should be reluctant to support it.

The Syriza government, backed by the people to end austerity, has been mortally wounded.  It power base, a function of confidence and perception, will decline rather rapidly.  This erosion process should include Tsipras' resignation and new elections as economic contraction intensifies.

Headline: Investors welcome Greek bailout approval

LONDON, (Reuters) - Stocks rose and euro zone bond yields fell on Thursday as investors welcomed Greek parliamentary approval of a bailout plan, while the dollar hit a six-week high after Federal Reserve Chair Janet Yellen reinforced expectations for a U.S. rate hike



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