Greece rejects austerity
the far left syriza party is projected to win 150 out of 300 seats in the new parliament.
they have pledged to demand renegotiation of the bailout they received a couple of years ago when the for all intents and purposes went bankrupt.
greece owes a total of 350B mostly to the european central bank,the imf and other governments. 30b is due to the ECB
3.5B comes due in july and another 3B in august
if they refuse to pay or if the ECB refuses to renegotiate they could have very interesting results
greece could for all intents and purposes be kicked out of the euro. as it stands now,the ECB is begining to buy government bonds in a QE program. As it stands they wont buy greek bonds until greece repays some of its outstanding bonds.
greece has big problems if the ECB refuses to renegotiate and they default on their debt. the ECB controls the liquidity of the greek banks. they could literally force the collapse of the greek banking system.
the greek leftists have also demanded that the other european governments write down 200B in loans they gave to greece. i dont see the other european countries doing this.
i think we are setting up for some kind of european banking/financial crisis
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