When I woke up this morning the news was filled with what Greece were doing, which party will win will determine if austerity measures that secure their bailouts will be continued, hence the panic…
I have to admit to being quite put off by all this talk of Greece, that was until I checked my email on Saturday to discover an email from a favourite financial analyst entitled “The Bang! Moment is here”. I have to say that he is not one usually taken to scare tactics, but the lack of ability for Greeks to choose a parliament is derailing efforts to keep the Euro floating.
Here is the crux of the situation:
We know that money is simply flying out of Greek banks. A number of them are clearly insolvent, yet they are meeting demands for withdrawals. Where is the cash coming from? The answer is in the form of yet another acronym from Europe, called the ELA. Is there a limit to this largesse? And politicians are becoming rather snarky (short-tempered, critical, testy, irritable, freaked-out – you fill in the word) with each other. This is what happens when crisis-weary politicians face yet another Greek tragedy, but this time perhaps it will hit even closer to home. Is there anyone left anywhere who has not grown tired of reading about Greece? I am tired of writing about them, yet if we are to understand the sturm und drang, the storm and stress, of Europe, we must begin there. Because, unlike Las Vegas, what happens in Greece most definitely does not stay in Greece.
John Mauldin, Thoughts from the Frontline, June 16, 2012.
As we wait on tender hooks, we must not think that this will not affect little ol’ NZ, we are very much part of the global community and instead of sitting on our laurels we need to find the opportunities that will present themselves for us to not only survive, but thrive.