Greek stocks plummet on fear of political crisis
Source: Associated Press
ATHENS, Greece (AP) Greek shares dived Tuesday by the most in decades on concerns that the country is heading for a political crisis that could put in jeopardy its vital bailout program.
The Athens benchmark index tumbled 11.3 percent in midday trading Tuesday, the biggest one-day drop since 1987, after the conservative-led government brought forward the date of a presidential vote. If the ballot in parliament proves inconclusive, it could lead to general elections.
The market sell-off reflects fears that the main left-wing opposition party, Syriza, which is leading in the polls, might win the general election. Syriza has said it will demand a substantial cut to what Greece owes in bailout loans.
It hasn't clarified whether it would resort to unilateral action, a move that would lighten Greece's debt burden but would have other potentially negative repercussions. It might, for example, spook international investors away from lending the country money for years, hurting its ability to get back on its feet financially even after the economy improves.
Read more: http://bigstory.ap.org/article/93a204901aea4d0ea34132f6a15a19eb/greek-stocks-hit-political-uncertainty-looms
another_liberal
(8,821 posts)To hell with the international bankers and filthy rich who live off the suffering of the poor. All wealth belongs to the people!
mtasselin
(666 posts)When will the people wake up and throw these gangsters out on their ear or how about this in prison where they belong. Banksters create these problems and then reap all the benefits and it is the people who suffer. Get your pitchforks.
LiberalLovinLug
(14,174 posts)Mostly because the wealthy elite hold all the cards. Austerity is simply a term that is used to invoke fear and panic to accelerate the repeatedly failed "trickle down theory" onto a population. A flavor of Disaster Capitalism. In other words, take away as much public benefits, liveable wages, outright jobs, cultural spending, education spending, to make up for the pay backs to the same elite that gambled with the world's economy and crashed it, causing the defaults in the first place. On their promise to re-invest and kick start the economy again, a more "lean" economy with minimum wages and no security. And they even fail at doing that.
So if the left does win again and snub their noses at the IMF, the other card the elite hold is they can close businesses and divest, or even simply hold onto any profits, or invest in foreign markets..instead of re-investing in their own countries. It has happened under Obama to some degree, and also in many Central and South American countries that have tried to go left through the decades. Then the inevitable downturn happens, and with media generally in the hands of the elite as well, they can pump up the rhetoric and with the very real pain of the population because of they themselves, and they will steer just enough voters back under the safe folds of their benevolent masters to "right" the ship.