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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Greek polls point toward more bailout and less exit

There won’t be a news brief tomorrow, Tuesday, May 29, 2012.

Over the weekend, the IMF’s Christine Lagarde said she felt more strongly about children in sub-Saharan than Greeks affected by the crisis. Candid, Christine, candid… [Apparently she has proclaimed her sympathy for the struggling Greeks on her Facebook page by now.]

But speaking of which, the political outlook for Greece has changed a bit and the conservative party New Democracy has surpassed Syriza in the polls by almost 6%. Assuming this was the outcome of next month’s elections, it would mean compliance with the EU-induced austerity measures and more bailout money from Brussels, i.e. no exit! For all I know, it might be the other way around tomorrow. read article

Lloyd’s of London didn’t get the memo or doesn’t want to hear about it and keeps preparing for all exit scenarios of the rainbowread article

Former caretaker prime minister Lucas Papademos said that Greece would be completely bankrupt within the next month, unless the new elections lead to a workable government. Bankrupt, you ask, haven’t they been out of money for ages now? Yes, of course, but it has gotten to the point where wages won’t be paid anymore from one day to the other. The FT reports that many Greeks postponed their tax payments in fear of an exit from the eurozone and Greek banks have seen cash withdrawals of €3bn over the past three weeks. There is still money lying around that could be used in the short-term; unfortunately, all of it needs to be approved by foreign entities who don’t like to have their guidelines messed with. The next repayment to the ECB and other central banks is due in August. read article

Did you know that Spain is the largest producer of olive oil in the world (70% of global output)? Neither did I; honestly, when I think of olive oil, I think of Italy. Sorry. Well, a new crisis has arisen: according to a German consulting firm, the crisis has caused Southern Europeans to consume less olive oil. Paired with oversupply, the price for olive oilslumped to a 10 year low, which is forcing the EU to step in to reduce the surplus and keep the Spanish industry from imploding. read artilce

On Bloomberg View, a discussion of the roots of the political crisis that Europe is undergoing and why it won’t bring back the “ghosts of Europe’s authoritarian and racist past.” read article

In the background, Mariano Rajoy is giving a press conference regarding something involving a bailout and Bankia… Dunno.

So long.

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