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Posted by on May 18, 2012 in At TMV | 5 comments

Will Greece Elect Pro-Bailout Government?

It looks like the leftist coalition that forced new elections in the hopes of gaining more power may see thing backfire.

A poll shows that the two traditional parties will get enough votes to form a new government.

This is a good sign for the Greek (and world) economy.

You can debate the relative merits of the bailout and austerity but the fact is that Greece simply cannot continue to spend the way they have been. That’s not rhetortic, that is math.

If the Greeks did reject the bailout then the likely result would the collapse of the Euro and an eventual Greek default on their loans. The default would cause serious problems for both the banks that made some of the loans and the governments that backed the loans.

This would likely lead to an economic slump in Europe and that in turn would badly hurt our own economy.

So keep your eyes on these elections and keep your fingers crossed