This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Life After the Greek Elections

NEW YORK ( TheStreet) -- With (unconfirmed) reports of ballot rigging, voting stations set ablaze and no party winning anything resembling a majority, the stage is set for act three of this Greek tragedy. Entering stage left, in their recurring roles, market insecurity and volatility.

The left-wing party of Alexis Tsipras, the Syriza Party, gained enough votes, about 27%, to remain a political force and cause further damage to an already-fragile environment. The more centrist and established New Democracy Party eked out a victory over the anti-austerity left with 30% of the vote, an outcome that appears to be disappointing the markets.

The difference between the two parties is that Tsipras is attempting to blackmail Europe into changing the terms of the Greek bailout by threatening to abandon the deal altogether, while Samaras, who heads the New Democracy Party, favors a more tempered approach and wants to renegotiate the terms.

The first step after these elections will be an attempt to form a coalition to gain a majority in Parliament. If unsuccessful, as we expect, a new round of elections must be held. Even if a coalition government is formed, we suspect that too much time has passed to alter the trajectory of history.

Both parties insist that no one wants to exit the euro or eurozone, but the reality is that the Greek people have spoken, they are divided about the future, and with their voice, they have likely sealed their own fate and further isolated Greece from Europe.

Moreover, a Greek exit from the union, previously seen as taboo by European policy makers, is no longer far-fetched. In a recent speech, European Central Bank Chairman Mario Draghi acknowledged the possibility of an exit by Greece and went on to say: "We won't compromise our key principals to prevent that outcome," meaning that extreme compromises from the ECB and northern Europe are unlikely.

With near 50% youth unemployment, a sharp contraction in GDP and reports that Greek utilities are rapidly running out of cash, forcing the implementation of rolling blackouts, the political and social environment could hardly be more volatile.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs