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Watch The Greece Vote This Weekend Closely

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Pillar of the Community
traevin's Avatar
United States
1454 Posts
 Posted 06/14/2012  4:07 pm Show Profile   Bookmark this topic Add traevin to your friends list Get a Link to this Message Number of Subscribers
Depending on the vote, we could see major movements in the silver market on Monday. To get you prepped, here are the players hoping to run the country and their respective platforms: New Democracy and PASOK want Greece to stay in the Eurozone and accept austerity. Syriza would scrap Greece's prior commitments to cut spending and raise taxes and, if the party sticks to that, it would certainly usher the country out of the EU, posthaste- although the party's misguided leader thinks he can trash his debt obligations but still somehow remain in the EU with little blowback to his country. Historically, Germany hasn't been known as the forgiving type, so good luck with that, Syriza.

So, if Syriza wins, expect silver, and to a lesser extent, the stock market, to fall as much as 5 to 10% overnight. For those in the mood to spend a little, this might offer a nice buying window early next week. If the other two major parties claim a solid victory- remember, Greece has a parliamentary system so the winner could end up sharing power if a certain majority of votes isn't reached- silver should maintain its "sideways" trajectory for at least the short term.

For such a small country, this vote is turning out to be a truly big deal. Globally.
Bedrock of the Community
sel_69l's Avatar
Australia
21788 Posts
 Posted 06/14/2012  7:54 pm  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
If Greece gets out of the Eurozone, they will be on their own, and have to finance for themselves their own lifestyle no matter how rich or poor that may be. No one wants to lend to them, because there is little prospect of being repaid. If they get out of the Eurozone, there will no responsibility on the rest of the Eurozone Countries to 'bail them out' any more.

Civil disruption will ensue.

The rich people of Greece are busily withdrawing all of their money as fast as they can. A lot of that capital is being invested in U.S. Treasury Bills despite their low return, because they are seen as being a lot safer than staying in Greek funds with the risk of their money vanishing with strong inflation. The rich Spanish people are doing the same thing.

That is one of main reasons why the U.S. dollar is stronger at this time.
Valued Member
Center Pin's Avatar
Canada
178 Posts
 Posted 06/14/2012  10:43 pm  Show Profile   Bookmark this reply Add Center Pin to your friends list Get a Link to this Reply
Funny how a country with less people than Ohio can cause market to over react.
Pillar of the Community
Windchild's Avatar
Canada
1411 Posts
 Posted 06/14/2012  10:52 pm  Show Profile   Bookmark this reply Add Windchild to your friends list Get a Link to this Reply
Yea... Although if Greece fails so will many other countries as the banks will run out of money...
Bedrock of the Community
sel_69l's Avatar
Australia
21788 Posts
 Posted 06/15/2012  11:19 am  Show Profile   Bookmark this reply Add sel_69l to your friends list Get a Link to this Reply
The European bankers are afraid of a domino effect, because most of their banks are in a far than less than ideal financial position.

Too much money has been lent out for too long to people who cannot afford to pay it back.

Something like the toxic housing loans taken out in the U.S., before the financial crisis made itself felt there.

In Greece, the Government propped up a way too expensive social security system for far too long, and kept asking for more and more bail out loans from the rest of the Eurozone.

Spain Italy Portugal and Ireland did the same thing, because it was politically expedient to do that, to stay in power.


All caused by imprudent banking practices.
Edited by sel_69l
06/15/2012 11:22 am
Pillar of the Community
bekiz's Avatar
Japan
666 Posts
 Posted 06/15/2012  11:23 am  Show Profile   Bookmark this reply Add bekiz to your friends list Get a Link to this Reply
Nothing extraordinary will happen.
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