Now that the Greeks voted the way the rest of Europe wanted, things should be rosy from here on out right? Don’t bet on it.
As Louis Basenese just told WSD Insider subscribers today, “The number of near misses for Greece is getting comedic. And I doubt this one will prove to be the last miss either before we get to the country’s tragic exit from the eurozone.” (Go here to see how to upgrade your subscription today.)
Indeed, many think Athens will have no choice but to breach the terms of its bailout as harsh austerity measures continue to cripple the Greek people.
Making matter worse, the rest of the eurozone remains on shaky ground, too.
As Tobias Blattner of Daiwa Capital Markets says, “Now we know [Greece’s expulsion from the eurozone is] not going to happen within the next two or three months. And I think in a way that uncertainty is still hanging over the markets. Also we don’t just have the Greek problems. In the rest of the euro area the problems remain so in a way I think now all eyes will be on the European summit next week.”
It’s becoming clear that given the amount of problems facing the eurozone, Europe’s leaders need a policy solution on a different scale to avoid a full euro breakup.