Leftists Victory in Greece/France: Lehman Moment?
Today Europe is stuck in a dance of death between sovereigns and banks. Will it culminate in Lehman like moment? Global markets are selling off on this fear.
What is the Worry?
Global Financial markets are worried and for right reason: Who is in charge of Euro? And Who will solve the problem post election results?
The French and The Greek elected leaders are promising moon to voters. BUT where is the money?
The players with money—Germany and the European Central Bank are not keen on any debt-funded stimulus plans; and wants to pursue the path of fiscal prudence. In other words, it is not ready to finance French and German election promises. It’s quite understandable there is widespread public anger in Germany against handing out cash to foreigners.
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