Saturday, June 16, 2012

Will Greek Elections be a Preview of U.S. Elections?

The June 17, 2012 Greek elections, if a municipal worker strike doesn't delay them, may be a preview of the November 6, 2012 U.S. elections.   The Greeks will show whether they support austerity measures, or growth  measures ( euphemism for spending beyond means measures :-).

Why Greek People Are Voting for Leftist Syriza at reports that public sector workers (1/3 of the workforce) protecting their benefits and systemic avoidance of financial responsibility ( e.g. not paying electric bills or underpaying taxes) are among the reasons.   There also seems to be a general belief that there will no financial consequences for not meeting financial obligations.

I can see some similarities with the U.S.   About 15% are public sector employees, and while there is not a systemic avoidance of financial responsibility, there has been call for forgiveness of student loan and underwater mortgage debt.  Also, the current administration believes the solution to too much government debt is more government debt. 

The outcome of the Greek elections will be interesting, what ever the result.  Based on last week's market results, it appears any outcome will be a positive catalyst for the stock market.  So I am preparing again a market rally next week.

For more on  Reflections and Musing, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2012 Achievement Catalyst, LLC

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