Greece Has A Government Now, So Everything's All Right, Right?

Starving Greeks queue for food in their thousands as debt-wracked country finally forms a coalition government... but how long will it last?  Samaras will be hurtling into a massive political shitstorm, no matter what he tries or ultimately does.  No action will please a majority of Greeks.  And there already quite a few who are super pissed off and riot-y.  There will be no honeymoon period.    Congratulations again, Mr. Prime Minister, on your "victory."  Daily Mail.  Excerpts:

Starving Greeks queued around the block for free food handouts yesterday as the country's politicians managed to end a crippling stalemate to form a coalition government.

Young children as well as the elderly waited in line in Athens to collect the parcels of fruit and vegetables donated by farmers from Crete to help ease the devastating austerity faced by many Greeks.
But as hungry people collected food, a few miles away a new conservative-led alliance was formed, vowing to renegotiate the country's strict European bailout in a bid to breath economic life back into the debt-stricken country. 

Don't forget, Merkel has already stated she Will Not Re-Negotiate any terms of Greece's bailout.  It's all theater on Samaras' part;  Greece's harsh realization in three..  Two..

Conservative Antonis Samaras was sworn in as prime minister and head of a three-party coalition that will uphold the country's international bailout commitments.

In the hot seat: New Prime Minister Antonis Samaras vowed to rescue Greece's economy as he spoke for the first time after being sworn in to office at the presidential palace


The move ends a protracted political crisis that had cast grave doubt over the country's future in Europe's joint currency and threatened to plunge Europe deeper into a financial crisis with global repercussions.
Samaras, an American-educated 61-year-old economist, was sworn in three days after his party won the second national elections in six weeks but without enough votes to form a government on its own.


His New Democracy party will join forces with the socialist PASOK party, which came in third place, and the smaller Democratic Left led by Fotis Kouvelis.
Discussions on the lineup of ministers were expected to be completed by Wednesday night.
‘I will ask the new government that will be formed tomorrow to work hard so that we can offer tangible hope to our people,’ Samaras told reporters as he left the presidential mansion.
Greek stocks rose marginally in response to the news, with Athens shares closing up 0.5 percent, limiting earlier gains.
The new prime minister was to meet with outgoing Finance Minister Giorgos Zanias, PASOK head Evangelos Venizelos and Kouvelis on Wednesday evening.
All three parties broadly back Greece's pledges to bailout creditors for further austerity and reforms, although they have pledged to renegotiate some of the terms for the rescue loans.

Again, Merkel and the rest of Germany will not budge.  The Greeks will only bring back bad news.  How long will this coalition last? 

Greece Is Just A Preview Of What's Coming For The Rest Of Us

From Chris Martensen at ZeroHedge:  Funfun! Excerpts:

All eyes are on Greece these days, with hopes the situation there can soon be resolved and the global recovery kicked into high gear.



Sadly, those hopes are misguided claims Ben Davies, CEO of Hinde Capital. In fact, he says, Greece's pain foreshadows the future awaiting the rest of the world.


It all comes down to simple math. Greece has increased its debts at a rate far faster than its income has grown. At some point, the debt became so large that the country could no longer service it.


What makes the rest of the PIIGS(Portugal, Italy, Ireland, Greece, and Spain) immune from a similar fate? Or Japan? Or the US? Or the OECD, in general?
Nothing.
And:
The cold hard fact Greece is facing is that it's now at the point where extraordinary losses need to be taken. The problem is, no one wants to take them. And all the sturm und drang being exhibited by Brussels, the ECB, sovereign debt holders, and other world leaders is nothing more than a frantic game of hot potato.



The one thing we can be confident of is that at some point, these losses will be taken. The market will eventually force it.


And the second thing we can predict is: we don't know what will happen when they are. There is so much complexity in the counterparty exposure to Greece debt - as well as the much larger derivative exposure tied to this debt - that anything between "not much" and "worldwide financial conflagration" could be possible.

Not specific, but scary, nonetheless..

Greek Parliment Votes Austerity. Greek Citizens Vote Chaos..

Here we go..  Greek financial and political discourse is about to get really rocky..  With real rocks.  The Roundup begins now..  The Extinction Protocol, via Reuters..  Excerpts:

Historic cinemas, cafes, shops and banks were set ablaze in central Athens on Sunday as black-masked protesters fought Greek police outside parliament, while inside lawmakers looked set to defy the rage by endorsing a new EU/IMF austerity deal. State television reported violence spread to the islands of Corfu and Crete, the northern city of Thessaloniki and towns in central Greece. Shops were being looted in the capital in the worst breakdown of order since 2008 when violence gripped Greece for weeks after police shot a 15-year-old schoolboy. As parliament prepared to vote on a new 130 billion euro bailout to save Greece from a messy bankruptcy, a Reuters photographer saw buildings in Athens engulfed in flames and huge plumes of smoke rose in the night sky.

Yeah, it's burning..

So, what does this all mean?  Tyler Durden from ZeroHedge 'splains and sums up..

The Greek parliament just passed the latest proposed austerity plan with a majority voting Yes. Judging by the reaction of the EURUSD, which experienced a modest 40 pip short covering squeeze in the last few minutes, one would imagine that today's Greek vote outcome is surprising. It isn't: after all, all Greece has done is promise to do something it won't do in hope it can get another bailout package, this time amounting to €210 billion (of which its people will pocket a de minimis 19%). As we said earlier: "The only real questions are i) what the Greek population may do in response to this latest selling out of a population "led" by an unelected banker, which if history is any precedent, the answer is not much, and ii) how Germany will subvert this latest event, and put the bail [sic] back in Greece's court once again."
Plus, a little funny for you..
..everyone knows revolutions in heavily socialist countries only start between 9 am and 5 pm, with a 2 hour break for siesta.

Not funny, though, is how the Greek people will respond to these financial shenanigans.  Not well is the answer; Not well at all..

I fear for a social explosion: Greeks can't take any more punishment The Guardian.  Excerpts:

Despair has enveloped Greece. This weekend the bankrupt nation, for that is what it is, began negotiating the latest act of a drama that many fear will end in catastrophe – financially, socially and politically.


In an electric atmosphere, with thousands demonstrating outside parliament, MPs began debating the arduous terms of a €130bn (£110bn) rescue package that the interim prime minister, Lucas Papademos



"A disorderly default," he said, referring to the 20 March deadline that Greece faces of repaying €14.5bn in maturing debt, "would plunge our country in a disastrous adventure. It would create conditions of uncontrolled economic chaos and social explosion."
..
But in both parties MPs are far from convinced. The country has reached a crossroads, of that there can be no doubt. But almost two years since it was first "rescued" with €110bn, the nation's acceptance of this latest lifeline puts it in a perilous place. Politicians, almost without exception, believe they are "damned if they do and damned if they don't".


After more than two decades reporting from Athens, I can only concur. For the truth – as unpalatable as it may be for the IMF, EU and European Central Bank, Greece's "troika" of creditors – is that, far from plugging the country's budget black holes, the harsh austerity pursued in the name of deficit-reducing goals has pushed it towards economic and social collapse. Relentless wage and pension cuts, tax rises and cost-cutting reforms have left the country a shadow of itself. In its fifth successive year of recession, Greece is a hollowed-out version of what it once was, coming apart at the seams a little more with each day. Men and women forage through rubbish bins late at night. More sleep on the streets. Last week as Eurostat, the European statistic agency, announced that poverty had engulfed more than a third of the nation, it was revealed that unemployment had also exceeded one million people, from a record 19% to 20.9% in one month.


"Nothing functions. Nobody pays anybody any more and the state is not just crumbling but in complete stasis," said Giorgos Kyrtsos, a prominent political commentator. "These guys," he said of officials in the troika of European agencies negotiating the bailout, "should really lose their jobs. They've miscalculated everything. I understand on Friday the police trade union called for their arrests. Well, maybe they are right!"

..
A series of resignations by ministers on Friday, unwilling to support the latest measures, not only underlined the panic of the political class – in a country where MPs no longer feel safe walking in the streets – but proved how tenuous public support is for the bailout. If there is to be a social explosion, many said that it would come because Greeks had been pushed too far. The loan agreement not only will lead to job losses and more cuts in salaries and pensions but a 22% reduction in the minimum wage.



Ferment on the street is back. The clashes during last week's second general strike are generally expected to be a prelude to something much more ominous. "There is going to be a huge social eruption," said Apostalia Kiroudi, an unemployed jeweller shouting herself hoarse in front of parliament.

"Our politicians lied to us. They never told us the truth, and now they want to pass policies that they have no mandate to do. As that sign says over there," she said, pointing to a friend holding a placard, "We choose to be free. Keep your money."

Things are going to devolve rapidly.  The bankster gangsters won't take The People's shit, and vice versa.  And the Greeks have proven time and again they're always up for a fight, and a fight they shall have.  I sure hope Riot Dog has been resting up--In the coming days, he's going to be busy!

Meanwhile, In Pre-Mayhem Greece..

FT Report That Greek Bailout Package On The Verge Of Collapse After Surge In Greek Funding Needs Sends Stocks, Euro Plunging From Highs  Tyler Durden for Zero Hedge.  Excerpts:

Wondering what just caused the market to slump? Take a wild guess. That's right - Greece. Minutes after Greece passed a vote in which it promised to promise to promise to consider collecting 1998-1999 taxes (even as all of its tax collectors are about to go on permanent strike), the FT was breaking news that while the Troika was "bailing out" Greece in the past years, the country was spending itself into an  even greater oblivion. As a result, the terms of the July 21 Second Greek Bailout will most certainly need to be renegotiated, with banks having to take even greater write downs on the bond exchange, and with far more capital having to be injected into the country.

The Downward Spiral tightens; speeds up.

Strikes and protests mount against austerity in Greece  World Socialist Web Site.  Found it on Rense.  Excerpts:

“Today, it is no longer safe for us to go onto the streets,” a politician of the Greek ruling party PASOK told the Frankfurter Rundschau. “We are the government and we are alone.”



Widespread popular anger against the government in Greece has only intensified following the latest round of austerity measures. Incidents abound of politicians of both the social democratic PASOK and the conservative opposition New Democracy (ND) being pelted with eggs and on occasion stones when they show themselves in public. Angry crowds have repeatedly besieged the homes of politicians and chanted “thieves, thieves” and “Give the money back!”


According to surveys conducted by Eurobarometer, 82 percent of Greeks have lost confidence in the government and 83 percent distrust the parliament. Sixty-seven percent no longer trust the European Union. Other polls show that PASOK would today win just 15.5 percent of the vote in a new election.

It's all hanging by only several threads..  The Big Question remains:  How big the shock waves will be, and how hard those impacts will be felt.  Globally, of course.