There is certainly no doubt about it: Greeks have the politicians they deserve. And furthermore these politicians do their best to destroy the country and the economy, they never learn from previous mistakes and they spread fearmongering government propaganda at whatever the cost.
Out of the blue and for no real reason or argument, Minister of Administrative Reform Kyriakos Mitsotakis brought back the old dilemma Samaras’ and Venizelos’ parties had used during the 2012 elections to scare voters. That is: Euro or Drachma.
In an interview to Bloomberg, Mitsotakis claimed that in case of early elections the dilemma ‘euro or drachma ‘ rises again that that “investors of Greek bonds are passengers on a train of terror for the next four months.”
The effect of Mitsotakis’ predictions was a sell-off at the Athens Stock Exchange and losses reached even 5% during the day. Ten-year bond yield climbed to 8 percent.
Some excerpt from Mitsotakis’ interview:
“The reality is that there will be a climate of uncertainty until February.”
Volatility is caused by the fear of snap elections and the possibility that these will be won by a party which is not normal.”
Asked whether investors should just dump their Greek bond holdings until the next president has been installed [president’s term concludes in February 2015] , Mitsotakis said: “Don’t ask me, I’m just doing my job. Ask Syriza.” [SYRIZA main opposition left-wing party]
“Some of the dilemmas that we had to answer in 2012 will definitely be posed again in February.”
“If Greece’s political system doesn’t show that it’s serious about its commitment to reforms, then government bond yields will remain high. This should be understood by everyone involved and mostly from Syriza.”
“I don’t share the view that Syriza has gone moderate in its policy proposals. I see the same party, the same people, the same divisive political discourse. About 40 percent of its executives wouldn’t mind Greece leaving the euro.” (Bloomberg article here)
Ten-year bond yield rose 3 basis points to 7.6 percent at 10:40 a.m. in Athens today.
Short before 12 o’ clock noon time, Greek stocks were losing -4.68%, banks -7% and the General Index was at 886 units.
At the end of the session, Athens stock Exchange had managed to limit its losses at -2.80 percent and the General Index at 906 units.
PS left-wing SYRIZA does not need to make any statement and scare investors. It’s the Greek government doing this job!