Goldman Perfectly Sums Up The Greek Economy In One Paragraph
The radical Syriza party celebrates after finishing second.
Goldman’s Themos Fiotakis and Huw Pill have a note out about the Greek election, and we think this paragraph basically perfectly nails the situation today:
Overall, Greece will remain a source of uncertainty due to its macro-dynamics. The country is undergoing extreme economic pressures that are likely above and beyond austerity; prolonged uncertainty have led to a multi-year suppression in confidence and a collapse in credit growth, which has helped compressed the private sector, create supply shortages and has contributed to the lack of investment or privatization efforts, higher structural unemployment and persistent inflation currently observed. Unless this uncertainty of tail events is lifted over Greece, moderate solutions will be prone to marginalization, while extreme and populist views could become ever so prevalent.
That’s pretty much it right there.