Welcome to the real world Mr Tsipras.
From his earlier comments, so far the markets are less than impressed.
Greek bond yields are up over a whole percentage point today at 10.49%, +101bp or 10.69%. The Athens stock market is -6.9%
Worries over how he’ll play bailout negotiations or whether Europe will start pulling the plug on funding have been the main drivers. Bank stocks have taken the biggest hit over fears of a run on money and liquidity drying up. Moody’s report that over €8bn has been withdrawn since November and that it’s not likely to abate.
We’re going to be heading to crunch time when Tsipras and Europe sit down to discuss a solution and it’s still probable that both sides will come to a face saving agreement rather than something that will lead to meltdown. That said we shouldn’t rule anything out.
Greek 10 year yields 28 01 2015
These troubles ramping up will likely stop the euro from wandering too far to the upside, even with a bout of dollar weakness
