Everyone is weighing in on Greece.
Here’s superstar strategist David Zervos on Jefferies with his key takeaway:
And while the lack of a formation of a government is clearly unsettling, I think the most critical lesson from tonight is what we are hearing from the Greek people. Alexis Tsipras, the head of Syriza, stood on a platform with one central theme – cancel the bailout agreement with the European Union and International Monetary Fund. Or as he calls it the “memorandum of barbarity”. He did not call for an EU exit like the others on the far left (or far right); but he wants to hire more civil servants, abandon the structural reforms and get a Greek “Marshall Plan” funded from the rest of Europe. Sounds like a great plan huh? No changes and a bunch of cash. No wonder he sold so well! Welcome to Greek “la la” land!!
But I suspect the game plan from Syriza (and others on the left) would be to cancel the agreement and deal with the fallout later. They don’t want to leave the EU of course, but if they are kicked out for violating the rules so be it. This part of the Greek body politic is ready to fight back and play a little game of chicken with the EU. Having Hollande in place may even given them a little extra confidence!