Let’s prepare for a big plunge in the stock market, economy in Greece and let’s leave the optimism for the future

Let’s prepare for a big plunge in the stock market, economy in Greece and let’s leave the optimism for the future
Let’s prepare for a big plunge in the stock market, economy in Greece and let’s leave the optimism for the future

Markets are the judges and markets frown on GDP growth with deficit-creating benefits… – At some point the fairy tale will end and the bill will be paid.

The Greek government, driven by the success of GDP at 5.5% to 5.8% in 2022, is already starting to predict that in 2023 growth will be 3.5%, perhaps even higher.
A recipe for growth driven by extreme deficits in the midst of inflation… for those who know basic economics this is a recipe for failure.
The holders of the shares, at least some of them, argue that the Greek stock market will recover… with the prospect that within 12 months it will have reached 1,000 units, breaking the previous multi-year high of 974 units.
These are all very interesting considerations but the logic is absent…

Let’s prepare for a big plunge in the stock market, economy in Greece and let’s leave the optimism for the future

No one analyzes what is coming.
The ECB warns that a wave of recession will hit Europe.
The warnings of the ECB should not be underestimated… a deep recession is on the way in Europe but the prosperous Greek economy will remain unaffected some believe, we are a small economy with special characteristics, so the impact of the upcoming negative developments will be negligible and thus Greece will manage to survive in bad times.
Greece has made a criminal economic mistake, in order for the government to maintain a program of uncontrolled benefits it has adopted a policy of extreme deficits, the primary surpluses have gone for a walk and with it the security plan to manage the public debt that has been declining for years and in the end it increases…
The recipe for inflation, deficits and rising interest rates is a recipe for disaster.
It is no coincidence that the 10-year bond persists at 4.25% with the prospect of reaching 5% since the 10-year German is already approaching 2% – it reached 1.91% – and the Italian is on the verge of 4%.
How Greece, an economy with a growth of 5.5%, has managed to have the worst performance in Europe in terms of bonds, no one has dared to answer and while only 20% of the debt is freely negotiable – we calculate 394 billion as debt –

Let’s prepare for a big plunge in the stock market, economy in Greece and let’s leave the optimism for the future

The Greek government, as Greek governments are wont to do, makes false promises.
Relying on a development subsidized by the state with benefits and less from tourism and revenues of 18-19 billion it is presented as a booming economy and at the same time the two markets that assess the plausibility of the macro-economic figures… behave as if Greece is approaching in recession.
How is it that the Greek stock market is at 839 units with a GDP of 5.5% and how is it that the Greek 10-year bond is at 4.25% showing the worst performance in the entire eurozone…
Otherwise the Greek economy is doing well… so they tell us but no one says in the middle of a long pre-election period who will pay the deficits created?
The money given to society today mortgages the future of Greece, which is already mortgaged…

Let’s prepare for a big plunge in the stock market, economy in Greece and let’s leave the optimism for the future

Soon we will see the Greek 10-year bond at 5% and also soon we will see the Greek stock market at 750 units.
When this happens optimism will have been pushed aside and investment depression will have taken over as what is to come will be very painful for everyone…
Greece by the way has not caught any monumental goal for history and the worst… shows the most unpleasant economic picture… they embellish the GDP with benefits and budget deficits but the markets do not believe them….
Markets are the judges, and markets frown on GDP growth with deficit-creating benefits…
At some point the fairy tale will end and the bill will be paid… let us all prepare ourselves because this moment is not far away…

www.bankingnews.gr


The article is in Greek

Greece

Tags: Lets prepare big plunge stock market economy Greece lets leave optimism future

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