Opening Statement from the July 2015 CCPM Forecaster

Opening Statement from the July 2015 CCPM Forecaster

Originally published on July 5, 2015

Alert traders were rewarded on June 28/29 after Greece rejected the troika’s bailout terms. Thereafter, Prime Minister Tsipras opted for a referendum on July 5 to allow Greek voters to decide their fate. 

Keeping in tradition with a Greek drama, Tsipras and Finance Minister Varoufakis are advising voters to vote “No,” positioning this as a victory for Greece. A “No” vote means the current leadership will remain in power as Greece continues to negotiate a deal. A “No” vote also means Greece will remain in the euro. 

Unfortunately for Greece, the Greek government seems determined to keep Greece in the euro. If Greece’s political leaders had the Greek people’s best interest in mind they would tell the banks to get lost, exit the euro and restructure their economy using their own currency. They could go back to the drachma. They could recapture their culture and way of life that they previously enjoyed.

The economic adjustment facing Greece as a result of an exit from the euro would no doubt be extremely difficult, but not much different than what the IMF is currently proposed. Down the road, a Greek exit would offer a greater level of prosperity, unlike the case if it were to remain in the euro and EU. Make no mistake. Tsipras and Varoufakis are about as loyal to the Greek people as....

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Mike Stathis holds the best investment forecasting track record in the world since 2006.