While we’re waiting for the outcome of the Spanish election, I am setting the stage for a larger piece on the market reaction to a high frequency political event. There is a continuing rebuff to the global elites that only reside in their own echo chamber, much of it promoted by the established media. It’s amazing how the policy makers want to believe that the people cannot see behind the curtain. BREXIT was first and foremost a Dorothy/Wizard of Oz result.
Posts Tagged ‘Spanish elections’
Notes From Underground: Spanish Election Provides No Surprise
November 20, 2011As the polls expected, the Spanish election offered no surprises as the Center Right Popular Party appears to have attained an outright majority and the socialist party has been trounced. The markets appear to want to believe that this outcome is EURO POSITIVE AND SPANISH AND ITALIAN DEBT POSITIVE BUT I WARN THAT IT AIN’T NECESSARILY SO. Did the PP win a historic election so that they can deliver MORE AUSTERITY TO THE SPANISH PEOPLE? HOW MUCH ECONOMIC CONCESSIONS ARE THE SPANISH PEOPLE WILLING TO MAKE? IF THE ANSWER IS VERY LITTLE, THEN WHAT NEXT FOR THE EUROPEAN UNION?