Granite Group Advisors

Over the weekend the Greeks had another election in an effort to form a new government.  This was a highly anticipated event, as the election had many consequences to global markets.  When all was said and done, the Greeks voted to stay in the Eurozone and the majority went to the New Democracy party.   However, the New Democracy party did not win the majority needed to form a new government and are now working to create a coalition government so that they can move forward.  Basically, nothing has changed from Friday, as Greece is still in waiting.  They need a majority coalition to continue to get money from the European Central Bank and make good on their promises of austerity.  Our take is that the European debt crisis will continue and there are still serious problems in Spain, Italy and others.  This will continue until the European leaders can restructure and learn how to do business together.