Greece decides to go over the cliff

In a referendum Sunday the Greek people have voted overwhelmingly to reject the terms of ongoing financial support from “The Institutions”:

It is hard to exaggerate just how resounding the “oxi,” or “no,” vote was Sunday in Greece in support of the Syriza government and its leader, Alexis Tsipras. The vote — 61 percent “no” in the most recent tally — is a landslide victory for the recently elected government, and conversely, a stark rejection of the ongoing terms of the bailouts from its creditors. The lopsided outcome was all the more impressive as the polls predicted a cliffhanger (apparently, the polling industry is in serious trouble worldwide), the media was largely controlled by the “yes” faction, and the opposition was, and among some still is, threatening to cut off critical financial assistance and show the Greeks the exit out of the eurozone.

We should be careful not to under-interpret the meaning of this vote.

After first electing Syriza and reaffirming their stance with a referendum the Greek people have insisted they are against not only the terms of austerity and the terms of continued financial support, but also by definition, continued union with the European Union. This cannot be stressed fully enough. Those who made their votes on Sunday knew exactly what the consequences of those votes would be. It has been done and now the EU must do their part.

May god have mercy on Monday’s market.

[Washington Post]