How Anxious Should Investors Be About Greece?

The video discusses significant movements in the Greek bond and stock markets, driven by political developments involving Prime Minister Samaris and the potential rise of the anti-austerity party Syriza. The Athens Stock Exchange experienced a major decline, and Greek bond yields showed a concerning curve inversion, indicating increased default risk. The upcoming presidential vote could lead to further political and economic changes, with Syriza's potential victory posing challenges for Greek assets.

What is the political risk faced by Prime Minister Samaras if he fails to secure support for his choice of a new head of state?

• He will have to negotiate with the European Union.

• He will have to resign immediately.

• He will be forced to call a parliamentary election.

• He will face a vote of no confidence.

What was the percentage drop in the Athens Stock Exchange on the significant day mentioned?

• 20%

• 13%

• 15%

• 10%

What is the significance of the Greek three-year bond yield reaching a record high?

• It means lower borrowing costs for Greece.

• It suggests a heightened perception of default risk.

• It shows increased investor confidence.

• It indicates a strong economic recovery.

What does the curve inversion in the Greek bond market indicate?

• A heightened perception of default risk.

• A sign of economic stability.

• An increase in Greece's access to capital markets.

• A decrease in default risk.

What is the potential impact if the anti-austerity party Syriza wins the election?

• A smooth transition of power.

• Immediate economic recovery.

• Increased political stability.

• A challenging period for Greece.