A few thoughts on the results of the Greek elections:
(i) I assume Mr. Samaras has realized by now that his support of elections was ill-advised. Papademos’ government should have stayed in power until Greece went back on track.
(ii) Mr. Tsipras essentially makes the same arguments that Mr. Samaras used to make. He pretends to not realize that there is no free lunch. Some Greeks will vote for whoever promises no pain, be the far left or the far right, but there is no gain without pain in this case.
(iii) Any solution should come from within the European community with the endorsement and support of the IMF. Greece should not take any unilateral steps. This is a European problem that will take the whole Europe down unless drastic steps are taken.
(iv) A return to the drachma would bring Greece decades back, but of course we are choosing between Scylla and Charybdis here.
(v) Once more, the Euro needs to be devalued to stimulate European exports.