Greek Elections Signal Return of the Drachma Drama

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May 20 (Bloomberg) -- In today's "Global Outlook," Bloomberg's Michael McKee reports on the return of concerns for the Greek economy as voters go the polls in the nation this week. He speaks on Bloomberg Television's "In The Loop."

Talking about whether they could fall out of the euro zone.

I thought they were just finally getting out.

Europeans are going to the polls to elect a new european parliament and they will be voting for people candidates in greece.

The 2 parties that control the government have seen their popularity drop significantly because economic conditions are pretty bad their bank -- pretty bad there.

There is a feeling that if they get a very small share of the vote they might have to drop out of the governing coalition, which sets up the question -- is the single party new democracy in charge enough?

If they don't, the government might fall and they need to hold new elections and there was a possibility that one of the extreme groups, even the neo-nazi party could get a significant number of seats, and i could invalidate the deals they have for their loans in the european community.

We have seen great bond yields, which had come down significantly, starting to rise again.

We're seeing that reflected a little bit with bond yields and other european peripheral countries.

I thought they sold it for 4, 5%. the bond market so far have some faith that they will get through this.

The big reason is that at this point they are believing mario draghi and the idea that they will step in to save them if necessary.

What about the people?

Are they more content now?

They are getting better among not all that better.

Unemployment is still over 25% there.

And in italy we are seeing unemployment rise.

You could see a populist backlash and that raises the question of where they go from here.

That does it for today on "in the loop." keep it here on bloomberg television.

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This text has been automatically generated. It may not be 100% accurate.


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