Note from dshort: As I type this note, the Greek election is just a few hours away. The general perception is that none of the political parties will win a parliamentary majority. At the request of a reader, here is an updated snapshot of the Greek stock market, one month after my initial post on the topic. Last month I read a couple of interesting commentaries by familiar pundits at Project Syndicate on the ongoing disaster in Greece.
The latest Greek unemployment rate, data through March, is at a record 21.9% and 52.8% in the 15-24 age group, up from 42% a year ago. The country, having failed to elect a government, has sworn in a caretaker technocratic cabinet to govern until new elections on June 17.
Of the many grim facts about the situation in Greece, here is a snapshot of one of the ugliest. The Athens Stock Exchange General Index is a capitalization-weighted index of Greek stocks listed on the Athens Stock Exchange. As of Friday's close, the index had risen 13.71% for the week but is nevertheless down 89.5% from its all-time high at the end of October in 2007.
To put this stock market catastrophe into a larger historical context, here is an overlay of the Dow Crash of 1929 and the Crash of the Athens Index.
The crash of the Dow was a bit faster, but on June 5th, the Athens Index hit its trough to date, down 91.07% from its 2007 all-time high. We'll soon discover the outcome of the next round of elections for the birthplace of democracy.