The Greek Election Solves… Nothing

from Via Meadia by Walter Russell Mead:

The Greek Election Solves… Nothing:

Financial markets staged the usual relief rally overnight at what looked like good news from Europe. It appears that the pro-bailout parties New Democracy and Pasok won a parliamentary majority in Greece, so that if they can agree on a coalition, Greece will have a government that can work with the EU.

...

There are three reasons why the Greek election doesn’t help. First, Greece’s economic problems were overwhelming and insoluble before the election, and they are overwhelming and insoluble now. [...]

Second, the elections will not give Greece a strong government. [...]

The third and final reason why the relief rally ended so quickly: Greece was the curtain raiser for the European meltdown, but it is ultimately a sideshow. Europe has moved on now; we are worried about Spain and Italy now. [...]