By Delusional Economics, who is horrified at the state of economic commentary in Australia and is determined to cleanse the daily flow of vested interests propaganda to produce a balanced counterpoint. Cross posted from MacroBusiness .

European markets were lead by Greek equities which were up 6.8%, attempting a bounce last night on the news that:

Greece’s conservatives have regained an opinion poll lead that would allow the formation of a pro-bailout government committed to keeping the country in the euro zone, a batch of new surveys showed on Saturday.

I’m not too sure why this is such good news, Greece is in deep trouble either way and it would take a person with a serious short term memory problem to forget what has already happened to Greece under the existing programs. Either way, the campaign by New Democracy appears to be clawing back voters leading to a response from the left:

Alexis Tsipras, the head of the Coalition of the Radical Left (SYRIZA) the surprise second-place finisher in stalemated May 6 elections is swinging back. He is locked in a neck-and-neck duel to win the next elections. He accused New Democracy leader Antonis Samaras and PASOK Socialist leader Evangelos Venizelos of trying to frighten Greeks into voting for them with horror stories of a complete economic collapse and anarchy if Greeks support him and other anti-austerity parties that won 68 percent of the vote in the first elections. Tsipras accused “domestic political forces” of “blackmail, threats and lies,” and with scaremongering.

Samaras said SYRIZA’s intention to repudiate Greece’s loan agreement, or memorandum, with the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) could lead the country out of the euro. “A return to the drachma would lead to incomes, savings and assets being halved, while debt would

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