Tuesday, August 31, 2010
Sorry for the lack of posts, but, hopefully, frequency will increase as TMM pack away their beach towels and knotted hankies for another year. But for now we would just like to say that if the rest of peripheral Europe are taking the crisis anywhere near as seriously as Greece is, then the whole place is f%"ked. We have just found local prices in Greece exceed high-end London supermarkets with even olives and olive oil more expensive. Greek super yachts happily ply the waters and the bars are still full of locals paying positively Alpine prices for food and beverages in establishments where the plumbing is still Third World. At current prices, they shouldn’t be surprised if tourists start to choose Antibes or the Maldives over Poros. But as far as the bars, restaurants and supermarkets are concerned its either "what crisis" or they are taking the "rip 'em while you can" policy. The number of bleak concrete quay wastelands with big blue signs proclaiming EU funding from unification/friendship funds is depressing and you can understand German concerns as to when the subsidies will stop.. if ever. (A good article in the FT on how German / Peripheral imbalances are not diminishing through the normal routes.)
All this adds weight to the feeling that September's seasonality sell offs are this year going to return to the Euro zone, just when all eyes are pinned on the US.
But for now we leave you with a postcard we were asked to pop in the post to Germany.