Dennis Gartman: Greece Deal Will Only Last Until Next Election

“Greece’s purported deal with its creditors will last only until a new government takes over following the spring elections, hedge fund manager Dennis Gartman said Tuesday.

CNBC Dennis Gartman

While investors hoped the deal, valued at 130 billion euros ($172 billion) would bring stability to the debt-plagued nation, Gartman said the provisions — particularly those focused on reducing the ratio of debt to gross domestic product  , as well as the austerity measures imposed on Greece — have little chance of being met.

“All the authorities have been able to do is delay default by a few weeks, perhaps a few months at best,“ Gartman wrote in his investor newsletter. “Greece will default, but perhaps not under the present government in power.”

Sharp cuts in the minimum wage, health care, and pensions, among other things, never will be tolerated in the Greek street, he added. Greeks go to the polls in two months to decide their government’s future. Recent polls show leftist parties opposing the bailouts rising in popularity.

“A new government is going to come to power following elections that shall take place sometime this spring, and if anyone anywhere believes that the next Greek government shall do anything other than abrogate all the agreements made with the ‘troika,’ then we have a bridge we’d like to sell them at a very high price,” Gartman said….”

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