Sunday's  rejection by Greeks of austerity measures and the 2 dominant political  parties in the Aegean nation  coupled with the inability to form a  coalition government may be the catalyst that ignites the implosion and  death of the Euro Zone.

Germany,  the powerhouse and stabilizer of the EU, is already signaling it has  had enough of what the nation sees as the antics of a petulant child in  Greece's headlong rush to economic ruin. The German state remains  cautious, but skeptical as well of what the election of Socialist  Francois Hollande as President of France and rejection of conservative  Nicolas Sarkozy will do to the EU economy.

Greece  teetered on the verge of political chaos on Monday, with few signs that  any party could form a governing coalition and the prospect of the  nation leaving the eurozone looming increasingly large.

The  political tumult showed that "it's not clear how they can survive within  the euro over the longer term," said Kenneth S. Rogoff, a professor of  economics at Harvard and a former chief economist at the International  Monetary Fund.

"A Greek exit," Rogoff said, "would underscore  that there's no realistic long-term plan for Europe, and it would lead  to a chaotic endgame for the rest of the eurozone."

"Greece is  lurking as a problem, not so much because it could leave the euro and  tear things apart, but because it could before that default and trigger  financial events that could cause the crisis to spread," said Carl  Weinberg, the chief economist at High Frequency Economics, a financial  research group in Valhalla, N.Y.

http://mercurynews.com/nation-world/ci_20569691/instability-rises-coalition-bid-fails-greece?source=rss

Greece  appears to be sinking ever further into a political quagmire after a  first push to form a new coalition government failed on Monday, just one  day after outraged voters chastened the parties that have supported the  country's bailout and austerity measures.

Sunday's election  results revealed clear anti-austerity sentiments from voters, who  toppled the two main parties that have dominated Greek politics for some  four decades, the conservative New Democracy and socialist PASOK.  Instead, many Greeks voted for smaller, more extreme, parties that  oppose the strict requirements levied by the European Union and  International Monetary Fund in exchange for bailouts.

Observers  believe there is little chance of any of the parties being able to put  together a viable coalition government, meaning that new elections may  become necessary.

"Of course the most important thing is that  the programs we agreed with Greece are continued," German Chancellor  Angela Merkel said on Monday.

According to European Commission  spokesman Amadeu Altafaj Tardio, solidarity with Greece is a "two-way  street," and the country must strive for "full and timely  implementation" of its agreement with creditors.

Meanwhile  Greece's financial situation continues to deteriorate. In its fifth year  of recession, with unemployment over 20 percent, the country has agreed  to implement tough new austerity measures in June. It is also scheduled  to receive its next tranche of aid in May, which the IMF is already  threatening not to pay. But without that money, Greece may have to  default on its debts and possibly leave the euro zone.

German commentators on Tuesday predict tough times ahead.

http://spiegel.de/international/europe/german-press-review-of-greek-election-and-political-chaos-a-832026.html#ref=rss

US  markets are also taking notice of the instability in Europe. The Dow  dropped nearly 200 points today before rebounding back to close at 76  points down.

From  the Cornfield, with the US of A being the EU's largest trading partner,  what will a break-up of the EU as it is plunged into economic chaos  mean to the fragile US economy?

What will a Greek default and 180 degree turn around in France mean to the upcoming presidential election in the US?