While some people (though clearly not the markets), seem to be relieved by the results of the Greek vote this weekend in which the "conservative" New Democracy party ended up being the largest party in parliament, there is no reason to celebrate just yet.
First, the New Democracy Party will need to rely on their historic rivals in the Panhellenic Socialism Movement (PASOK) to rule, so there is no guarantee that a government can even be formed or that it will be stable. PASOK is already making trouble by demanding that SYRIZA, the second largest party in parliament be a part of any government. As a reminder, SYRIZA is a coalition of a bunch of whacko communist and socialist parties (including Trotskyite and Maoist parties) with such names as Anticapitalist Political Group, International Workers' Left, Communist Organization of Greece and Renewing Communist Ecological Left.
Second, what I would refer to as the Authoritarian parties, SYRIZA, the Communist Party of Greece (KKE) and the fascist Golden Dawn (XA) gained a whopping 38.3% of the vote. That is up 6% since the elections just 1 month ago. Needless to say the trajectory is quite worrying. Just as a frame of reference, the authoritarian parties in Germany (the Nazi and Communist parties) gained 31.4% of the vote in the 1930 elections. If the Greeks think things can't get any worse, the way things are going they will be looking back at 2012 with relative nostalgia.