Most likely the SPD won only by a plurality, not a majority, so it will be forced to form a coalition government. Hopefully, the SPD and the Greens and other minor leftwing parties are enough to form a majority in the Bundestag. If not, the SPD must form a coalition with the CDU. Ugh.
I think the markets will take it fine. I'm hoping that a left Koalition will roll back the Kohl Government's tax raises and benefit reductions to Sozialversicherung, as Dressler promised in the Bundestag. I think that Cato Institute neo-liberalism is recognized as idiotic in private, so I don't expect much backlash. A couple of bemoaning op pieces in the NY Times maybe.
As for Clinton, my observation is that officially the US Government is *always* for the current leadership, but congratulates the new leader anyhow. Unless he's a communist, of course. Except if he's a communist in a communist country and we don't wish to offend at the moment.
Likely winners visit the President, just like Herod visited Tiberius before Herod assumed the throne of Syria. It's typical empire. Schroeder visited Clinton a short time ago, and there was absolutely no publicity about it. I surmise to avoid offending Kohl.
I'd like to know what they do at these meetings. Does the foreign leader clasp the President's knees and swear eternal loyalty? Arise and clash his shield?
It will make absolutely no difference to the Imperium.
-- I've been able to string more words into fewer ideas than anybody I know, and I'm continuing to do that.
- Alan Greenspan to the Senate Budget Committee, Sept 23, 1998