Greece moved to check the growing strains on its crippled financial system on Sunday, closing its banks and imposing capital controls that brought the prospect of being forced out of the euro into plain sight.Guess the Germans aren't willing to support the Greeks any more. Yeah, the world financial markets may be headed into a panic mode. But love wins, or something.
After bailout talks between the leftwing government and foreign lenders broke down at the weekend, the European Central Bank froze vital funding support to Greece's banks, leaving Athens with little choice but to shut down the system to keep the banks from collapsing.
Banks are expected to be closed all next week, and there will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday. Capital controls are likely to last for many months at least.
Monday, June 29, 2015
Grexit, stage left
Here it comes:
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2 comments:
why would the world markets panic? i can see why greece would, and maybe italy and a few others. if anything, it may come as a warning to those traveling the same road.
the eurozone cant last much longer though. might be a good time to sell off.
World markets are panicking because the Greeks chose to say their debt is worthless, and everyone is wondering who else will follow suit.
Since Greece is choosing a 100% pay cut for government workers instead of a 10%, it will be interesting to see how things end up. Blowback could be fierce on this one if the more sane parties make the case well.
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