Greeks defy Europe with overwhelming referendum 'No'

Donatello said:

@Emilly David what do you think? Greece will be forced to exit the Eurozone/EU?

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A no vote is a vote that will ultimately lead to the stop with supply of "fresh" Euros. Greek may not be expulsed, but the ECB will simply stop to supply it. Greece will finally be bankrupt and forced to pay with its own currency again. Thus a no vote means economic suicide, until, let's say in some years, the benefits of a weaker currency start to pay off. Greece know about it, they are using it as a “negotiating tool” in talks with lenders.

Greece can leave, its the best option for them. float their own currency again.

As expected..................

Vassnti said:

BTW any Turkish members about now might be agood time to offer to buy the other half of Cyprus i hear Greece will be having a fire sale

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Not so much left to buy

Emilly David said:

A no vote is a vote that will ultimately lead to the stop with supply of "fresh" Euros. Greek may not be expulsed, but the ECB will simply stop to supply it. Greece will finally be bankrupt and forced to pay with its own currency again. Thus a no vote means economic suicide, until, let's say in some years, the benefits of a weaker currency start to pay off. Greece know about it, they are using it as a “negotiating tool” in talks with lenders.

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But their currency has been out of the market for so long? They can't simply print more now and repay........otherwise what's the point of debt? It will kill their spending and price of goods.

The most iresponsable nation ever....

flamer84 said:

The most iresponsable nation ever....

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EU in a nutshell.

When there is referendum here in England I want out of EU. Too many freeloaders.

Menace2Society said:

EU in a nutshell.

When there is referendum here in England I want out of EU. Too many freeloaders.

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Last i've heard you'll have it in 2017.

Emilly David said:

A no vote is a vote that will ultimately lead to the stop with supply of "fresh" Euros. Greek may not be expulsed, but the ECB will simply stop to supply it. Greece will finally be bankrupt and forced to pay with its own currency again. Thus a no vote means economic suicide, until, let's say in some years, the benefits of a weaker currency start to pay off. Greece know about it, they are using it as a “negotiating tool” in talks with lenders.

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I dont think so,Merkel and Hollande will come up with a ''new aid package'',same rules with a new cover.
Greece has to stay in the Eurozone,so that others will not follow(Spain,Portugal,Italy,France).

Vassnti said:

BTW any Turkish members about now might be agood time to offer to buy the other half of Cyprus i hear Greece will be having a fire sale

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Cyprus(sovereign state) doesnt belong to Greece,so no buying nothing.

The liquidity in Greek banks fell from 1 billion euros on Friday night to 0.8 billion euros this morning. I doubt that whatever decision the ECB takes today will be good for Greece. Even if they decide to take little or no action (that's the most likely scenario) the Greek banking system will be just a day closer to collapse.

We'll see who the new Finance Minister of Greece will be and how the Euro-Working Group will go today.

Tomorrow we'll look at what the Eurogroup and the Euro summit will decide.

Things are not looking good at all I must say.

jhungary said:

What the hell is the Greek Thinking??

Can anyone enlighten us a bit?? @As is - where is

Do they really expect a "Better Deal" by saying No? Saying No to the audacity package would most definitely result in Grexit and Bankrupt to follow, can they actually see that??

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good example why a democracy can be a bad thing with so many stupid people on the planet

Azeri440 said:

good example why a democracy can be a bad thing with so many stupid people on the planet

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The most amusing thing is that the idiots think they've safe guarded their economic priviliges.Little do they know that it will be much worse that the austerity plan proposed by the Euro Group.

If somebody deserves to drown,it's Greece right now.

Azeri440 said:

good example why a democracy can be a bad thing with so many stupid people on the planet

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When there are that many stupid people around, that country should not be called a democracy, it should be called an asylum....

Donatello said:

But their currency has been out of the market for so long? They can't simply print more now and repay........otherwise what's the point of debt? It will kill their spending and price of goods.

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They can print their own currency.It would likely have very limited convertibility into Euros outside Greece. It would purely be a means of internal transactions, in all likelihood. It would be very hard for Greece to introduce a viable new currency unilaterally. Baring the complications of actually printing a new note, such a move would likely lead to a collapse in Greece’s international transactions and trade (both for the government and the private sector), would expose the country to litigation risks and trigger a significant destabilization of the banking system.

The only function of such a new currency would be to “tax” parts of the population that would not naturally receive hard currency as part of their payments structure. But that tax would not lead to a natural increase in government receivables as the economy (both the internal and the external economy) would shrink in a downward spiral. The equlibrium outcome of such a situation would be a deep recession that would help build current account surplused despite declining export activity. Once such a recessionary surplused were realized, a natural flow of hard currency would be established, which would help Greek authorities start meeting external financial requirements again. It is a highly theoretical excercise if you ask me.

Rather than hiding and delaying the problem, a decisive and sharp cut off could be painful but that's needed to reset/restart the economy. Next, strike a deal with ECB/IMF to preserve credibility, and it's time to get the economic fundamentals back in order.