Greece is the perfect example of leftist policies bankrupting the economy
Greece Enters Chaos As Default Looms, Banks Close
Greece lurched into chaos Monday after negotiations between its government and international creditors deteriorated further, setting up a stark test of European officials’ control over financial-market contagion and Athens’ ability to survive the brinkmanship it initiated.
The country faces a turbulent week ahead after Prime Minister Alexis Tsipras late last week called a surprise referendum vote that would in effect decide whether his country stays in the eurozone. Athens also confirmed it won’t make a 1.55 billion euro ($1.73 billion) payment to the International Monetary Fund Tuesday. Its current bailout package will end Tuesday, creditors insisted.
Financial markets around the world tumbled Monday. Standard & Poor’s cut Greece’s sovereign rating one notch further into junk territory and said there’s a 50% chance of a Greek exit from the euro, or “Grexit.”
‘No Road Map’
“The market has accurately assessed that the risk of contagion is much less,” said Diane Swonk, chief economist for Mesirow Financial. “But we’re still not at an end and there’s still the chance that they could leave the euro.”
“There is no road map for that,” she added.
Greek banks and its stock market were closed Monday and for the rest of the week, and a daily limit of 60 euros was imposed on ATM withdrawals. Meanwhile, the government prepared to hold a referendum on whether Athens should accept creditors’ final proposal, with Tsipras urging his citizens to vote “no” even as European officials appealed for an affirmative vote.
Creditors repeated that they’re willing to keep talking with Athens, though German Chancellor Angela Merkel said she still expects Greece to implement reforms, signaling a stepped-up sense of acceptance of a Grexit.
Tsipras is under orders from his Kremlin handlers to create as much trouble as possible for the Eurozone.