July 2015 – GREECE – Greek bank reserves are being rapidly depleted, which could plunge the over-indebted country into economic collapse. As creditors stopped funding the Greek banks, the country’s banking system has been facing a severe liquidity crisis. Even with the 60 euro (USD$66.00) daily withdrawal limit, bank machines are running dry. “We are reliably informed that the cash reserves of the banks are down to 500 million euros (USD$550 million),” said Constantine Michalos, head of the Hellenic Chambers of Commerce. “Anybody who thinks they are going to open again on Tuesday is day-dreaming. The cash would not last an hour.” (Source: The Telegraph, July 2, 2015.)
People in Greece have been struggling over the week after banks shut their doors on Sunday. With a daily withdrawal limit of 60 euros (USD$66.00) at bank machines, individuals are having a hard time getting by. If banks do not open, analysts believe economic activity will come to a halt. People will not have enough money for daily activities such as rent, utilities, or groceries. Businesses will not be able to pay for their supplies or their employees.
If you think what’s happening in Greece could never happen in America, think again. Only a few years ago, we came within hours of a full-blown stock market crash. In fact, it’s starting to happen again. –Profit Confidential
Finance Minister resigns: Greece’s outspoken finance minister has resigned, hours after voters backed his call to reject creditors’ demands for more austerity in a referendum. Yanis Varoufakis said it was felt his departure would be helpful in finding a solution to the country’s debt crisis. Eurozone finance ministers, with whom he repeatedly clashed, had wanted him removed, Mr Varoufakis explained. Meanwhile, global financial markets have fallen over fears that Greece is heading for an exit from the euro. The European Central Bank (ECB) is to discuss whether to raise its emergency cash support for Greek banks, which are running out of funds and close to collapse.
Greece’s Economy Minister, Georgios Stathakis, told the BBC the ECB had to keep Greek banks alive for seven to 10 days so that negotiations could take place. But even if the ECB continued to freeze the Emergency Liquidity Assistance (ELA) at €89bn (£63bn; $98bn), the current cash withdrawal and transfer restrictions on banks could stay in place until Friday, without any of them collapsing, he said. –BBC