Socialist Greece near bankruptcy 4

From today’s Washington Post:

In a move sure to increase pressure on Greece’s flailing banks, the European Central Bank (ECB) on Monday decided not to expand an emergency assistance program, raising fears that Greece could soon go completely bankrupt.

The move put a swift crimp on Greek leaders’ jubilation after winning a landslide endorsement from their citizens to reject Europe’s austerity demands and seek a new bailout bargain. Now they must seek a bargain before the money runs out within days, which would likely force them off the euro.

Greek bank heads had said that banks could run out of cash as soon as Tuesday if the European Central Bank (ECB) held firm against them. If the banks fail, it would bring Greece’s economy to a halt, raising the risk of a humanitarian crisis if citizens lost access to food and medicine. …

A senior Greek banking official said after the announcement that Greek banks had been provided with enough money to last until Wednesday evening.

Posted under Economics, Greece, Socialism by Jillian Becker on Monday, July 6, 2015

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This post has 4 comments.

  • liz

    What an ignominious end for a country that started out so great, all those centuries ago. It’s probably a good bet we’ll be in the same mess not too far down the road.

  • The only comment I have for the people of Greece ends with the phrase “…and the horse you rode in on.”

    They voted for this insanity. They agitated for it. They protested in the streets for it. Well, they got it. Democracy is the theory that the voters know what they want and deserve to get it, good and hard – that’s what is happening in Greece.

    • Frank

      I do feel sorry for the Greeks who go out voted on this. They will be suffering along side those who voted for it. But the ECB is doing the right thing – they can’t keep shoveling cash into the bottomless pit.

  • Frank

    Apparently the ECB doesn’t agree with the “Too Big to Fail” concept.