Talks between Greece and its creditors have broken down over the weekend and stock futures are tanking. The Greek stock market, and Greek banks, will be closed for the next week…. Could anyone have possibly seen this coming…?
Tsipras takes Greece to the edge of the precipice (Financial Times)
The FT takes a harsh view of Mr Tsipras' political tactics while also criticizing the creditors' uncompromising position and the political leadership in the eurozone. The result: an unfortunate, unnecessary standoff.
The threat to the euro has always been a soluble problem cloaked in an aura of political impossibility. But with each day, both sides seem more willing to indulge in blame shifting rather than constructive engagement. Greece now stands on a precipice. It is increasingly hard to detect the path of retreat.
Greece imposes capital controls as crisis deepens (Reuters)
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.
Stocks are getting crushed (Myles Udland, Business Insider)
The drop in stocks comes after a wild weekend of headlines out of Greece that saw talks between Greece and its creditors break down, Greece call a referendum vote on the latest bailout terms for next Sunday, while Greek banks and the Athens stock exchange have been closed for at least the next week.
Greece also has a €1.6 billion payment due to the IMF on Tuesday, which it appears they will miss.
FinViz
Brace for a Sell-Off: Here's how the markets will respond to this weekend's debacle in Greece (Mohamed El-Erian at Business Insider)
Given developments over the last 36 hours — including the announcement of a Greek referendum in the midst of a massive setback to the country’s relations with its European partners and the IMF — financial markets will open on Monday realizing that Grexit is no longer unlikely or just a possibility; it is now probable.
That same day, lines that started forming on Saturday as citizens withdrew money from ATMs will develop into heavy bank-deposit withdrawals and accelerated capital flight out of Greece. The government will have no choice but to seriously ponder the imposition of capital controls. It may also need to consider some types of restrictions on normal banking activities. And this would be just the first set of disruptions in what promises to be a precarious week for the country that includes defaults on debt and suppliers.
[Picture: REUTERS/Fred ProuserMohamed El-Erian]
Ignoring Tsipras Plea For Calm, Greeks Storm ATMs, Stores, Gas Stations (ZeroHedge)
Just a few hours ago Greek PM Tsipras addressed his nation imploring then to "remain calm" and reassuring them that their "deposits were safe." It appears the Greeks did not believe him. Many were wondering where the Greek bank lines were for the past several months. Turns out the local depositors were merely waiting until just after the last minute to withdraw their funds… horde gas… and stack food. Greece, it appears is Venezuela – the new socialist paradise.
Tsipras implored: "Keep Calm…."
Markets are opening and the euro is getting slammed (Myles Udland, Business Insider)
We've got our first look at markets after a weekend full of Greek drama, and to start things off the euro is getting slammed.
In early trading Sunday night, the euro dropped more than 1.5% against the US dollar to below $1.0979…
FinViz
Over the weekend, we were bombarded with news out of Greece, but most significantly we learned that on Monday, Greek banks will be closed. This "bank holiday" will reportedly be in effect through July 5, when Greece has scheduled a referendum to vote on the latest bailout proposal from its European creditors.
And while banks are closed in Greece, the stock market will also be closed.
In the meantime, Greece's financial stability board has recommended that Greece limit cash withdrawals to 60 euros per day after Monday's holiday.
KRUGMAN: 'I would vote no' (Myles Udland, Business Insider)
"I would vote no, for two reasons."
Nobel-winning economist Paul Krugman says he would vote "no" on Greece's upcoming referendum on whether to accept the terms of a bailout put to it by its creditors.
Writing on his blog for The New York Times, Krugman explains that he would vote no because: one, because leaving the euro would be better than continuing the same program that has been in place for the last 5 years; and two, because voting yes on the referendum would essentially be a vote to replace Greece's Syriza government.
[Picture: Jeff Zelevansky / Getty]
Wall Street traders are so tired of the Greece news they made up a new word to complain about it (Business Insider)
And now, traders have come up with a new word to describe just how laboring following all of the "will they, won't they" headlines really is: Gretigue.
In an afternoon email on Friday, Rich Barry at the NYSE wrote that Greitgue is simply defined as "Fatigue of all things Greek."
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Picture via Zero Hedge
