Greece Votes "No" in Reforms Proposal

by Vasilis Chronopoulos · July 7, 2015

It is the morning after a historic referendum in Greece. The people have voted against a reforms proposal by the country’s European partners, and it is still unclear what the consequences of this vote will be. One thing that has definitely not changed since last night is the people lining up at the ATMs. But it will soon. By the end of the day, banks are expected to run out of cash.

Recognizing that Greece won’t leave the currency union, the government has formed a new negotiating team, which will be sent to Brussels to resume talks with the country’s creditors. What will be negotiated there will be the terms of a third bailout program. A third memorandum. Even in the best-case scenario, those terms will be harsh and will probably prompt further austerity measures in Greece. However, Greece will secure further funding—which it desperately needs—from its partners, and might also achieve some debt relief.

About Vasilis Chronopoulos

Vasilis is a 5 year veteran of Greek SOF having served in 35th Mountain raiders battalion and in the Zeta amphibious raiders battalion. Now he is a freelance security contractor primarily working in the maritime security industry. Follow him on Twitter @billxronopoulos

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YankeePapa
. ...Very costly dithering... . http://www.msn.com/en-us/news/world/special-report-the-man-who-cost-greece-billions/ar-AAdezg3 . -YP-
YankeePapa
. http://www.miamiherald.com/news/nation-world/world/article27866521.html . ...So the Leftist Greek government has suddenly decided to raise money by privatization... In the best case scenario it can reduce the debt... reduce the bureaucracy... and help get the non-government economy going. . ...Or it can be like in Russia where KGB thugs and their cronies got a lot of inside deals. Greece is already drowning in corruption. Unless there is some sort of blue ribbon pristine panel that can be formed and pass muster with the electorate... Greece can look forward to valuable assets being sold either well below cost... or on (what should be) unacceptable terms. Kickbacks to go to individuals and/or political parties... At the end of the day Greece hardly any better off. . ...Do the buyers get screened, and if so, who does it? Do they pay up front or do they (in effect) issue "junk bonds..." and "pay" with those? The opportunity for corruption followed by disaster is enormous. . -YP-
Recon6
YankeePapa ahhh yes, I can recall 'the good old days' when the interest on loans was Deductible !! Never use your own money, borrow, borrow, and write off the interest... it was a great time....6
YankeePapa
. ...Word is out... the Greek government just blinked. . http://www.msn.com/en-us/news/world/greece-beats-deadline-offers-reform-plan-that-yields-to-lender-demands/ar-AAcMp7I?ocid=mailsignout . ...Of course the United States is a debtor nation. But I am reminded of films of eras gone by in places like Paris and New Orleans where "gentlemen" of quality ran up massive debts (most often with tailors...) The creditors were so overextended that they feared to go to court... or even cut off future purchases... endlessly hoping that someday the debt would be made good. . ...Old rule... People that are millions of dollars in debt never miss a meal. The U.S. (for now) gets "favored debtor" treatment. What are the Chinese going to do...sell the debt? To whom... and at what kind of a massive markdown? . -YP-
YankeePapa
Minou_Demimonde YankeePapa LauraKinCA , . "... It’s like when people consolidate their debt and suddenly have extra money, and then spend it and get into more debt..." . ...Quite so. Many years ago in Seattle I worked for a decade as a credit officer at firm's Corporate Credit offices (before the credit office moved to Denver for tax reasons...) . ...Following company policy I almost never declined a consolidation offer from a legitimate consolidation firm (non-profit or for-profit... though if speaking to customers considering going... always steered them toward non-profit outfits...) . ... Firms knew better than to present plan to us re clients who were hopelessly over their heads and needed to see a bankruptcy attorney. . ...I did, however, turn down a number where shortly before (or sometimes after!) a counseling session the couple went out and charged their accounts to the max... then expected us to go along... . -YP-