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Greece ‘No’ Vote Hits Euro to U.S. Futures Amid Flight to Safety

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By Emma O’Brien and Benjamin Purvis. Greek voters’ rejection of austerity coursed through financial markets Monday, as Asian stocks and U.S. index futures slipped with the euro and crude oil amid flight to the safest assets. Chinese index futures jumped after the country stepped up efforts to arrest an equity selloff.

The MSCI Asia Pacific Index lost 1 percent by 10:10 a.m. in Tokyo, with Japanese and Korean gauges falling more than 1 percent. Standard & Poor’s 500 Index futures slid 1.2 percent. The euro was down 0.6 percent versus the dollar, paring an earlier drop of as much as 1.3 percent as high-yielding currencies declined while the yen advanced. Treasuries and Asian bonds jumped with credit risk. U.S. oil tumbled 3 percent. FTSE China A50 Index futures rallied 6.3 percent.

Greeks defied opinion polls predicting a tight race, with more than 60 percent voting to reject austerity measures required to win another bailout package. The result means Greece’s exit from the currency union is now the base-case scenario, JPMorgan Chase & Co. said, with European leaders calling for a summit. China suspended initial public offerings and brokerages pledged to buy shares in weekend measures aimed at halting the steepest plunge in local stocks since 1992.

“It’s definitely risk off, markets don’t like uncertainty,” Kumar Palghat, managing director of Kapstream Capital Ltd., which oversees the equivalent of about $6.9 billion in Sydney, said in a Bloomberg TV interview. “The question from the market is, is this going to continue or are they going to come up with a solution? China is more important to Asia than Greece is, but remember we live in a globalized world, so what happens in Greece affects other countries and other regions as well” . . .

With all of the vote counted, support for the “no” camp was at 61 percent, while 39 percent voted “yes” to the demands, according results on the Greek Interior Ministry website. A poll commissioned by Bloomberg had 43 percent voting “no” and 42.5 percent intending to accept creditors’ conditions. The survey had a three percentage-point margin of error. (Read more from “Greece ‘No’ Vote Hits Euro to U.S. Futures Amid Flight to Safety” HERE)


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Sugar, Flour, Rice: Panicked Greeks Stock up on Essentials

By Pauline Froissart. Greeks were hoarding cash and food Saturday amid mounting fears the economy could collapse, cracking open their wallets only to stock up on essentials and stripping supermarket shelves in the process.

Mothers, elderly men and university students were spotted pushing heavily overloaded trolleys or coming out of shops weighed down by bags of food, with essentials such as sugar, flour and pasta top of the list.

In the well-off area of Glyfada in Athens residents appeared to have panicked, thrusting everything from vast rolls of toilet paper to multiple packs of lentils into their carts.

“Most people are buying food now because they fear the worst,” said Andreas Koutras, a 51-year old who works in finance, referring to a referendum Sunday on Greece’s bailout which could seal its financial fate.

AFP photographs showed rows upon rows of empty shelves in supermarkets and shoppers said they were taking no chances, snapping up canned milk, chocolate and rice — anything non-perishable that could be stored. (Read more from this story HERE)

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All Greek Banks Closed Today, Euro Nose-Dives

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By Associated Press. Greece’s five-year financial crisis took its most dramatic turn to date Sunday, with the cabinet deciding, after an 8-hour session, that Greek banks would remain shut for six working days and restrictions would be imposed on cash withdrawals.

The Athens Stock Exchange would also not open on Monday, financial sector officials confirmed.

A decree published in the official Government Gazette stipulates banks will not open Monday morning and will remain closed through Monday, July 6. The finance minister could decide to short or extend that period.

Withdrawals from ATM with credit or cash cards will be capped at 60 euros ($66) daily. The decree said ATMs would be working at the latest 12 hours from its publication, meaning cash machines would open by early afternoon, at the latest.

Web banking transactions will be mostly free, allowing people to pay their bills online. However, they cannot move money to accounts abroad. (Read more from “All Greek Banks Closed Today, Here’s Why” HERE)

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Euro, Stocks Plunge as Greece Seen on Course to Default

By Reuters. The euro fell almost 2 percent and share prices tumbled across Asia on Monday as Greece looked set to default on its debt repayment this week, forcing Athens to impose capital controls to halt bank runs.

With the prospect of Greece being forced out of the euro in plain sight, the common currency fell as much as 1.9 percent to $1.0955 , its lowest in almost a month, and last stood down 1.4 percent at $1.1007.

Against the yen, the common currency dropped more than 3 percent to 133.80 yen, a five-week low.

U.S. stock futures dived almost 2 percent at one point to hitting a three-month low, and last traded down 1.6 percent. (Read more from this story HERE)

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Greece Says That It Will Default Next Week, May Spark Major International Financial Crisis

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Photo Credit: The Economic Collapse The Greek government says that a “moment of truth” is coming on June 5th. Either their lenders agree to give them more money by that date, or Greece will default on a 300 million euro loan payment to the IMF. Of course it won’t technically be a “default” according to IMF rules for another 30 days after that, but without a doubt news that Greece cannot pay will send shockwaves throughout the financial world. At that point, those holding Greek bonds will start to panic as they realize that they might not get paid as well. All over Europe, there are major banks that are holding large amounts of Greek debt and derivatives that are related to the performance of Greek debt. If something is not done to avert disaster at the last moment, a default by Greece could be the spark that sets off a major European financial crisis this summer.

As I discussed the other day, neither the EU nor the IMF have given any money to Greece since August 2014. So now the Greek government is just about out of money, and without any new loans they will not be able to pay back the old loans that are coming due. In fact, things are so bad at this point that the Greek government is openly warning that it will default on June 5th…

Greece cannot make an upcoming payment to the International Monetary Fund on June 5 unless foreign lenders disburse more aid, a senior ruling party lawmaker said on Wednesday, the latest warning from Athens it is on the verge of default.

Prime Minister Alexis Tsipras’s leftist government says it hopes to reach a cash-for-reforms deal in days, although European Union and IMF lenders are more pessimistic and say talks are moving too slowly for that.

. . .What is happening in Greece is exceedingly important, and it is time for all of us to start paying attention. (Read more from “Greece Says That It Will Default Soon, and Moody’s Warns of a ‘Deposit Freeze'” HERE)

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European Crisis: Half of HIV Infections in Greece Are Self-Inflicted

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Photo Credit: REUTERSA recent World Health Organization report paints an alarming picture regarding the health implications of Europe’s economic crisis, including how some Greek citizens are infecting themselves with HIV in order to receive 700 euros in government benefits.

The findings highlight how startling levels of unemployment and severe, mandated government cutbacks are trickling down to European citizens.

The September WHO report concludes that the economic crisis that began in 2008 has “exacerbated” health problems in Europe and “exposed stark social and economic inequities within and between countries.”

Greece has been among Europe’s hardest-hit, with its debt crisis causing the country’s economy to shrink and nearly knocking it out of the euro zone entirely.

According to the WHO report, suicides soared by 17% in Greece between 2007 and 2009 and then another 25% in 2010. As the crisis deepened in the first half of 2011, suicide attempts surged 40%.

Read more from this story HERE.

Greece Starts Firing Civil Servants for First Time in a Century

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Photo Credit: John KolesidisPushed by its European creditors amid its crippling economic crisis, Greece began this week to do something it hasn’t done in more than 100 years: fire public-sector workers en masse.

Following weeks of tough negotiations with its lenders – the “troika” of the International Monetary Fund, the European Union, and the European Central Bank – the Greek government started laying off public-sector workers in an effort to implement the austerity that the troika has demanded. The first two civil servants were let go on Wednesday under a new law that speeds up the process – one, a policeman, for stealing debit cards, and the other for 110 days of unexcused absence.

The mass layoffs were announced last week in a televised address by the Greek prime minister himself, Antonis Samaras. Despite the massive unemployment in Greece, the goal of the government has become the laying off of 180,000 civil servants by 2015. “This is not a human sacrifice,” said Prime Minister Samaras. “It’s an upgrading of the public sector and it’s one demand of Greek society.”

Samaras though, promised new positions to be created: “An equal number [of employees] will be hired on merit,” he added.

A century without layoffs

Civil servants’ jobs have been protected by a law that dates back to the 1880s, which became enshrined in the century-old Greek constitution. Until that provision became law, each newly elected government would sack the civil servants hired by the previous government to replace them with their own party members, creating civil unrest and a dysfunctional state.

Read more from this story HERE.

Child Hunger Is Exploding In Greece – And 14 Signs That It Is Starting To Happen In America, Too

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Photo Credit: Mens News Daily The world is heading into a horrific economic nightmare, and an inordinate amount of the suffering is going to fall on innocent children. If you want to get an idea of what America is going to look like in the not too distant future, just check out what is happening in Greece.

At this point, Greece is experiencing a full-blown economic depression. As I have written about previously, the unemployment rate in Greece has now risen to 27 percent, which is much higher than the peak unemployment rate that the U.S. economy experienced during the Great Depression of the 1930s. And as you will read about below, child hunger is absolutely exploding in Greece right now. Some families are literally trying to survive on pasta and ketchup.

But don’t think for a moment that it can’t happen here. Sadly, the truth is that child hunger is already rising very rapidly in our poverty-stricken cities. Never before have we had so many Americans unable to take care of themselves. Food stamp enrollment and child homelessness have soared to brand new all-time records, and there are actually thousands of Americans that are so poor that they live in tunnels underneath our cities.

But for millions of other Americans, the suffering is not quite so dramatic. Instead, they just watch their hopes and their dreams slowly slip away as they struggle to find a way to make it from month to month. There are millions of parents that lead lives that are filled with constant stress and anxiety as they try to figure out how to provide the basics for their children.

How do you tell a child that you can’t give them any dinner even though you have been trying as hard as you can?

Read more from this story HERE.

Anti-Austerity Strike To Bring Greece To A Standstill

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Photo Credit: John Kolesidis Greek workers walk off the job on Wednesday in a nationwide anti-austerity strike that will disrupt transport, shut public schools and tax offices and leave hospitals working with emergency staff.

Greece’s two biggest labor unions plan to bring much of the near-bankrupt country to a standstill during a 24-hour strike over the cuts, which they say only deepen the plight of a people struggling to get through the country’s worst peacetime downturn.

Representing about 2.5 million workers, the unions have gone on strike repeatedly since Europe’s debt crisis erupted in late 2009, testing the government’s will to implement necessary reforms in the face of growing public anger.

“The (strike) is our answer to the dead-end policies that have squeezed the life out of workers, impoverished society and plunged the economy into recession and crisis,” said the private sector union GSEE, which is organizing the walkout with its public sector sister union ADEDY.

“Our struggle will continue for as long as these policies are implemented,” it said. Prime Minister Antonis Samaras’s eight-month-old coalition government has been eager to show it will implement reforms it promised the European Union and International Monetary Fund, which have bailed Athens out twice with over 200 billion euros.

Read more from this story HERE.

Congressman Warns of Greece-Like ‘Day of Reckoning’ to Hit America Without Course Correction

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photo credit: gage skidmoreBoth Republicans and Democrats are going to have to do that [turn the country around],” Fleming said. “What I fear is we’re going to be too late, and we’re going to run into a Greece-like situation,where we have riots and unemployment levels are up around 11 percent. That’s what we’ve been trying to avoid.”

Ultimately, Fleming said he thinks President Obama should be the one who compromises with House Republicans – not the other way around.

“I think that we should not compromise,” he said. “We need to hold to what’s important, because the real danger for this country is our debt and deficit and the impact it’s having on the economy. Just because the president was re-elected – and certainly many of the things that he believes in and wants to do, the private sector and economy doesn’t agree with that. We just had a number of companies announce layoffs as a result of Obama being re-elected. The stock market didn’t take the news very well. I’m getting calls already from private business owners telling me that they are pulling their fins in, they’re reducing their debt, and they’re just going to go on cash flow – they’re not going to grow or invest or hire.”

Fleming is upset with House Speaker John Boehner for promising via an interview with ABC News’ Diane Sawyer that the House GOP will seek a “comprehensive approach” to immigration reform in the wake of Tuesday’s election. (RELATED: Lawmaker rebukes Speaker of the House John Boehner for making promises to the media)

Fleming said he’s upset Boehner made such a promise without talking to House Republicans about it first. Obama raked in the Hispanic vote en masse over Mitt Romney and Republicans on Tuesday.

Read more from this story HERE.

Merkel: Euro Crisis Will Last at Least Another 5 Years; Shipments of Life-Saving Drugs to Greece Halted

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Merkel: Euro Debt Crisis to Last at Least Five More Years

By Associated Press. German Chancellor Angela Merkel says Europe’s sovereign debt crisis will last at least five more years.

Merkel says the continent is on the right path to overcome the crisis but “whoever thinks this can be fixed in one or two years is wrong.”

Two years ago some heavily indebted European countries were dragged into the turmoil that first gripped global financial markets in 2007.

Greece in particular has been struggling with the austerity conditions imposed on it by countries such as Germany. Read more from this story HERE.

Germans stop shipment of life-saving cancer drug to Greece as Euro crisis deepens

By the Daily Mail Reporter. The spiralling decline of the Greek economy took an even more brutal turn today with the news that German pharmaceuticals firm Merck KGaA has ceased deliveries of a life-saving cancer drug to Greek hospitals.

The drug, Erbitux, is an effective treatment for both colorectal cancers and head and neck cancers

A number of industrial giants have shied away from accepting orders from the crisis-hit Greeks.

Another German-based pharma giant, Biotest, suspended shipments to Greece because of unpaid bills in in June of this year.

Matthias Zachert, Merck’s chief financial officer, told the German newspaper paper Boersen-Zeitung that publicly-owned hospitals in several euro-zone countries had been struggling to pay their bills. Read more from this story HERE.

Eurozone Unemployment Hits Record High While, At the Same Time, One Eurozone Country Has Record Low Unemployment

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The eurozone unemployment rate was 11.4% in August, up from 10.2% last year. Data from the EU statistics agency Eurostat estimated that 25.5 million men and women were out of work over the period, 18.2 million of whom were in the eurozone.

Compared with the previous month the number of unemployed people in the EU rose by 49,000 and in the eurozone by 34,000.

The overall unemployment rate in Spain has reached 25.1%, while the latest data from Greece for June shows a figure of 24.4%. The outlook is far more optimistic in Germany, however, where just 5.5% of people are out of work.

The EU announced on Monday that it will reallocate an extra €2.7bn of structural funds to tackle youth unemployment, on top of the €7.3bn already identified.

The reallocation is part of the EU’s “Youth Opportunities Initiative” which saw pilot programmes set up in the eight EU member states with the highest levels of youth joblessness: Greece, Spain, Portugal, Italy, Lithuania, Slovakia, Ireland and Latvia.