And so Greece leaves the euro

In the report about the referendum and so on:

Greece’s Alpha Bank stopped all online transactions according to its website on Friday night.

At very best the bank is illiquid as a result of the run. Almost certainly insolvent. And there’s not enough euros around, even with a deal, to recapitalise those banks (I assume the others will follow soon enough).

Buh bye!

17 thoughts on “And so Greece leaves the euro”

  1. But I thought Ritchie and his mates told us that banks just created money at a touch of an electronic button, and then lent it limitlessly to governments.

    How could they run out, if that was the case?

    It’s all neoliberal sophistry and witchcraft I tell you…

  2. So Much for Subtlety

    And there’s not enough euros around, even with a deal, to recapitalise those banks

    I wonder what will happen next. Going on my general, oft stated theory that the Greeks are feckless and the Stalinist government is made up of idiots, I wonder what the odds are that the Greek Communists nationalise all the banks – and continue to print Euros? Assuming they have the ability to print them that is. They may be made in Dortmund for all I know.

    Then it will be up to the rest of Europe to accept those new Euros or not. Not would be my guess.

    However it would give Syriza what they want – an end to capitalism and control of the Commanding Heights of the Economy.

  3. Surreptitious Evil

    Doesn’t Greece have “Commiserating Depths” rather than “Commanding Heights”, at least as far as the economy goes?

  4. SMFS. “the Stalinist government is made up of idiots”. For a moment, I hoped you were talking about Brussels. I don’t think Syriza have conducted a genocide in Boetia yet, so they can’t be that Stalinist.

  5. Surreptitious Evil

    It’s not “true socialism”(tm) until you have eliminated x thousand of your enemies the enemies of the people and had y% of the population die in a trivially avoidable famine?

  6. You have to admire the sense of irony – Greece leaving the euro because everyone wants euros.

  7. Dangerous economic waters. Brought about–once again–by political and bureaucratic scum.

    At least it is the first step to the destruction of the EU.

  8. So Much for Subtlety

    Surreptitious Evil – “Doesn’t Greece have “Commiserating Depths” rather than “Commanding Heights”, at least as far as the economy goes?”

    I don’t know. I always assumed Marxists are doing it to get back at someone who bullied them in school or something. It doesn’t appear to be for the groupies.

    So I guess you have to look at the alternatives. Tsipras can run a Greece run into the ground. Or he can be a school teacher. What else is he fit for? You can see the appeal of commanding those heights.

    Or maybe, like Beria, he just likes school girls.

  9. What are the chances there is a new government in Greece by the end of the year? Not a better one.

  10. From the Telegraph article:

    “Alexis Tsipras called the shock vote, to be held on on July 5, having spent Friday night holed up in an emergency meeting with his cabinet.

    The question to be put before voters is whether or not the country is willing to submit to the conditions being demanded by the International Monetary Fund, European Union and European Central Bank.”

    1. ‘Shock vote’ – I do wish they wouldn’t write like tabloids.

    2. Ok, so they’re asking the Grek voters what they think, presumably because the people matter. What about the rest of the people of the euro on the other side of it? Anyone going to bother asking them?

    3. Does anyone trust a hard leftist party (or any truly ideologically motivated party) to receive anything other than the result it wants?

    The whole thing is a sham aimed at future positioning so that they can blame anyone but Tsipras and Syriza.

  11. If that’s what’s happened to Alpha Bank I’d hate to have an account with Beta Bank.

    A vote seems pointless unless we actually get told what the proposals being voted on are.If the vote is to accept the creditors’ position, then by rights Tsiparas should resign and call a new general election. What are the chances?

    And I still don’t see how this solves the problem (other than short-term), absent an enormous write-down. What we surely need is a comprehensive reform package in exchange for elimination of the debt. Not this drip-feed of half-baked measures, as if VAT and pension changes are going to make any difference. Actually I am with Tsiparas that they will probably make things worse. Cutting demand and raising barriers when you already have a sclerotic supply-side hasn’t worked and won’t work in future either.

  12. They are asking for a referendum because the only way out is to do the exact opposite of the manifesto for which they were elected. So this legitemises their position v the voters who may as well have elected a corrupt right wing party who would kow tow to the EU. Which is what Tsipsy has to do. Like all modern politicians, he’s appalled at the idea of actually running a country – a whole country, for God’s sake! – on his own.

  13. Good.

    The Greeks early on could have worked to sort their problems out. Instead, they’ve fucked around with the likes of the IMF and made everyone nervous.

  14. Ha! You keep getting my hopes up, but when I check it out, they’re still only threatening to leave.

    You know… This time I mean it! Give me a billion euros or I’m fucking out of here!!

    Yes dear. Of course dear. But really. This is absolutely the last time.

  15. Hard to see this one playing out into anything but Grexit now.

    The Greek side isn’t going to fold before their referendum, and it’s unclear which side is likely to win that (if it ever even gets held).

    Meantime, unless the Germans have a sudden change of heart and lend them a load more, the Greeks default on quite a lot of their loans on Wednesday.

    In addition, the cash machines are going to run out the minute the ECB turns off emergency bank liquidity, but the ECB is already facing losses in the order of 90bn euros if the Greek banks fold, and that number is rising by the minute as the Greeks seem to have finally gone for a full blown bank run.

    All in all, I can’t see the either side backing down before next weekend, and I can’t see Greece managing to hold itself in the euro once all the money taps get turned off on Tuesday,

    They’ve kicked the can a very long way – this is starting to look very much like the end of the road.

    The only thing that’s been puzzling me is why the Greeks have taken so long to go into bank run mode. If I lived there I’d have been stacking every Euro I had under the mattress , and I’d have done that months if not years ago – but clearly not all that many of them have or we wouldn’t be seeing a bank run now.

  16. I find it amusing, the “hard line communists” of Syrza are having a democratic referendum on whether to accept the proposed terms. Whilst the “democracies” of the rest of the Euro area wouldn’t dream of letting the matter of whether their money is used to bail out Greece anywhere near their electorates.

    Or are we redefining communism & democracy, these days?

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