What’s the Worst Case Scenario for the Greek People? As Greeks prepare to go to the polls on Sunday June 17, the fate of the euro and the recovery of the global economy could rest in their hands. But the biggest pain could be felt closer home as the country suffers through a fifth year of recession Many people have been voting with their feet and leaving the country, with austerity measures forcing some to work on half their previous salaries, while pension cuts and an impending energy and health crisis unfold.  For those that remain, unemployment is on the rise at 21.7 percent (youth unemployment is now at 50 percent), and of the people that still have jobs, some have not been paid in months. Greeks that can no longer afford to buy food (let alone stockpile it) are turning to soup kitchens that are providing a temporary solution. The 76 of them in the Athens region alone receive up to 20,000 people a day queuing for food.  In the extreme, the surge in suicide rates among all age groups show that some feel there is no hope. Full Story Photo:Bloomberg via Getty Images
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What’s the Worst Case Scenario for the Greek People?

As Greeks prepare to go to the polls on Sunday June 17, the fate of the euro and the recovery of the global economy could rest in their hands. But the biggest pain could be felt closer home as the country suffers through a fifth year of recession

Many people have been voting with their feet and leaving the country, with austerity measures forcing some to work on half their previous salaries, while pension cuts and an impending energy and health crisis unfold. 

For those that remain, unemployment is on the rise at 21.7 percent (youth unemployment is now at 50 percent), and of the people that still have jobs, some have not been paid in months.

Greeks that can no longer afford to buy food (let alone stockpile it) are turning to soup kitchens that are providing a temporary solution. The 76 of them in the Athens region alone receive up to 20,000 people a day queuing for food.  In the extreme, the surge in suicide rates among all age groups show that some feel there is no hope.

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Photo:Bloomberg via Getty Images

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Europe’s Economic Crisis: What You Need to Know The European economic crisis has been three years in the making, and its outcome is uncertain.  Crushed by debt   and distressed banks, countries like Greece, Spain, and Ireland face ongoing recessions, while Germany and the Netherlands along with members of the International Monetary Fund   , push for austerity measures. There’s more than enough reason for concern. The economy of the European Union, which holds the 17 nations that use the euro currency and 10 others, is a larger economic bloc than the United States or China. To help clarify the situation, here’s a look at what’s happening now, with updates as they happen, and a look at the major players. What You Need to Know
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Europe’s Economic Crisis: What You Need to Know

The European economic crisis has been three years in the making, and its outcome is uncertain. 

Crushed by debt   and distressed banks, countries like Greece, Spain, and Ireland face ongoing recessions, while Germany and the Netherlands along with members of the International Monetary Fund   , push for austerity measures.

There’s more than enough reason for concern. The economy of the European Union, which holds the 17 nations that use the euro currency and 10 others, is a larger economic bloc than the United States or China.

To help clarify the situation, here’s a look at what’s happening now, with updates as they happen, and a look at the major players.

What You Need to Know

Source: cnbc.com

Greece to Exit Euro Greece will leave the euro zone next year and the country’s new currency will “immediately fall by 60 percent,” according to Citi chief economist Willem Buiter. Greek officials have repeatedly stressed that the country will be running out of cash by the end of June, after which it would be unable to make debt payments and pay civil wages and pensions. An election is scheduled for June 17 after inconclusive results of the May 6 polls meant a government could not be formed. Full Story
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Greece to Exit Euro

Greece will leave the euro zone next year and the country’s new currency will “immediately fall by 60 percent,” according to Citi chief economist Willem Buiter. Greek officials have repeatedly stressed that the country will be running out of cash by the end of June, after which it would be unable to make debt payments and pay civil wages and pensions. An election is scheduled for June 17 after inconclusive results of the May 6 polls meant a government could not be formed.

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Source: cnbc.com

Greeks Withdraw Nearly $1 Billion From Local Banks Greek depositors withdrew 700 million euros ($900 million) from the nation’s local banks recently, said President Karolos Papoulias, though the exact timing of the transfer was unclear.  Citing a conversation he had with Greek Central Bank Governor George Provopoulos, Papoulias said “that the strength of banks is very weak right now.” Full Story
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Greeks Withdraw Nearly $1 Billion From Local Banks

Greek depositors withdrew 700 million euros ($900 million) from the nation’s local banks recently, said President Karolos Papoulias, though the exact timing of the transfer was unclear.  Citing a conversation he had with Greek Central Bank Governor George Provopoulos, Papoulias said “that the strength of banks is very weak right now.”

Full Story

Source: cnbc.com

Another One Down? Dutch Government Near Collapse Prime Minister Mark Rutte meet the Dutch queen on Monday afternoon and tendered his government’s resignation after talks on austerity collapsed at the weekend.  The Dutch government’s failure to reach an agreement in talks to achieve tough spending cuts could see ratings agencies cut the country’s prized AAA-rating and nervous investors push up the country’s borrowing costs, and it will also have wider implications for the euro zone as a whole, analysts said on Monday. Full Story
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Another One Down? Dutch Government Near Collapse

Prime Minister Mark Rutte meet the Dutch queen on Monday afternoon and tendered his government’s resignation after talks on austerity collapsed at the weekend.  The Dutch government’s failure to reach an agreement in talks to achieve tough spending cuts could see ratings agencies cut the country’s prized AAA-rating and nervous investors push up the country’s borrowing costs, and it will also have wider implications for the euro zone as a whole, analysts said on Monday.

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Source: cnbc.com

More Greek Deadlines Today and Tomorrow Another day, another Greek deadline: Today, the Greeks have to: 1) Produce written commitments from the two main party leaders that they plan to stick to the austerity program after Greek elections in April; and 2) detail how it will cut an extra 325 million euros ($428 million) euro zone finance ministers insist be cut before the second bailout money — 130 billion euros, or $171 billion — is released. Full Story Photo: Getty Images
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More Greek Deadlines Today and Tomorrow

Another day, another Greek deadline: Today, the Greeks have to:

1) Produce written commitments from the two main party leaders that they plan to stick to the austerity program after Greek elections in April; and

2) detail how it will cut an extra 325 million euros ($428 million) euro zone finance ministers insist be cut before the second bailout money — 130 billion euros, or $171 billion — is released.

Full Story

Photo: Getty Images

Source: cnbc.com

European Debt Crisis: You Haven’t Seen Anything Yet Though the daily market gyrations might indicate otherwise, realization is beginning to creep in that the European debt crisis and its effect on the U.S. will not take weeks or months to unwind—but years. Read more Source: Getty Images
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European Debt Crisis: You Haven’t Seen Anything Yet

Though the daily market gyrations might indicate otherwise, realization is beginning to creep in that the European debt crisis and its effect on the U.S. will not take weeks or months to unwind—but years.

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Source: Getty Images

Source: cnbc.com

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