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Capital Controls taken: Bank Holiday in Greece declared, remain closed for ONE WEEK – Worldwide Markets may crash Monday… The Stage Is Set for Monday Morning SHTF!
IWB (Investment Watch Blog)
Markets in Asia are opening, and the euro is getting slammed
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 very early trading on Monday in Sydney, the euro dropped more than 1% to $1.1029 against the dollar, according to Bloomberg.
The euro closed at $1.1167 against the dollar on Friday.
The euro was also down as much as 2.5% against the Japanese yen.
Read more: http://www.businessinsider.com/euro-asia-open-2015-6#ixzz3eOThcAYH
Greece debt crisis: ECB ‘to end’ bank emergency lending
Cutting the ECB lifeline could push Greece out of the euro.
Such an ECB cut would mean “Europe has failed”, Mr Varoufakis told the BBC’s World this Weekend.
It would mean Europe had “failed in its duty to preserve in parallel a democratic process and a monetary union”, he said. “It is a dark hour for Europe.”
The lenders have “not met Greece even a quarter of the way”, he complained.
….
Greece will probably have to announce a bank holiday on Monday, pending the introduction of capital controls, he says.
http://www.bbc.com/news/world-europe-33303105
Greek banks to stay closed Monday
As Greece’s financial crisis worsens and the possibility of a Tuesday default on its international debt grows greater, Greece’s banks will remain closed Monday and capital controls will be imposed, according to media reports Sunday.
Greece’s stock market also reportedly will be closed.
The bank closure may extend through the July 5 referendum on Greece’s debt proposal to its international creditors, according to reports.
http://www.marketwatch.com/story/greek-banks-to-stay-closed-monday-2015-06-28
Capital Controls taken – Banks to remain closed for one week
The now embattled Tsipras government has decided to implement a a bank holiday … all of next week!
Under that decision, the next open day for banks will be Monday, July 6, a day after an unprecedented call for a referendum. The government said the decision came after a request by the Bank of Greece.
According to reports, the bank holiday will last throughout the week, with the maximum daily withdrawal reportedly set at a … princely 60 euros.
Another unconfirmed report deal with whether ATMs will function on Monday at all, given that technical modifications are necessary to cap withdrawals.
The BoG governor’s request for the unprecedented measures was accepted and approved by a top government body, called, in soothing terms, the Council for Systemic Stability. The request was later forwarded to the Cabinet for its official approval.
The measure will take effect via a ministerial decree, the form of governance heatedly criticized by the SYRIZA party when it was in the opposition.
http://en.protothema.gr/breaking-capital-controls-taken-banks-to-remain-closed-for-one-week/
The gravity of this still sort of sinking in on me. The Greek banking system had around 380 billion in holdings (That was before the last weeks of cash drainage though…), but it’s debt is well over 75 billion. It is done. The only hope perhaps for Greece is a path similar to Iceland.
It will be long and hard, but this may be the only way out. Could explain the explosion of Bitcoin investors from Greece. Like Iceland, Greece could legally hold off debtors for months and years. In the mean time, they could create their own, new banking system – perhaps with a virtual currency, who knows.
All I know is that the weight of this, is that Greece is as of today a full member of the European Union. Sure they may be the size of Maryland (compared to the United States), but the historical nature of this all can also not be down-played. What will it mean for the rest of Europe, the world?
The gravity is that a major step in a Greece reset (A Grexit or default) has been put in motion. Bank runs and subsequent closing of the banking system and stock markets on Monday. Likely for longer then that. The red button has been pushed.
Now the question is, what are the actual plans… ?
Interesting article from yesterday which lays out what would happen if the banks closed… basically, THE EU PLAN IS NOT IN PLACE (so many questions, like how to re-open the banks if they closed!):
http://www.ft.com/intl/cms/s/0/f70c9250-1cde-11e5-ab0f-6bb9974f25d0.html
BANKS WILL BE CLOSED UNTIL AT LEAST AFTER JULY 5TH WHEN THEY VOTE ON A REFERENDUM.
Update 2: Greece’s Skai reports that if/when banks reopen (supposedly on Tuesday), a 60€ withdrawal limit will be imposed.
Update: In a televised address to the nation, Greek PM Alexis Tsipras assured Greeks that their deposits are safe despite an upcoming bank holiday and despite the fact that Greek stocks will not open for trading on Monday. Tsipras also said Athens has re-applied for a bailout extension and urged Greeks to “remain calm” in the face of what is sure to be a turbulent week.
- GREEK PRIME MINISTER SAYS GREEK PEOPLE SHOULD REMAIN CALM
- GREEK PM: BANK OF GREECE PROPOSED BANK TRANSACTION RESTRICTIONS
- GREEK PRIME SAID GREECE RE-APPLIED FOR BAILOUT EXTENSION
- GREEK PRIME MINISTER SAYS DEPOSITS ARE COMPLETELY SAFE
Earlier:
Despite the reassurances from any and all elected (and unelected) officials, given the run on bank ATMs in Greece has turned into a stampede, it is not surprising that:
- GREEK BANKS TO REMAIN CLOSED FROM MONDAY FOR A WEEK: PIRAEUS BANK CEO
- PIRAEUS BANK CEO THOMOPOULOS SPEAKS TO REPORTERS IN ATHENS
The announcement was made when Piraeus Bank CEO Anthimos Thomopoulos told reporters after a meeting of the government’s financial-stability panel on Sunday. The launch of capital controls just as the Greek summer tourism season starts, is sure to be the final crushing blow to Greece, whose entire economy will now grind to a halt.
http://investmentwatchblog.com/capital-controls-taken-bank-holiday-in-greece-declared-remain-closed-for-one-week-worldwide-markets-may-crash-monday/