Monday, July 6, 2015

Greeks Surprising No Vote

Greece voted to reject Europe's latest bailout offering, thus, opening the door to leaving the EU and euro. As previously discussed, voting to reject a bailout offer is easy in comparison to actually exiting the EU. Resignation of the Greek finance minister Yanis Varoufakis, an outspoken critic of austerity and management of the eurozone, likely strengthens the hand of control from Brussels at least short-term.  Spain has already stated they're ready to talk about a third Greek bailout.

Thousands of Greeks celebrated in the streets of Athens after Sunday's surprise outcome. The markets, mostly trading in the red throughout the globe, reflected the expectation of a pro eurozone outcome. The contagion, a slow process fueled by denial, ignorance, and blind trust of central planners to manage the unmanageable (the business cycle), begins today.

Headline: Greek PM plays down 'Grexit' after landslide

The majority of Greek voters have rejected the reform proposals from the country's creditors, in a crucial referendum that could set the path for Greece leaving the euro zone.

After 12 hours of voting on Sunday and with over 80 percent of the votes in, the country's Interior Ministry said 61 percent of the ballots cast had backed the "no" campaign.

But despite fears of a "Grexit," Greek Prime Minister Alexis Tsipras said the result was not a mandate to clash with Europe.



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