Greece braces for 'final blow" to it's markets

It looks like the final deathknell for Greece has been sounded.

Closures, shortages loom as insurers exit Greece

"This may be the final blow to the Greek market," said Iliadis, chief executive of a small firm that distributes solar panels, materials for diamond tool makers and chemicals and machines for the marble processing industry across Greece.

If the insurers have bailed, that leaves practically little chance that Greece, in it's current state, can survive. This, combined with reports that very soon Greece will not be able to even pay their power bills, are alarming.

Greek energy crisis could cause blackout in June

The head of the Greek Public Gas Corporation (DEPA) has warned the caretaker government that Greece could face a blackout by early June as it may be forced to shut down the gas supply to electricity producers.

It looks like the birthplace of the Olympics may not even last long enough to witness the London games this summer.

reply to post by Dreine


Here is some more bad news from Zero Hedge.

Tourism, Greece’s second largest industry after the shipping industry, and already in a downdraft, is taking another hit as tour-bus drivers will go on strike next week; wage negotiations have deadlocked. Owners demand that drivers take an additional 50% cut in pay and benefits on top of the 20% cut they’ve already suffered.

The National Organization for Healthcare Provision (EOPYY), Greece’s state-owned health insurer, hasn’t paid pharmacists for months and owes them €540 million. In turn, pharmacists are refusing to sell medications to insured patients, including cancer patients, unless they’re paid in cash—and even hospitals are reporting shortages.

Greece’s ship repair and shipbuilding industry, a highly competitive activity in a global market, has collapsed. Over 90% of its union workers are jobless—though Greek shipping companies own 16% of the global merchant fleet, more than any other nation. They’re just not having their ships built and repaired in Greece anymore—whatever the reason, high cost of labor, lack of investment, changing shipping routes, strikes. A sign that there are fundamental problems related to competitiveness that a bailout, no matter how generous, won’t be able to solve.

reply to post by AnonymousCitizen


Agreed. I've been in Greece in the summer months before... it can be very hot. So even if people were thinking about heading there for some vacation time, no power = no dice. I feel very sorry for those Greek people who are hard working, and I even feel sorry for those who really didn't work hard.

It's not easy to watch the birthplace of democracy die. Not one bit.

reply to post by Dreine


Good post. Possibly the beginning of the 'disorderly collapse' that has been touted as the worst case scenario.

I feel very sorry for those Greek people

That is indeed the real issue, the human cost. But what they are going through may be but a microcosm of what lies ahead across Europe and across the globe.

Judging from your compassionate stance you're not a global bankster. Doubtless some of them view Greece as nothing but a pawn on a much bigger board. Exploitable. Expendable.

reply to post by pause4thought


Thanks!

As a history buff, I have a great appreciation for what the Greek culture has meant to the Western world. And suffering of any kind, by any people, is a wretched thing.

If anything those of us in America should take this opportunity to deeply examine what has taken place in Greece and ensure we do all we can to not allow the same to happen to us. Unfortunately though, most American's believe, like they did in the past, that all we need to keep us safe is the military and two oceans.

Germany now lends money at below 0% (free money) from investers while Greece must pay a crazy amount of interest on new money. So with Greece it goes even worse while they need help, and Germany was doing great and even gets it more easy. Just odd I think..
They went in a spiral downwards which didnt stop.

They now talk about splitsing up the Euro zone, with different rules. It's just a messed up system really.

It's almost like the stock market where people scream like crazy when they make money and the same when loosing money.

It saddens me to know that people may have their entire power supply cut, possibly across an entire country...

Yet the latest breaking news on the BBC site is about how some 90 year old fart has gone to hospital with a bladder infection and is going to miss the queens jubilee.. Hurry up and pop your clogs and then we can get on with the real news that's real important and worth doing something about instead of propping you up in your hospital bed at tax payers expense..

sponger..

and what's with this damned global laser 'light up' thing.. who is paying for that? What a waste... Not just of money but of manpower and resources when it could all be put to better use elsewhere..

If energy was free and nobody had to work (with an automated society) then I'd say party on dude..

My thoughts are with the people of Greece... and Spain, Portugal, Ireland etc etc...

Poor greeks will be starving and living in terrible conditions before we are even touched. I think we will get a close up view of our futurre though. Nah the media will bury this once it happens

reply to post by lobotomizemecapin


Exactly! While everyone is getting up in arms about Syria, understandably, Greece is about to go up in flames. Granted both are different circumstances, but other than financial media outlets, the MSM has gone quiet about Greece. I'm not sure what to make of that, whether or not the story simply isn't 'sensational' enough to tell, or if we're being given the "watch this hand while the other does the work" magic bit...

And there has been way too much villification of the Greek people as a whole. If anything, the blame lays on the politicians/policy makers, and not the majority of Greeks. My two cents.

reply to post by pause4thought


I say take a lesson from the Greeks. Our economic system is unsustainable and self defeating.. the biggest issue is that we cannot rely on employer OR Government supplied retirement and health benefits.. it's such a massive drain on resources.. it simply cannot fit into the economic model we wish to enjoy. The second big thing is throwing money at a problem is the worst way to fix it (because frankly, it solves nothing). Europe threw billions at Greece and it will collapse anyways. Hard working Europeans had to suffer the financial burden to insure Greece. The third lesson to learn is that Banking is the single most destructive force within our economies.. Usury in general needs to be pulled in, personal, corporate and governmental leveraging needs to be reduced drastically.

1. So, who were the guys that demanded and supported critical services such as energy be 'privatised', and believed as a good idea, a Thatcherite model to emulate? May this greek example burn them in the summer's heat and eat uncooked food - justice served.

If critical services such as electrical generation was the gov's responsibility, they would have the obligation to ensure it still runs.


2. Where are the revenues from GDP and the billions loaned to Greece? Truth is, most it went to pay back those very same loan in interests to EU and bailing out banks.

Arn't pensioners and gov workers getting any of it? If they are getting it, none would be laid off, or in the streets today, or even committing suicide!

3. What now? Stick every greek middle finger up to EU bankers, say to hell with payments. From now onwards, every single cent earned from current revenues and resources will be for greeks and for stimulating the economy.

Companies had close down, Corporatist shipping and tourism magnets had hoarded up their wealth. They had held the People hostage. Time for the People stand up instead, as those magnets had refused to shared their wealth and prefer fellow greeks starved. SEIZE THEIR ASSETS! And then restart shipping and tourism under gov stimulas by new owners.

It need not come to this, but if the greedy bastards refuses to share, then someone will have to pay the price. The masses must not be allowed to starved if we are to call ourselves human and civilised.

May the rich be wise, as they drink their champagne and savour on cavier in the French Rivera or Thames UK, while fellow greek masses suffer.

reply to post by Rockpuck


You said it, RP!

Banking is the single most destructive force within our economies.. Usury in general needs to be pulled in, personal, corporate and governmental leveraging needs to be reduced drastically.

Yes, yes, yes, yes and yes. Problem is they've spent centuries spreading their tentacles through every nook and cranny. The banksters even hold key government positions in several countries. As they lever policy decisions away from government into the hands of their leash-holders at Bilderberg it rather suggests they ain't listening to you, RP.


reply to post by SeekerofTruth101


You certainly articulated that anger very clearly! Heaven only knows what happens in Greece when it finally grinds to a complete halt. (As for Spain and Italy — just don't go there.)

reply to post by Rockpuck


Met a man the other day at our Republican State convention who told me watch Greece for the decline and the USD to follow. He went into some detail on the matter but that was the crutch of it.

reply to post by antar


Economically it would be a paradox for the USD to decline if Greece goes bankrupt and collapses/withdraws from the EU.

But, technically speaking, it's bad for the economy to see fast movement either way, a weakening or strengthening Dollar. But if Greece collapses be assured we will face Deflation, which will contract the economy. (By the bankers standards anyways..)

IRAN! here we come!

I don't comment as much as I use to on these developments. I just have my popcorn and sitting back and watching. Having said that though, I do feel very sorry for the Greek people and others in similar dire circumstances. In fact, my empathy will extend to the whole world when it all comes crashing down, bar a few. .

reply to post by Dreine


The bankers that are brining the world to its knees should be held to account. It does not look like thats going to happen. In the US many of them have been granted immunity from prosecution..

They are taking the world for a ride and no one is doing a dang thing about it.

reply to post by Dreine


I'm glad you brought up this topic. Americans ignore Greece. I can't.

My relatives are in hell. But they also laughed for years about not paying taxes.

We need to slap ourselves awake. We need to pay more taxes - enough more.

Our debt - somehow - isn't as bad. And we have - for now - a federal reserve which

Greece doesn't. Somehow, something tells me - it could still, definitely happen here.

In the same fashion.

There has been alot of articles poppin up about this, no doubt it will happen, especialy with their elections lately.

But look at it this way, people who destroy first, are the first to rebuild.

reply to post by Dreine

Does not surprise me at all. The situation here was already unbearable and it gets worse day by day and the political instability after last elections does not help either. Right now pharmacies don't accept prescriptions any more where you have to pay a contribution that varies according to medicaments from 10% to 25%, because the social insurers owe them a lot of money. So, this month will be the first time I will have to pay 70 Euros instead roughly 20 for the medication I need and I will have to file for a refund with my social security which will arrive anywhere between one and three months.

Already, because our corrupt politicians failed to form a government after the May elections the Troika (EU, ECB and IMF) has withheld roughly one billion Euros from the last installment which was needed for pensions and wages and just transferred enough money to bail out four major banks. So, next month I will probably not be paid my pension (and it's not a handout, I paid my fare share to social security both as self-employed and as a hired worker). And I'm just one minor example; there is roughly one million unemployed who have to get by with roughly 300 Euros a month for as long as the are entitled to unemployment benefits. After that they either have to beg or become criminals. Crime numbers have risen sharply this year, especially armed robbery.

It will get much more worse, before it gets better, if ever. If they push us much further, we will be at the brink of revolution, but as history has taught us when this happens the danger of a putsch, a military takeover will be great (see 1967). My only hope is that should this happen our soldiers will disobey orders and join the revolution. Extreme scenarios and I wish not to see them come true, because it will mean much bloodshed. Of course, there is also a chance that after elections next year in Germany, Germany will turn around and work things out with the new Socialist government in France which already pushes for investments, for measure that will produce economic growth instead of pure and strict austerity. But for us it will probably be too late; we won't last that long especially if we fail to form a stable government after the elections.

Finally, as a Greek citizen and on behalf on my fellow Greeks, I'd like to thank all members here who have expressed solidarity and understanding for the suffering of the simple people in Greece, the workers who go unemployed everyday and many have already migrated to Germany, the unemployed and the farmers and pensioners like myself. Simple people with low or no income who got hit the hardest in all this mess, while the wealthier upper middle class, the corrupt civil servants and the corrupt politicians have no problem at all; they all have millions of Euros stashed away in Swiss banks. Did you know the Swiss are finally willing to cooperate with us and open bank accounts there to scrutiny, but our previous, elected government was stalling talks? Yep, they all have stashed away bribery money in such accounts and thus have no interest in checking into this.