The Mess in Greece

The Greek Crisis has reached the boiling point. Talks collapsed yesterday and now the Greek government has until Thursday to reach a deal. Greece owes the IMF $1.7 billion, and the rest of Europe has run out of patience. This mess has gone on for a long time and the Germans now seem fine with having Greece leave the EU.

Germany’s EU commissioner said it’s time to prepare for a state of emergency. Markets in Europe are down today, and the damage is severe in Greece:

Greek bank stocks, which have fallen 99 percent from their pre-crisis peak, plunged as much as 17 percent and traded 8.7 percent lower at 1:51 p.m. in Athens. The yield on Greece’s 2017 bonds jumped 241 basis points to 28.45 percent.

So far, the Greek drama has had little impact on our markets. It’s not that Greece affects us that much, but Greece affects people who affect us (like the Germans). This has helped the strong dollar get even stronger.

Posted by on June 15th, 2015 at 9:22 am


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