Reuters reports that Greece may not take any bailout money this month.
The article mentions that structural reforms are being delayed,and these reforms are necessary for bailout money.It is fair.The question is why Greek government delayed these reforms that are necessary to boost Greek economy and one day Greece get out of recession and stand on its own feet with interventions from any foreign institutions.
Greek parliament approves austere 2016 budget.
Greece’s parliament has narrowly approved the 2016 budget that includes sharp spending cuts and some tax increases amid economic recession. Lets see if Greece will return to economic growth in 2016.
Europe’s banks face a capital shortfall of hundreds of billions of euros if Greece forces them to slash the value of its debt by 50 percent, and other troubled euro zone countries like Italy and Ireland follow suit.
Pressure on Europe to shore up its banks — if necessary with capital from taxpayers’ pockets — is building, as talk of a possible Greek default gains pace.
Banks could probably cope with a Greek default — analysts at Nomura put the total damage at 40 billion euros ($54 billion ) — but markets would then focus on bigger countries and debt writedowns right across the region.
As concerns grow that Greece may default on its government debt, economists are starting to map out possible outcomes. While no one knows for certain what will happen, it’s a given that financial crises always have unexpected consequences, and many predict there will be collateral damage.
The market tanked on Friday and it appears ready to tank again on Monday. Volume was high as SPX shrank nearly 3% and the bulls lost 1175 support. The declines were everywhere, but financials once again fell the most.
Financials are down 18% in the last three months and 25% in the last six. Big banks have taken the brunt of selling this year and for good reason. Economic conditions have weakened and European nations could still leave the euro zone or declare bankruptcy.
Greece is the obvious example of a problem nation. It’s already had a few bailouts over the years, and it will need another round of bailout money to keep the lights on next month. In the past, Greece was able to obtain money without too much trouble…