Greece rejects IMF ECB terms of 2nd bail out? What will happen next

Ad Majorem.....Wealth Builders

July 5, 2015

Greeks (61%) vote no to 2nd bail out terms

While the Greeks can only withdraw $60.00 per day from ATM, and banks remained closed the entire week, they voted 61% no to ECB and IMF terms of  2nd bail out.  Many can not comprehend what PM Alexis Tsipras and his left wing party are up to.

We do understand that  the Greeks no longer want the prolonged hardships they are experiencing.  Since the Greek govt failed to pay the $1.5 billion interest payment due at the end of June, effectively their credit is gone.  No liquidity to be infused to the banking system.   We should be wary when IMF says that failure to come to their terms would mean more hardships.

But what are the results/possibilities?

1.  Results, -  decline in the Euro stock prices and Eruo vs dollar and yen.  Euro is only $1.10 vs the dollar;  it can go lower.

While the Greece economy is only 2% of the total European economy the  200 billion possible default, can send ripple effect worldwide.  All ready the equity markets are on the decline and there are indications of sell off.

Possibilities:

1.  Debt relief for Greece

2.  3rd debt relief

3.  Grexit?

4. Collapse of the Euro and possibly the world financial system