Apparently Greece is more important to EU than even the Greeks believed

Greek Crisis Now Causing Bizarre Behavior In Visiting New Yorkers

By Thornton McEnery

Post a Comment / / at 2:30 PM
So, sh*t is getting Peloponutty over in Greece.

The Finance Ministry said Sunday that banks will be closed for six days and local bank customers will only be able to withdraw €60 a day from ATMs to prevent the banking system from collapsing. To protect the vital tourism industry, cardholders of foreign accounts aren’t subject to the ATM limit.

Even with that withdrawal limit though, the lines at Greek ATMs are stretching for blocks and most of the machines are about as dry as the erotic energy between Angela Merkel and Yanis Varoufakis.

To top it off, most of the long lines are populated by people – many of them adorable senior citizens – looking to salvage their savings from a calamitous economic event, making the situation just that much more awkward for tourists who kind of, sort of, really want to go shopping in a country that is suddenly on clearance.

Costas Kessaris, whose jewelry and watch shop in central Athens attracts mainly wealthy tourists, said potential customers are noticeably concerned and avoiding expensive purchases.
“We haven’t sold a single item today. For tourists to splash thousands on a top brand watch or a piece of jewelry, they must feel happy and secure, and the climate in Greece these days is anything but,” Mr. Kessaris said.

How bad is the situation for merchants like Mr. Kessaris?

Adriana Sorenson, a New Yorker on a 10-day vacation, browsed the Rolex watch collection at the Kessaris shop.

Well, it obviously can’t be that bad, he’s got a New Yorker looking at a major deal on a luxury watch. Natural law dictates that Mr. Kessaris just sit back and warm up the cash register while Ms. Sorensen gives into her Big Apple-bred instinct and ponies up for the right to brag about how little she paid for a ROLEX!

“I want to buy a new watch and take advantage of the tax-free-VAT return,” Ms. Sorenson said. “But it just doesn’t feel right with all those people waiting in line to withdraw a mere €60. I’ll wait until the end of my vacation before I decide, but not today.”

Greece is f*cked you guys.
 


According to Puerto Rico Governor Alejandro Garcia Padilla, the country can no longer make payments on its $73 billion in debt, warning the island is perilously close to entering a "death spiral."

In an interview published Sunday in the New York Times, Gov. Garcia Padilla stated, "The debt is not payable...there is no other option. This is not politics, this is math."

He went on to say, "But we have to make the economy grow. If not, we will be in a death spiral."

Related Link: Everything You Need To Know About Greece's Coming Referendum

The warning comes just one day before a joint IMF and World bank report that is expected to portray a desperate view of the country's economic health. Gov. Garcia Padilla will deliver a major speech Monday following the report's release.
Your editorial has a few mistakes which I would like to correct. It says "Mr. García Padilla says he is prepared to make sacrifices, including cutting more spending" but he is unwilling to layoff one single government worker (a campaign pledge) from a bloated payroll which takes up one third of the budget. Your number of 70,000 is what the governor claims it is now, down from 120,000, yet consultant contracts have more than tripled.
Each of the three budgets he has put forth, which he claimed were balanced, have wound up not being so. The island can only take in realistically $8 billion in fiscal (2015-16 which began yesterday), and that number may even be lower with less spending since the sales tax has jumped from 7% to 11.5% (much higher than any state). Yet the governor yesterday signed a $9.8 billion budget. The 11.5% tax rate is only April when it will change to a 16% VAT. With more than 70,000 persons leaving the island permanently in the first five months of this year, it is easy to figure out that tax estimates are way off the charts.
It has become obvious that the governor hoodwinked the Editorial Board of the Times by telling you last week that "the debt is unpayable" yet yesterday, suddenly $1.6 billion appeared out of nowhere to make two huge payments due June 30. Then we come to find out that the PREPA payment of more than $440 million was made with the help of a short term loan at 12%.

The Puerto Rican government is now seeking concessions from its creditors, including deferring or extending debt payments. A $400 million debt payment due July 1 by the government run utility PREPA may likely not be payed in total. PREPA itself has about $9 billion in total debt and is rated the lowest level possible by Moody's.

The New York Times article also touched on the immediate implication for debt relief on such a vast scale, with a likelihood that borrowing costs for other local governments will be increased as investors become more wary of lending.



Read more: http://www.benzinga.com/news/15/06/5631420/puerto-rico-could-be-on-cusp-of-default#ixzz3eSZKH75i
 
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