Chaos and economic disaster are still stirring up in Greece, with a sharp rejection of foreign control of their troubled affairs.

More austerity and new rounds of loans? Voters in Greece’s emergency referendum were overwhelmingly against it. Whatever happens next, they stood up to the authoritarian tactics of the European Union. Hurrah.

Greeks voted overwhelmingly to reject creditors’ proposal of more austerity measures in return for rescue loans, in the country’s first referendum in 41 years Sunday.

The referendum “will stay in history as a unique moment when a small European nation rose up against debt-bondage,” Varoufakis said. (source)

Now signal the panic. Collapse may be impending. Then doom. Contagion could spread to America, too, and trigger global market implosion and derivatives meltdown.

This weekend brought not only the “no” vote but the resignation of Greek finance minister Yanis Varoufakis, who angrily pointed the finger at predatory creditor banks who he said are using “terrorism” against the angry, defiant people of Greece.

Yanis Varoufakis, Greece’s finance minister, on Saturday accused the country’s creditors of trying to “terrorise” Greeks into accepting austerity.

“What they’re doing with Greece has a name: terrorism,” he told Spanish newspaper El Mundo. “Why have they forced us to close the banks? To frighten people.” (source)

As things stand, the banks are still closed, ATM withdrawals are very limited and strict capital controls have imposed to avoid a full on bank run… but now they are looking to take deposit funds to cover the emergency as well.

With the very near possibility of collapse, amid a shortage of cash and short term money, banks in Greece are poising themselves to “bail in” during financial emergencies by seizing customers bank accounts.

FT reported:

Greek banks prepare plan to raid deposits to avert collapse

Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears the country is heading for financial collapse…

The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000…
So that could be coming next.

European finance figures expressed woe over the Greek rebellion, and deep upset at the threat to the Euro, decrying:

“a path of bitter austerity and hopelessness.”

“What we certainly don’t want to do is to take decisions that will threaten the monetary union.”

It should be a stark reminder who will carry the costs of failure – the people. Once again, it is the public who bears the losses, and the private clubs who enjoy the profits.

Americans may remember the episode with MF Global – where the company lost big in derivatives and stole customers funds to cover their losses.

Well, that one taught everyone what to expect… be sure, there is more coming.

Source

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