Greece voted "No" to the terms of the ECB/EU/IMF bailout terms. The Greek people reject austerity leaving them a bitter taste in their mouths similar to taste of plain Greek yogurt. I am a fan of Greek yogurt so perhaps I should use another analogy. The Greek people overwhelming voted no but still wants the Euro and be part of the European union. This will present a tricky situation for both Greece and the ECB/EU and IMF aka the Troika.
I came up with two scenarios which are total guesses because I have no real damn clue on what will happen:
- There appears to be room for compromise as the Troika and Greece were pretty close to an agreement until Prime Minster Tsipras called for a referendum. Also the resignation of Finance Minister Yanis Varoufakis and Prime Minister's request for a meeting with all Greek political leaders could be a sign of unified and softer demands for negations scheduled for later this week.
- Stalemate continues which may lead to a Greek default to the ECB leading to elimination of leading operations under the Emergency Liquidity Assistance program (ELA). Greece will lose access to the Euros it desperately needs therefore accelerating the return of the drachma.
Your guess is as good as mine what do you think will happen?
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