Greece Says That It Will Default On June 5th, And Moody’s Warns Of A ‘Deposit Freeze’

The Economic Collapse ^ | 05/20/15 | Michael Snyder

[Enlightened1]

The Greek government says that a “moment of truth” is coming on June 5th. Either their lenders agree to give them more money by that date, or Greece will default on a 300 million euro loan payment to the IMF. Of course it won’t technically be a “default” according to IMF rules for another 30 days after that, but without a doubt news that Greece cannot pay will send shockwaves throughout the financial world. At that point, those holding Greek bonds will start to panic as they realize that they might not get paid as well. All over Europe, there are major banks that are holding large amounts of Greek debt and derivatives that are related to the performance of Greek debt. If something is not done to avert disaster at the last moment, a default by Greece could be the spark that sets off a major European financial crisis this summer.

[Enlightened1]

If Greece goes, then expect to see Spain and Italy to follow soon after.

It will start the collapse of the Euro

[Oldeconomybuyer]

Greece has been warning of a “moment of truth” for 3 years.

[Obadiah]

Give us more money because we can’t repay the money you already gave us!

Gee, what could go wrong?

[abb]

None of the productive economies will miss them much. Time to cut them loose.

[allendale]

When Greece defaults, no one will be “shocked”. They have already defaulted and are kept solvent only by the nonsense propagated by the EU and IMF that continues to send other people’s hard earned capital to the free spending Greeks.

[cuban leaf]

Either their lenders agree to give them more money by that date, or Greece will default...

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Hey, I should try that with my bank. I always wanted a Ferrari.

[kidd]

It is inevitable that Greece will default.

The EU should be planning how to manage the default rather than dumping more money into the Greek pit.

[Cronos]

This is like a slow-motion Greek tragedy (actually aren’t ALL the ancient Greek tragedies slow moving?)

[Viennacon]

Hello Golden Dawn.

[Cronos]

Not any more. The Greek contagion was blockaded off years ago. If this happened in 2011 then there would have been a euro collapse. Now, it’s not very likely

[Cronos]

this is less about the EU and more about the Eurozone. The two are not synonymous

[ken5050]

Here's a thinking-outside-the-box solution: Apple should buy Greece

[Poison Pill]

a default by Greece could be the spark that sets off a major European financial crisis this summer.

Are we going into Recovery Summer IV or is this Recovery Summer V? I keep losing track.

[Paulie]

I don’t know if they’ll default this time around or not. But one thing’s for sure - the big boys will have long before then moved their money to safer havens.

[IYAS9YAS]

Give us more money because we can’t repay the money you already gave us!

You owe a bank 300,000.00, they own you. You owe one 300,000,000.00, you own them...

[RayChuang88]

I completely disagree. Unlike five years ago, that scary experience of near-default forced every bank inside the Eurozone besides Greece to substantially beef up their liquid reserves in case of the so-called Grexit. Today, the Eurozone can withstand such a financial calamity. Indeed, banks in Spain and Italy have vastly higher liquid reserves now.

[exit82]

Actually this will be “Recovery Summer VII”.

Joe Biden has been put in charge of the festivities. /s

[yefragetuwrabrumuy]

A deposit freeze, aka a bank holiday, will be very interesting to watch. The US has repeatedly enhanced its laws permitting a bank holiday at the drop of a hat; and even by itself, a bank can freeze deposits up to two weeks. Even “demand accounts” are no longer protected.

So, the $64 question is: “Will deposit freezes create a domino effect causing freezes outside of Greece?”

If it spreads to other EU nations, then do not be surprised if it has the potential to spread to North America.