Greek banks are bankrupt, but who’s to blame for the crisis?
This past weekend, Greece signaled it was inching just a few steps closer to default. It all started on Saturday when Greek Prime Minister Alexis Tspiras announced a national referendum would take place on July 5 – thereby putting the future of the country in the hands of its people. Greek voters will be asked to rule on two draft documents that detail a proposal by the country’s creditors to unlock aid – as much as £15.5 billion – for Greece, in return for sales-tax increases and pension reforms. Ameera David weighs in.
Then, Ameera is joined by Steve Hanke, a professor of applied economics at Johns Hopkins University and the director of the Troubled Currencies Project at The Cato Institute. Steve talks to us about his research measuring the Greek banking system with the Texas ratio and tells us if that’s why the ECB cut emergency funds to Greek banks. He also has very pointed words for the Greek government, which he sees as blameworthy in the impasse with Greece’s Institutional creditors.
After the break, Bianca Facchinei takes a look at how the Greece economic crisis affects the US economy. The Dow Jones dropped 110 points, the S&P 500 dropped 12 points, and the NASDAQ dropped 36 points. But US investors aren't really worried.
Afterwards, RT correspondent Harry Fear reports on the current situation in Athens and how the economic crisis is affecting local communities.
And in The Big Deal, Ameera and Edward Harrison continue the discussion on Greece, China, and Puerto Rico. On Greece, in contrast to Dr. Hanke, Harrison sees the institutional architecture of the euro zone as the genesis of today’s problems in Greece and elsewhere.
Take a look!
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