Monday, June 29, 2015


                                  drawing/watercolor by marguerita bornstein

On Sunday, the Greek debt crisis entered a new and dangerous phase. In recent months, the European Central Bank has made emergency loans available to Greece’s ailing banks, increasing the size of the support as depositors have taken euros out of the banks. Despite signs of large withdrawals over the weekend, the E.C.B. did not announce that is was approving a further increase, but instead said that it was maintaining the loans at their current total, which is thought to be around €85 billion.
Precedents for such a transformation may not exist. Economists say they cannot think of a time when a developed country with an open economy dropped out of a shared currency and set up its own new moneyPolls show that the Greek people favor staying in the euro, and Greece’s leaders have said they do not want to leave the common currency. Indeed, fears of the consequences of leaving the euro could help persuade Greece’s leftist government to soften its stance and, at the last minute, forge a deal with its creditors.Continue reading the main story;postID=3896083347370383100

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