Are Greek Banks under THREAT - Greek Crisis

Guardian - Greek Live: Reports in its 7.16pm the following post on the ECB decision, " And the ECB has maintained the cap on emergency liquidity assistance (ELA) at €89bn, but crucially it has “adjusted” the haircuts it applies to the assets which Greek banks hand over in return for funds.    In simple terms, that probably means the ECB is treating Greek government bonds as riskier, and valuing them as such when it calculates how much liquidity it can provide.  "

Lets Get Real:

The European Central Bank, the lender of last resort can see Spain, Italy and others coming for money if they throw the rule book out to help Greece.    The value of Greek assents has to been in the context of a corrupt political structure, they have gone back on agreements, they play games, and so what is the worth Greek  collateral.  This blog would rather take collateral from the Assad Government in Syria and the Baghdad Government, yes this blog does not trust the Greeks.   The Greek crisis could become a cancer for the whole Euro, this would damage the UK economy, thus it would be better to cut off the damaged part, that is Greece and make sure that the rest of the Euro goes on. Tough outcomes are sometimes hard. 

NO MORE MONEY FROM THE ECB - Greek Crisis

ECB: Press release:  " ELA to Greek banks maintained

• Emergency liquidity assistance maintained at 26 June 2015 level
• Haircuts on collateral for ELA adjusted
• Governing Council closely monitoring situation in financial markets

The Governing Council of the European Central Bank decided today to maintain the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on 26 June 2015 after discussing a proposal from the Bank of Greece.

ELA can only be provided against sufficient collateral.

The financial situation of the Hellenic Republic has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets.

In this context, the Governing Council decided today to adjust the haircuts on collateral accepted by the Bank of Greece for ELA.

The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area. The Governing Council is determined to use all the instruments available within its mandate.  "

Lets Get Real: 

BBC News - Greece Live: Reports in its 7.04pm post the following on the above, " The European Central Bank (ECB) will not be adjusting the amount of funding available to Greek banks.. "  In other words the Greek banks will need to get a new rich sugar daddy to keep them going, could this allow Russia to come to the support of the Greeks, that would make Putin even more of a threat to the EU and the West. 

Germany and Greece - Greece Crisis

Telegraph - Greek Crisis Live: Reports the following on the visit to Paris, France of Germany's Chancellor Merkel, " The German Chancellor is done with dinner and given a very short statement.   She says she awaits new reform plans from Mr Tsipras tomorrow, but says now is not the time to talk of new deals as government's are still reacting to last night's vote. "

Lets Get Real:

It is clear that Chancellor Merkel is not putting HER head on the line to save Greece at the expense of her own political future, that is the problem with any new call for a bailout of Greece, there are other leaders within Euro who will have to go back to their Parliaments to ask for more money for Greece, also there elections coming up in Spain, any relaxing of the Euro rules would mean that the extreme left could run on anti austerity message and get the Germans to pay the cost.   Thus expect tense days ahead, Germany is no push over, the Chancellor has to worry what her own Party might think if she tries to push another Greek bailout.