Greece Financial Crisis explained - our family is fine!!!

Hello from Greece................a sad state of affairs we have arrived to these past few weeks. Greece is in major crisis.....but don't worry family and friends we have food, toilet paper, bottled water and a wallet full of Euros. The countries financial crisis has apexed and this coming weekend July 5th the people of Greece will decide one of two worse fates. Keep the Euro and be broke and financially depressed OR go back to the Drachma and be broke and financially depressed......hummmmmmmmmmmmmmmmmmmmm.

Many of you have been texting and emailing asking if we are ok.....we are just fine. We are considered tourists still while we live here in Greece, therefore we are encouraged to take out as many EUROS from the ATMs as possible and spend spend spend!! I do my best to keep Greece financially afloat. We can buy whatever we need. I did though have the experience this past Monday at the grocery store. So last Saturday was when it was announced that the citizens of Greece would be given the vote to decide their financial fate. Sunday ALL THE STORES ARE CLOSED AS USUAL.  Monday was the first day of the week and the first day the stores were open after the government's decision.......and the stores were mobbed, people buying 10 Costco size packages of toilet paper, 10 packs of water bottles, pasta packages to feed their families for weeks.....etc. Gas stations were closed and the banks were closed. It was crazy and I was in the middle of it, just trying to buy groceries for the week. But as usual, Greeks have a tendency to panic and exaggerate, today is Wednesday and the grocery store was empty and the shelves FULL and they took my money! So all is OK!!!!!!

I found this super condensed, summary article that explains the basic financial situation that faces Greece.
But rest assured, we are fine. We can shop, we have access to money and our summer will be unaffected we assume by all that is occurring around us. Greece is still an AWESOME place to vacation, so don't worry!!!

Other major events in the Makrogiannis family since we arrived......we arrived after 4 long days of travel due to major storms throughout the USA which caused cancelled flights and delays on planes and sitting on tarmacs for hours.....but 4 days later we arrived, and both Ana and Theo arrived with high fevers. We had the doctor visit our home several times and eventually Ana kicked the fever, but poor Theo got worse and worse and after 7 days of high fever he was admitted to the hospital here in Kavala with pneumonia. It was a scary experience for all of us, but Theo, secretly, enjoyed the experience because he got Mommy and Daddy's one-on-one attention for 5 days in the hospital. We are back at home. Theo will rest for another few weeks, then we'll start our vacation.....3 weeks late, but we'll start.

Anyways......my blog entries have been delayed but I will begin blogging in the next few days as my own routine begins to settle down and get started. But I wanted to address for you all that Greece is in crisis but we as a family are just fine!!!

Big Hugs to you all!!!!
Val

The Greek financial crisis explained in fewer than 500 words

When Greece joined the euro in 2001, confidence in the Greek economy grew and a big economic boom followed. But after the 2008 financial crisis, everything changed. Every country in Europe entered a recession, but because Greece was one of the poorest and most indebted countries, it suffered the most. The unemployment rate reached 28 percent in 2013, worse than the United States suffered during the Great Depression.

If Greece wasn't in the euro, it could have boosted its economy by printing more of its currency, the drachma. This would have lowered the value of the drachma in international markets, making Greek exports more competitive. It would also lower domestic interest rates, encouraging domestic investment and making it easier for Greek debtors to service their debts.

But Greece shares its monetary policy with the rest of Europe. And the German-dominated European Central Bank has given Europe a monetary policy that's about right for Germany, but so tight that it has thrust Greece into a depression.

So Greece is squeezed between a crushing debt burden — 177 percent of GDP, about twice the level in the United States — and a deep depression that makes it difficult to raise the money it needs to make its debt payments.

For the last five years, Greece has been negotiating with European Commission, the European Central Bank, and the International Monetary Fund (dubbed "the Troika") for financial assistance with its debt burden. Since 2010, the Troika has been providing Greece with loans in exchange for tax hikes and spending cuts.

Rich European nations such as Germany believe they're simply insisting that Greece live within its means. But the austere terms of the bailouts have caused resentment among Greeks and contributed to crisis-level unemployment and poverty. In January, they elected a new left-wing prime minister, Alexis Tsipras, who promised to reject the previous bailout deal and secure a more favorable agreement.

But he has very little leverage. In 2010, Greek debt was widely held by private banks, so a Greek default could trigger a financial panic. But since then, this debt has been consolidated in the hands of rich European governments, greatly reducing the risk of a financial crisis if Greece defaults.

So Greece faces a hard choice: it can accept the Troika's demands for further austerity. Or it can defy the Troika, which would likely lead to a default on Greek debt and possibly a Greek exit from the euro. The Greek government is holding a referendum on July 5 to let voters choose between these bad options.

In the meantime, the Greek economy is melting down. Knowing that Greek euro deposits could soon be transformed into devalued drachma deposits, Greek people have been rushing to ATMs to withdraw as much cash as they can. That has forced the Greek government to close the banks and limit withdrawals to €60 per day.

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