Tag Archives: Greece

Greece Bailed Out

Greece has been given the bailout they were seeking for weeks after agreeing to economic reforms.

The $96 billion bailout is the third for Greece since 2010 and should keep the nation in the Euro for the moment.

The key for the deal is that Greece must show concrete steps toward cutting pensions and raising taxes in the nation.  The measures must be passed by the Greek Parliament by Wednesday if the bailout is to progress further.

However, the bailout is drawing fierce criticism from Greek citizens and others who support them.  The hashtag #ThisIsACoup has been trending on social from those who see the demands of the EU as taking over Greece.

“The trending hashtag ThisIsACoup is exactly right,” economist Paul Krugman wrote for the New York Times. “This goes beyond harsh into pure vindictiveness, complete destruction of national sovereignty, and no hope of relief.  It is, presumably, meant to be an offer Greece can’t accept; but even so, it’s a grotesque betrayal of everything the European project was supposed to stand for.”

One of the elements of the deal is that $56 billion of Greece’s public assets be placed into a truth in Luxembourg, where the proceeds from privatization of the assets would be used to pay the nation’s creditors.

Markets around the world climbed on the news of the bailout deal being offered to Greece.

Germany Caves To International Pressure on Greece

German officials have reportedly given in to the demands of other European nations and banking institutions in regard to money owed them by Greece in what could be a significant step toward ending the Greek debt crisis standoff.

The European Council had been calling the loudest for Germany to make steps toward working with Greece after Chancellor Angela Merkel and other officials took a hard line stance over Greece’s unwillingness to accept austerity measures.

“The realistic proposal from Greece will have to be matched by an equally realistic proposal on debt sustainability from the creditors,” said Donald Tusk, the European Council president.

Greece submitted a new reform proposal to the EU just two hours before a midnight deadline Thursday.  The plan contains many items that Greek Prime Minister Alexis Tsipras had rejected and urged the nation’s voters to reject in a recent referendum.

The new proposal includes tax increases, reform to pensions and spending cuts.

“The package takes a very substantial step in the right direction, and it should move us closer to a deal,” said Mujtaba Rahman, the Europe director for the Eurasia Group, told the New York Times.  “The question now is whether the Greeks are actually going to implement some of the measures over the course of the weekend by putting them before their Parliament as German officials seems to be demanding.”

German Chancellor Merkel stated later in the day Thursday that she still opposes any debt reduction for Greece as part of the deal.

China Could Be Facing Their Own “1929 Stock Crash”

The Chinese government has been scrambling over the last few days in an attempt to stave off a massive stock collapse similar to the 1929 U.S. stock market crash which caused the Great Depression.

The Wall Street Journal said Wednesday that it appears the Chinese government is losing control of the market despite efforts to stop the slide.  The stock market has already begun to impact other parts of the Chinese economy, with the country’s bond and currency markets starting declines.

The Shanghai Composite Index (SCI) fell 5.9% on Wednesday and has lost 33% of its value since a peak on June 12.  The total of the loss, $3.5 trillion, is nearly five times the value of computer giant Apple, Inc.

“Beijing’s latest bid to calm the market has had the opposite effect,” said Bernard Aw, market analyst at IG Group, told the Journal. “The panic is spreading, and authorities appear to be grasping at straws to hold back the tide.”

While most of the world is focused on Greece, which as a nation has a gross domestic product for a year that totals only 13% of the losses on the Chinese stock market since June 12.

“China’s stock market had become detached from the reality of China’s own economy, and appallingly overvalued,” Patrick Chovanec, managing director at Silvercrest Asset Management, posted on Twitter.

Chinese government officials pushed more money to brokerage houses Wednesday in an attempt to prop up the market.  Over 1,300 Chinese companies, almost half the total in the market, have suspended their stock trading.

Some Greek Banks May Close Even With National Bailout

Some of Greece’s larger banks could end up disappearing as a result of the economic collapse taking place in their nation.

European officials confirmed to Reuters that some weaker banks will be taken over by larger rivals in a restructuring of the banking industry.  They estimated that two of the four major banks — National Bank of Greece, Eurobank, Piraeus and Alpha Bank — could end up being absorbed by other banks.

“The Greek economy is in ruins. That means the banks need a restart,” an official told Reuters. “Cyprus could be a role model.  You have a tiny bit of time … you would do restructuring straight away.”

The plan is expected to meet fierce Greek resistance.

The news from the EU officials comes as Greek government officials confirmed they would be extending bank closures and putting a 60-euro limit on ATM withdrawals until Monday because the European Central Bank (ECB) decided not to increase support for Greek banks until a solution is found for the current economic default.

Greek citizens have been attempting to clear out bank accounts and spend their money fearing that their deposits could be seized in a bailout deal.

The EU is facing internal conflict as Germany, the biggest creditor for Greece, is resisting calls to restructure Greece’s debt.

“Greece is in a situation of acute crisis, which needs to be addressed seriously and promptly,” International Monetary Fund chief Christine Lagarde said at the Brookings Institution think-tank in Washington.

Could this be the Beginning of a Complete World Collapse?

A Day of Chaos on Wall Street today!  As this is being written, the New York Stock Exchange had been closed for over 4 hours.  The Greek Government is scrambling to fix their financial disaster and headlines are screaming out that the real crisis in the financial news is that China is headed for a crash much like what happened to us in 1929. As I have watched the news today, riveted by what is happening all over the country, all I could do was sit and connect the dots. Could the world’s financial system be taking the first major step towards a complete collapse?

This morning, United Airlines had to suspend and cancel flights all over the country because of a “computer glitch”; The Wall Street Journal’s Website went down because of a “computer glitch”.   All of these computer glitches and I have a hard time NOT connecting them together. And if these incidents are related, then it had to be by something evil.

There is massive flooding all over the country and power outages occurring because of them. We are also suffering from drought and threats of disease that are wiping out some of our food supply.  The warning signs are continuing to flash brighter.

Last night I received a phone call from a recent prophetic guest and wonderful friend, John Kilpatrick.  He told me that, “The next 90 days will be more important than the last 54 years of your ministry all together!”  He went on to warn me, “Do not be distracted as the next months are crucial!  Your voice must be diligent and clear in the next 90 days!”

Time after time, our prophetic guests have told us all that we need to be preparing NOW!  It IS time to get ready for what is to come!  John Shorey, Rick Joyner, Joel Richardson, Carl Gallups and Rabbi Jonathan Cahn are among those that have just recently been warning the world of what is to come!  I cannot help but think of their words as this day unfolds.  We will see more of these days of uncertainty, we will see more chaos.

According to Joe Grano, Chairman and CEO of Centurion Holdings LLC and former chairman of Homeland Security Advisory Council: “The two places America is most vulnerable is our financial systems and our energy grid. And the biggest warning light is that our enemies not only can shut down our financial system but also our grid.”

I am committed to bringing you as much information that I can as the days unfold.  We are going to be working on this together!  On our next broadcast, we will be talking about these world shaking events and piecing them together on the show.  We will be discussing the many events that are coming together in this world and what we can begin expecting in the days to come. Today we began construction on our new Roku network “breaking news” facility. We are so eager to finish this new building so that we may bring you the cutting edge news as soon as it is breaking.

The Lord is speaking to all of us in so many ways.  We want to hear from you if you feel He is speaking to you!  Please send us information that you find and news that you feel is important during these prophetic days.  We want to hear from you!  Please email us at newsteam@jimbakkershow.com.

God Bless you.

Love,

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New York Stock Exchange Halted By Computer Glitch

Trading at the New York Stock Exchange (NYSE) was suddenly halted around 11:32 a.m. Eastern Time because of what officials termed a “computer glitch.”

The market was down over 200 points (over 1%) at the time of the halt.

“We’re currently experiencing a technical issue that we’re working to resolve as quickly as possible,” Marissa Arnold, an NYSE spokeswoman, said in an e-mailed statement. “We will be providing further updates as soon as we can, and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently, and ensure a timely and orderly market re-open.”

The Nasdaq reported to problems and said they continue to trade stocks that are listed on the NYSE.

“It’s been a little bit of a bumpy day. We had some technical problems even before the opening,” said Art Cashin, director of floor operations at the NYSE, in a CNBC interview.

“This will not cause a move in any particular direction, so I would kind of wait it out and see what happens,” he added.

The uncertainty about Greece and a massive selling of Chinese stocks were driving the market lower.

The Department of Homeland Security told CNN they found “no sign of malicious activity” at the stock exchange and no sign of a cyberattack.

Greece Given Until End of the Week For Economic Proposal

Greece has until the end of the week.

That’s the message being sent by European leaders who are meeting to discuss the nation’s rejection of austerity measures and bailout terms to help the country out of their default to the International Monetary Fund (IMF).

The deadline comes after a heated meeting Tuesday among members of the European Union.  If there is not an acceptable proposal on Sunday, Greece could be ejected from the Eurozone.

“The stark reality is that we only have five days to find the ultimate agreement,” said a visibly irritated Donald Tusk, the European Council president. “Until now I have avoided talking about deadlines. But tonight I have to say it loud and clear — the final deadline ends this week.”

“I’m strongly against Grexit (the nickname for a Greece exit from the Eurozone),” European Commission President Jean-Claude Juncker said. “But I can’t prevent it if the Greek government is not doing what we expect the Greek government to do.”

Greece’s Prime Minister Alexis Tsipras had told Greek voters if they rejected the referendum he could make a deal with Europe “within 48 hours.”  That time limit passed without a formal proposal and only some comments from the nation’s new finance minister reading off handwritten notes.

French President Francois Hollande said that the European Central Bank (ECB) would likely provide money Wednesday to keep Greek banks afloat through Sunday.

Greece and China Create Small World Market Impact

The rejection of the Greek referendum and a massive stimulus action by China are not hitting all world markets as much as feared except in the area of oil.

U.S. crude oil fell over 7 percent to $52.53 a barrel, the lowest level since April.  Brent crude, the world standard, fell over 6 percent to $56.50.  The markets were hit with pressure from the Greek and Chinese situations plus Iran is preparing to flood the market after sanctions get lifted from a potential nuclear deal.

“Even without Greece, China’s stock market woes and Iran priming to hit the market with more barrels, the demand picture in oil has only been okay while the supply picture has been phenomenal,” said John Kilduff, partner at New York energy hedge fund Again Capital, told CNBC.  “With these number of bearish elements weighing on the market now, the only thing of support has been the seasonal demand in gasoline, and even that will be going away soon.”

American stock markets were down after the Greek “no” vote but not as much as feared by analysts.

The Dow ended the day down 47 points or 0.3%.  The S&P 500 as down 0.4% and Nasdaq was down 0.3%.

“There’s been no panic of any kind,” Paul Hickey, co-founder of Bespoke Investment Group told clients according USA Today. “The market remains faithful that the European Central Bank and other European institutions have done an adequate job firewalling the eurozone against Greece.”

The resignation of the Greek finance minister Monday is believed to have helped mute the impact of the Sunday referendum.

Greece Votes No To Bailout Terms

Greek voters sent a firm “no” to the demands of European creditors when they voted by a 61-39% margin on Sunday’s referendum on austerity measures.

While the citizens of the country cheered, the rest of the world watched as the nation took steps closer to bankruptcy and bank failure. The banks in Greece had been shut down for the last week because of low balances and were only running because of emergency funds from the European Central Bank.  ECB officials plan to meet Monday to see if they continue to prop up the banks and if so, for how long.

Voters told news outlets they were tired of the demands of creditors and that a rejection of tax increases and pension cuts was “a matter of national dignity” according to the New York Times.

The vote was also seen as a victory for Prime Minister Alexis Tsipras, who ran on a campaign platform of rejecting new austerity measures.  He claims that the vote was not a vote to “rupture” from Europe.

“I’m fully aware that the mandate that I was given (by voters) is not for a rupture with Europe, but a mandate boosting our negotiating strength for reaching a sustainable deal,” Tsipras said.   “The people today replied to the right question.  They did not answer to the question in or out of the euro. This question needs to be taken out of the discussion, once and for all.”

European observers say, however, it’s now likely Greece will be forced into bankruptcy and removal from the Euro.  A possible expulsion from the European Union is now on the table.

Markets across the country saw tumbles due to the Greek rejection of the referendum.  The only market that did not show a massive decline was China, because the Chinese government dumped a massive stimulus into the economy.

Major Rallies Scheduled Before Confusing Greek Vote

Major rallies are being scheduled in Greece today ahead of a referendum Sunday on a proposal for the country’s debt that is not even on the table.

The country has already defaulted on a loan from the International Monetary Fund (IMF) and European Union (EU) officials are warning that a no vote from the Greek citizens on Sunday could mean the country’s exit from the Euro.  Economists say such a result would cause ripple effects throughout the world economy.

Greek voters, however, are very confused by the referendum.

“No one is really telling us what it means,” said Erika Papamichalopoulou, 27, a resident of Athens, told the New York Times. “No one is saying what will happen to us if we say yes, or what will happen to us if we say no.”

Banks in the nation remain closed ahead of the Sunday vote.

Prime Minister Alexis Tsipras appeared to take steps Wednesday to accept many of the demands of the nation’s creditors but has also been telling citizens to vote down the referendum on the deal.

European leaders are pointing out that Sunday’s vote is revolving around a deal that is no longer on the table because the framework was built around a bailout package that was revoked on Tuesday.

The IMF surprised many on Thursday when it called for more aid and debt relief for Greece.  The IMF says the Greek situation has significantly deteriorated because of conflict with creditors and calls for European leaders to be more generous financially toward Greece.