Max Ehrenfreund, Washington Post: Why a deal might be too late for Greece
Greece and Europe have reached a deal. The goal is keeping Greece in the currency union, but it's unclear whether the plan will really do what it's supposed to do -- even in the short term, and even if the agreement is ratified, which it might not be.
The Greek banks are nearly out of cash, and confidence is in short supply among the Greek people. The deal agreed to Monday morning will do little to restore that confidence, since it will likely further dampen the Greek economy in general. To prevent Greeks from making a run on the banks with the hope of getting their deposits out, the limits on withdrawals at banks imposed last month might have to remain in place for "a long time," as Dan McCrum writes in The Financial Times.
Update: After "Deal", Here's What's Next For Greece -- Zero Hedge
WNU Editor: For most Greek citizens this is their reality today .... Greek banks to stay shut for now, finance ministry says (Reuters). But I will agree with the following observation that as more details of the agreement become known, many Greeks are not going to be happy .... Relief -- and much anger -- in Greece as Tsipras clinches deal (Reuters) .... especially when they realize that they have been made to look like a bunch of fools .... Greeks see 'humiliation' in harsh terms of eurozone bailout (AFP) .... doubly so when their assets are then sold off (I am sure) at very cheap prices .... What Assets Did Greece Just Hand Over To Europe: "Airports, Airplanes, Infrastructure And Most Certainly Banks" (Zero Hedge).
As to the other details of this deal .... this is just an agreement to have talks .... the EU and the Greek governments are still far-away from a completed deal. And the big problem still remains .... if the past is any indication I have doubts that the Greek government will respect its word. They have broken it so many times in the past year .... especially in the past few months .... that to have a quick change in philosophy and commitment (all within a week) stretches the imagination. But the banks are closed, and hundreds of thousands of government employees are expecting pay-checks this week .... faced with these options .... what choice did the Greek government really have? As for the long term .... yup .... life is going to be very difficult for the average citizen in Greece.
