Creditors

"A possible Greek default on debt due to the International Monetary Fund next week would trigger cross- default clauses on 130.9 billion euros that Greece owes the euro area’s temporary rescue facility, a European Union official says."

As Jerome Dijsselbloem fearmongers all the worst parts of the bible that are about to befall Greece, Yanis Varoufakis is explainiing the Greek decision:

*VAROUFAKIS: CREDITOR OFFER LACKED HOPE FOR INVESTORS, CONSUMERS
*VAROUFAKIS SAYS GREECE FIND ITSELF AT `HISTORIC MOMENT'

Adding that the decision by the Eurogroup (ex-Greece) to veto the program extension damages Europe overall, Varoufakis defiantly concluded, "Greek aid programs have been clear failures" and the Greek government has no mandate to accept a "recessionary" aid offer.

While the path ahead suddenly just got very confusing for both Greece and Europe, one thing is clear: going forward the Greeks will only have themselves to blame for whatever the final outcome is. That, and the Greek trargicomedy which has now lasted for over 5 years, may finally be over.

With the ATMs literally running out of cash in Greece after PM Alexis Tsipras announced a referendum in a dramatic, early morning televised address to the nation, EU finance ministers are meeting in Brussels today to determine what the next steps are now that Athens has effectively given creditors an ultimatum. According to MNI, three options are being discussed at the Eurogroup emergency session.

A look at the psycholgoy of traders as reflected in the price action ahead the new week which promises to be eventful.

Greek PM Tsipras just delivered the biggest Friday night bomb in recent European history: he stunned the Troika and his peers in Europe with the biggest shocker of all - a referendum announcement, aka the Greek "nuclear option", something which cost his predecessor George Papandreou his job. At this point there is no turning back, and the Greeks - of which 80% want to stay in the Euro even as 80% want an end to austerity - will get to choose their own fate. Whatever choice they make, they will now only have only themselves to blame.

We cannot forget that crisis is in itself a distraction as well. Whatever pain we do feel tomorrow, or the next day, or the next decade, remember who it was that caused it all: the international banks and their globalist political counterparts. No matter what happens, never be willing to accept a centralized system. No matter how reasonable or rational it might sound amid the terror of fiscal uncertainty, never give the beast what it wants. Refuse to conform to the dialectic. This is the only chance we have left to get back to true prosperity. Once we cross the line into the realm of worldwide institutionalized interdependency, we will never know prosperity or freedom again.

Update: TSIPRAS SAYS WILL CALL REFERENDUM ON GREEK DEAL WITH CREDITORS 

Scared by the recent surprise CHF event that caused many Forex brokers to completely collapse, brokers are taking no chances as Greece sits on the brink.  From one broker:

While we expained in great detail exactly what "good" the previous bailouts for Greece did for the Greek people, we thought the following gif was easier for many to digest...

Shanghai Gold Exchange volume climbed to a record today as prices declined incentivizing value driven Chinese buyers as Chinese stocks crashed 7.4%. Chinese stocks have had the biggest two-week loss in more than 18 years and are close to entering a bear market after extending losses from their June 12 peak to 19 percent in less than three weeks.

GREECE’S CREDITORS PROPOSE EU15.5B TIED TO AID DEAL: OFFICIAL

• Chinese Stock Plunge Leaves State Media Speechless (BBG)
• China’s Market Selloff Accelerates (WSJ)
• Any Deal on New Greek Bailout Funds Put Off Until Weekend (WSJ)
• ECB keeps ELA funding limit for Greece unchanged for third day in a row (Reuters)
• Impoverished Greek City Stands With Alexis Tsipras (WSJ)
• Why It Won’t Be a Default If Greece Misses IMF Payment Next Week (BBG)
• Valeant Makes Takeover Approach to Zoetis (WSJ) - or how Ackman assures himself another good T+3 quarter
• Obamacare ruling puts Supreme Court on hot seat in U.S. presidential race (Reuters)

Following yesterday's furious market drop in Chinese stocks, just before the overnight open, Morgan Stanley came out with a much distributed report urging investors "Not to buy this dip", and so they didn't. As a result, the Shanghai Composite imploded, at one point trading down 8% while the Chinext and Shenzhen markets crashed even more. This was the single biggest Shanghai Composite one-day drop since 2007, and with a close at 4192.87 the SHCOMP is now on the verge of a bear market, down 19% from its June 12 highs. China's second largest market, Shenzhen, is now officially in a bear market.