With Greek banks closed does that mean that businesses have a surplus of cash to be deposited?

Is credit still being extended? Can people use credit cards? Or, are the banks frozen?

@JLeslie Good questions. I don’t know.

No.
‘It means nobody is spending as much money.
Which means business are trying to pay their bills with less income.
Which means they will buy less product which means the makers of those products won’t be able to sell as much, and in the meantime they have to pay their bills….etc.

The money supply is static at the moment, so there is neither an increase in cash somewhere or a decrease, because those who are getting cash need to spend it. The economy will quickly contract though, as the velocity of money drops. When payrolls cannot be met because of no cases, then the ripple through the economy will be rapid.

The British foreign office is advising those traveling to Greece to take enough cash ‘to cover the duration of your stay, emergencies, unforeseen circumstances and any unexpected delays’.

And there is a big shortage of cash. So I expect we will here about some robberies.

Just essentials are being bought. Temporary freeze with lots of shit ahead. True Greek tragedy!

No. They’re probably holding on to the cash in case the economy goes bust so they can have cash while others don’t.