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February 8

On this day the Greek Syrzia Government, after being ignored by the European Union President on the matter, declared that Greece would indeed default on its bailout loans placing that blame on the EU.

Series II of Greece Starts The Rot: Greece Under Fire Part 06The Greek Prime Minister Alexis Tsipras said "We have been given no choice. We have constantly asked for negotiations. We have tried to be reasonable. We have tried everything".

"In return the European Union President has ignored us. He has repeatedly refused to listen".

"I would have thought that our limitation on international money transfers was warning enough. Instead the EU has forced us into this unenviable position".

"Consequentially Greece will default on all its bailout loans effective immediately".

The reaction from Brussels was swift and harsh. And it almost seemed premeditated according to several political commentators.

The Commissioner for Economic and Monetary Affairs and the Euro Jyrki Katainen announced that Greece's permission to mint any more euros would be suspended. They would not, however, be expelled from the eurozone for the time being.

Yet that would not be the worst of it. All Greek overseas assets would now be seized by the European Union as collateral on the Greek government defaulting on the loans in question.

Katainen declared "We are going to treat this like any corporation defaulting on its loans or an individual defaulting on their mortgage.

"As a consequence all Greek assets owned within the European Union will be seized accordingly".

When Katainen was asked about assets in Greece, and indeed Greece itself, Katainen replied that any such decision would be made by the European Union President.

By the end of the day billions of euros in Greek assets, including bank accounts, were thus seized against the protests of the Greek government. Needless to say another challenge was lodged with the European Court of Justice over the matter.

Markets across the globe reacted poorly, to the situation, and the euro took a beating regardless of the reassurances from the European Commission and the European Central Bank that the seizure of Greek assets would offset, to a large degree, any damage done to the European economy and banking system.

Yet the markets clearly did not share the same confidence with the euro reaching a record low against the US dollar, with it dropping well past equilibrium to $0.88 at one stage, but finally rallying back to $0.95. It faired slightly better against pound sterling buying £0.60 to the euro.