Grexit? The Greeks vote "no", Euro may be at risk, but what about the real changes needed in Europe?

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In 2012, Mario Draghi said the European Central Bank (ECB) would do whatever it takes for the euro. Those words have led to today's "No" vote in Greece, and a country/region playing with fire. The private bank, Notenstein, questioned the German economist Hans-Werner Sinn on whether Europe and to a certain degree, the global economy, are 'prisoners of the Euro'. The ECB actions have "only dragged out the crisis, by making it possible to avoid the energetic reforms to correct excessive wages and prices. So we've muddled on…". His view on Greece, before this referendum vote was called, was that in the short term "Greece will get more money to buy more time", but that over the longer term the euro could be at risk in a north south "asymmetrical power structure" which does not do enough to reform the southern economies and advance the competitiveness of the whole of europe.

Martin Wolf in his books the 'Shifts and the Shocks' lays out a strong case for the sickness of our financial and economic system and the lack of a strong enough response since the crisis. He too sees the economies in the west and europe in particular as muddling along.
In particular, "The euro has been a disaster. No other word will do. A project intended to strengthen solidarity, bring prosperity and weaken German economic domination of Europe has achieved precisely the opposite: it has undermined solidarity, destroyed prosperity and reinforced German domination, at least for while" (p.289, "Mending a Bad Marriage"). On balance he seemed to think when writing the book that the euro would be maintained, and Greece would remain within it at all costs, because an exit would be such a precedent setting break in the union.

In a recent article from June 16th, Wolf writes, "Neither side should underestimate the risks. It is also crucial to avoid the contempt so characteristic of the frayed nerves caused by failing negotiations." (Divorce in haste, repent at leisure - FT.com)

The worry now seems to be that the nationalist voices across the european project will once again rise up, as blame is easier to throw than confront the very difficult problems that leaders have failed to address before and especially since the Great Recession.

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HSBC thinks Greek banks will be closed next week -- whatever happens | Business Insider: "Banks are already reportedly running out of cash, with Greeks queueing up at ATMs to withdraw their €60-a-day limit. HSBC thinks the cash shortage and uncertainty that will accompany the aftermath of both a “Yes” and “No” vote means banks will stay closed on Tuesday, the day after the referendum result becomes clear."

Greece debt crisis: Greek voters reject bailout offer - BBC News: Greek voters have decisively rejected the terms of an international bailout. The final result in the referendum, published by the interior ministry, was 61.3% "No", against 38.7% who voted "Yes". Greece's governing Syriza party had campaigned for a "No", saying the bailout terms were humiliating. Their opponents warned that this could see Greece ejected from the eurozone, and a summit of eurozone heads of state has now been called for Tuesday. Greek Prime Minister Alexis Tsipras said late on Sunday that Greeks had voted for a "Europe of solidarity and democracy".

Greece on verge of euro exit - BBC News: This huge risk, of a Greek exit from the euro, is tonight preoccupying governments, central banks and investors all over the world. Monday will be a very hairy day on markets. And although the ECB is expected to continue to refuse to rescue Greek banks, it will chuck billions of euros at bond markets, to prevent the borrowing costs of other vulnerable euro economies rising too far and too fast.

Professor Hans-Werner Sinn: Prisoners of the euro? | Notenstein Private Bank ‒ your Swiss private bank: Europe is losing competitiveness and increasingly becoming a transfer union. Investors can live with this, but also need to invest outside Europe.

'The Shifts and the Shocks,' by Martin Wolf - The New York Times: "In the wake of the financial crisis, Wolf has become an even rarer beast: the highly influential radical. His is the loudest and foremost voice saying that the global policy response to the crisis was far too timid; that it all but ensures we will have an even worse crisis down the road; and that unless we start implementing extreme measures today, we will be running headlong into catastrophe."