Electricity suppliers could shut the lights off in Greece

Wow.

Fresh signs that the wolf is knocking on Greece’s door. That nation’s power-grid operator is in arrears to foreign electricity suppliers to the tune of 327 million euros. Consequently, at least four suppliers from Germany, Bulgaria, Switzerland, and Italy have now cut off or reduced electricity exports to Greece. This is what happens when countries cannot or will not pay their bills.
At the end of May the world’s biggest trade credit insurer, Euler Hermes, suspended underwriting new policies on exports to Greece for fear of lack of Greek payment. Athens certainly does not boast the most modern economy in Europe, but even so, the Greeks are going to find it hard to do much at all without electricity. What is the Greek word for “candle,” anyway?
Finally, Spanish borrowing costs were driven to new highs as Madrid announced it will formally seek a too little, too late bailout for its banks on Monday. Spanish interest rates are the market’s way of saying “game’s up, folks.”