The absolute moron's guide to the Greek debt crisis

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Tsipras, Europe Enter Game of Chicken After Greek Referendum

(NYMag) -- It's been three years since we brought you our last Moron's Guide to the Euro Crisis, and it continues to be a thing you should probably know about. You may think you've got it covered: the Greek economy is in trouble again, people are lining up at ATMs, and something bad is about to go down at Euro Disney. But trust us, when Greece's financial troubles come up at your next family gathering, you're going to want to understand the potential impact on the eurozone and the European Union — or at least be able to nod knowingly as your aunt worries about what this will do to her 401(k). Here's a brief guide for the woefully ignorant.

Hey, long time no see. This should be easier than usual. I actually know a lot about Greek history!
Oh, great! So as you know, Greece was in particularly rough shape after the 2008 financial crisis, and in 2010 it took bailout money from the troika – a fancy name for the European Commission, the European Central Bank, and the International Monetary Fund. That didn't do the trick, so it took another bailout in 2012, for a grand total of €240 billion. But those bailouts were accompanied by harsh austerity measures ...

Whoa, I meant, like, ancient Greek history. You know, the Persian Wars, Xerxes – oh, and McNulty!
You have 300 on Blu-ray.

Right. I thought the Greeks were total badasses. Why is their economy tanking?
Well, as I was saying, lenders told Greece that they had to implement austerity measures, or tax increases and steep budget cuts. This involved reducing wages, pensions, and spending on social services. Meanwhile, prices shot up. Time helpfully crunched the numbers to explain the Greek austerity measures to Americans. If the same cuts were imposed in the U.S. over the past few years, we would have seen the hourly minimum wage drop from $7.25 to $5.66, the average government worker's annual salary decrease from $51,340 to $43,639, and the average senior citizen's monthly check drop from $1,294 to $776.

So while the bailout money kept Greece afloat over the past five years, the larger scheme didn't work. Greece was able to keep making payments to its creditors, but its overall financial situation continued to spiral downward. Its economy shrunk by a quarter in the past five years, one in four Greeks are unemployed, and as of 2013, 44 percent of Greeks were living below the poverty line.

Oh man, I'm between jobs right now and I don't do anything but play video games all day. Who came up with that bright idea?
At first the architects of the austerity measures predicted that Greece's debt level was "sustainable," but in 2013 the IMF admitted that it made huge mistakes. In an internal report, the IMF concluded that its forecast was too optimistic, and it underestimated the damage austerity measures would do to the nation's economy. However, the bailouts prevented the Greek crisis from spreading other E.U. countries, and the IMF said "If we were in the same situation...we would have done the same thing again."

The Greeks must have been pissed.
Indeed. In January Greece elected the far left party Syriza, with new Prime Minister Alex Tsipras promising to end the "vicious cycle of austerity" by renegotiating the terms of the bailout loans and reducing the nation's debt. This made other European officials jittery, especially when Tsipras's first act as prime minister was to visit a memorial for Greeks killed by the Nazis, "a gesture wreathed in symbolism for a man who rails against the German-led 'occupation' of his country," as The Economistexplained.

What's their problem with Germany, specifically?
The Washington Post's Anne Applebaum summed it up nicely:

Germany is the largest, richest, most dynamic economy in the euro zone. Its taxpayers support the European institutions that lend public money to Greece, and its banks owned much of Greece's private debt, too. When the Germans declare that they will not allow Greece to change the terms of its bailout package, everybody listens.

Oof. Maybe they shouldn't have brought up the Nazi thing?
It probably didn't help. The new Greek government took a more confrontational tone and eased some reforms already in place, but after securing a five-month extension of its bailout program in February, Greece was forced to make numerous concessions in talks with its creditors. As the bailout's June 30 expiration date approached, last Friday the European creditors offered another five-month, $13.4-billion extension and said Greece must accept over the weekend.

Instead, Tsipras made a bold and risky move: the next day he walked away from the talks and called for a referendum on Sunday, July 5 to let Greeks decide whether they should accept the terms of the bailout. "After five months of tough negotiations, our partners ended up with a proposal in the form of an ultimatum," Tsipras said in a televised address, adding, "The goal of some of Greece's partners is the humiliation of an entire nation."

I don't get it – wasn't this Greek dude acting pretty rude for a guy begging for money?
Yes, but it's more complex than that. Greece had a €1.5 billion billion payment to the IMF due days later, and Tsipras was hoping E.U. leaders would fold rather than risking a Greek default, and possible exit from the eurozone. But after years of stressing about the effects of Greece's potential departure, E.U. leaders believe that the eurozone could survive a so-called "Grexit."

Grexawhat?
Let's look at it another way. Imagine you rack up thousands in credit card debt while you're unemployed and living in your mom's basement. She pays off the interest, but says you have to find a new job and start helping out around the house. Instead you buy a PS4 on your credit card and sit around playing Arkham Knight all day. Then you ask for more money because debt collectors are going to start coming after you. But rather than paying, this time your mom says she's going to have to cut you off completely and pulls your suitcase out of the attic.

That's not fair! She knows my manager at Cinnabon was totally out to get me.
Relax, we're talking about Europe, not your actual mom. The European Central bank said it wouldn't extend the emergency loan program, and on June 30 Greece became the first developed country to miss a debt payment to the IMF.

Okay, but what happened to my PS4?
Nothing, it was a just a metaphor. Let's focus.

Sorry. So what's Europe up to now?
Greek banks have been closed since last Monday, and ATM withdrawls have been limited to €60 a day. Greeks can still use credit and debit cards, but there have been long lines at ATMs and many are anxious about whether they'll have enough cash to make it through the week.

SEE: Greeks line up at ATMs across the country:

30 PHOTOS
Greeks line up outside banks, ATMs
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The absolute moron's guide to the Greek debt crisis
Pensioners try to get a number to enter inside a bank in Athens, Wednesday, July 1, 2015. About 1,000 bank branches around the country were ordered by the government to reopen Wednesday to help desperate pensioners without ATM cards cash up to 120 euros ($134) from their retirement checks. Eurozone finance ministers were set to weigh Greece's latest proposal for aid Wednesday. (AP Photo/Daniel Ochoa de Olza)
ATHENS, GREECE - JUNE 28: Greeks queue in front of the National Bank to use ATM to withdraw cash on June 28, 2015 in Athens, Greece. Greece is anxiously awaiting a decision by the European Central Bank on whether to increase the emergency liquidity assistance banks can draw on from the country's central bank. (Photo by Milos Bicanski/Getty Images)
People queue at the ATM machines of the Piraeus bank in central Athens, after the opening of the transactions on June 29, 2015. Greece ordered its banks to shut for one week and imposed capital controls today, sending markets tumbling after its citizens emptied ATMs on the eve of a potentially disastrous default. In a ray of hope, creditors left the door open to Greece for a last-ditch debt deal, in order to try and avert a dangerous default that could spark a Greek eurozone exit and raise serious questions about the future of the European Union. AFP PHOTO / LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)
Customers queue to withdraw cash from automated teller machines (ATM) outside a main branch of the National Bank of Greece SA in Thessaloniki, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Kontantinos Tsakalidis/Bloomberg via Getty Images
Customers queue to withdraw cash from automated teller machines (ATM) outside a main branch of the National Bank of Greece SA in Thessaloniki, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Kontantinos Tsakalidis/Bloomberg via Getty Images
Pensioners sit and wait on the steps outside a closed main branch of the National Bank of Greece SA in the hope that it might open in Thessaloniki, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Kontantinos Tsakalidis/Bloomberg via Getty Images
A customer places her daily cash machine withdrawal limit of 60 euros into her purse after using an automated teller machines (ATM) outside a closed Eurobank Ergasias SA bank branch in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Simon Dawson/Bloomberg via Getty Images
Pensioners wait at the entrance doors outside a closed main branch of the National Bank of Greece SA in the hope that it might open in Thessaloniki, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Kontantinos Tsakalidis/Bloomberg via Getty Images
Elderly people, who usually get their pensions at the end of the month, wait outside a closed bank in the northern Greek port city of Thessaloniki, Monday, June 29, 2015. Greece's five-year financial crisis took its most dramatic turn yet, with the cabinet deciding that Greek banks would remain shut for six business days and restrictions would be imposed on cash machine withdrawals. (AP Photo/Giannis Papanikos)
Elderly people, who usually get their pensions at the end of the month, wait outside a closed bank in the northern Greek port city of Thessaloniki, Monday, June 29, 2015. Greece's five-year financial crisis took its most dramatic turn yet, with the cabinet deciding that Greek banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. (AP Photo/Giannis Papanikos)
Elderly people, who usually get their pensions at the end of the month, wait outside a closed bank in Athens, Monday, June 29, 2015. Greece's five-year financial crisis took its most dramatic turn yet, with the cabinet deciding that Greek banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. (AP Photo/Thanassis Stavrakis)
An elderly woman, who usually get her pensions at the end of the month, waits outside a closed bank in Athens, Monday, June 29, 2015. Greece's five-year financial crisis took its most dramatic turn yet, with the cabinet deciding that Greek banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. (AP Photo/Petros Giannakouris)
An elderly woman looks through the closed shutters of a bank as others, who usually get their pensions at the end of the month, wait outside a closed bank in Athens, Monday, June 29, 2015. Greece's five-year financial crisis took its most dramatic turn yet, with the cabinet deciding that Greek banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. (AP Photo/Petros Giannakouris)
Elderly people, who usually get their pensions at the end of the month, wait outside a closed bank in Athens, Monday, June 29, 2015. Greece's five-year financial crisis took its most dramatic turn yet, with the cabinet deciding that Greek banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. (AP Photo/Petros Giannakouris)
Elderly people, who usually get their pensions at the end of the month, wait outside a closed bank in Athens, Monday, June 29, 2015. Greece's five-year financial crisis took its most dramatic turn yet, with the cabinet deciding that Greek banks would remain shut for six business days and restrictions would be imposed on cash withdrawals. (AP Photo/Petros Giannakouris)
A woman exits a supermarket with a cart full of items in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Simon Dawson/Bloomberg via Getty Images
A man exits a supermarket with a cart full of items in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Simon Dawson/Bloomberg via Getty Images
Customers shop for food products at a local supermarket in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Yorgos Karahalis/Bloomberg via Getty Images
A customer inspects chilled food products in a shopping aisle at a local supermarket in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Yorgos Karahalis/Bloomberg via Getty Images
An employee restocks shelves with bottles of sunflower oil at a local supermarket in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Yorgos Karahalis/Bloomberg via Getty Images
Customer carry groceries in shopping bags as they exit after shopping at a local supermarket in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Yorgos Karahalis/Bloomberg via Getty Images
A customer selects food products from a shelf at a local supermarket in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Yorgos Karahalis/Bloomberg via Getty Images
An employee walks across an empty forecourt of a gas station which has run out of unleaded petrol and has only diesel for sale in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Kostas Tsironis/Bloomberg via Getty Images
Passengers exit a public tram in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Simon Dawson/Bloomberg via Getty Images
A pedestrian stops to inspect the front pages of daily newspapers sitting on board beside a magazine vendor in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Simon Dawson/Bloomberg via Getty Images
Front pages showing stories about the Greek debt crisis and photographs of Alexis Tsipras, Greece's prime minister, hang from a magazine kiosk in Athens, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Simon Dawson/Bloomberg via Getty Images
Greek pensioners wait to collect their pension payments from a National Bank of Greece SA bank branch before opening in Thessaloniki, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Konstantinos Tsakalidis/Bloomberg via Getty Images
Greek pensioners wait to collect their pension payments from a National Bank of Greece SA bank branch before opening in Thessaloniki, Greece, on Monday, June 29, 2015. Greece shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system, heightening the risk it will be forced out of the euro. Photographer: Konstantinos Tsakalidis/Bloomberg via Getty Images
ATHENS, GREECE - JUNE 27: Greeks queue in front of the National Bank to use ATM to withdraw cash as Parliament holds an emergency session for the government's proposed referendum June 27, 2015 in Athens, Greece. Greece's fraught bailout talks with its creditors took a dramatic turn early Saturday, with the radical left government announcing a referendum in just over a week on the latest proposed deal . (Photo by Milos Bicanski/Getty Images)
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Greece essentially defaulted on its payment to the IMF, but there were no immediate consequences aside being mentioned in the same breath as Sudan, Somalia, Iraq, and Afghanistan. The country has asked for a third bailout, since the previous one expired on Tuesday, but Eurozone finance ministers said they won't make a decision until after Sunday's vote.

What's the voting on?
No one's really sure anymore. Greeks were originally supposed to decide whether they should accept the terms of an extension of the second bailout, but that proposal doesn't exist anymore. Tsipras has urged people to vote "no" to bolster his negotiating position, but others say he's just looking for a mandate to leave the eurozone. Here's how the New York Timesdescribed the decision Greeks face on Sunday:

Imagine the fate of your country hangs on a yes-or-no question. The question is drafted in cryptic, bureaucratic language and asks you to decide on an economic program that no longer exists. Leaders in neighboring countries are begging you to vote yes. Your government is begging you to vote no.


I vote "D) All of the above."
That's not ... well, actually that's kind of what the Greeks did. "No" won with 61.31 percent of the vote, but many told journalists that they rejected the idea that it was a vote for exiting the eurozone (and in a poll last week 74 percent of Greeks said they wanted to keep using the euro). Prime Minister Tsipras praised voters for making a "very brave choice," saying, "You gave me the power not to break away from Europe but to achieve an agreement with Europe that will take us away from austerity and bring us into a new era."

PHOTOS: See Greece after the referendum:

33 PHOTOS
Greece after the referendum
See Gallery
The absolute moron's guide to the Greek debt crisis
ATHENS, GREECE - JULY 13: Pensioners talk to bank staff as they wait to collect their pensions outside a National Bank of Greece branch in Kotzia Square on July 13, 2015 in Athens, Greece. Eurozone leaders have reportedly made an 'agreement' on the Greek debt crisis in Brussels. After lengthy talks EU President Donald Tusk tweeted that a bailout programme was 'all ready to go'. (Photo by Christopher Furlong/Getty Images)
Demonstrators hold a poster against the austerity policy of Germany prior to a special session of the parliament Bundestag on negotiations with Greece for a new bailout in Berlin, Germany, Friday, July 17, 2015. (AP Photo/Markus Schreiber)
A woman burns the flag of the ruling party Syriza, surrounded by journalists, in front of the Greek parliament in Athens, during an anti-EU demonstration in Athens calling for a no to any agreement with the creditors on July 13 , 2015. Eurozone leaders struck a deal on a bailout to prevent debt-stricken Greece from crashing out of the euro forcing Athens to push through draconian reforms in a matter of days. AFP PHOTO/ LOUISA GOULIAMAKI (Photo credit should read LOUISA GOULIAMAKI/AFP/Getty Images)
Leftist protester holds a greek flag in front of the Greek parliament as they take part an anti-EU demonstration in Athens calling for a 'NO' to any agreement with the creditors on July 13, 2015. Eurozone leaders struck a deal Monday on a bailout to prevent debt-stricken Greece from crashing out of the euro, forcing Athens to push through draconian reforms in a matter of days. AFP PHOTO / ANDREAS SOLARO (Photo credit should read ANDREAS SOLARO/AFP/Getty Images)
People read newspaper headlines in central Athens on July 13, 2015. Greece reached a desperately-needed bailout deal with the eurozone on July 13 after marathon overnight talks, in a historic agreement to prevent the country crashing out of the European single currency. The country's leftist Prime Minister Alexis Tsipras agreed to tough reforms after 17 hours of gruelling negotiations in return for a three-year bailout worth up to 86 billion euros ($96 billion), Greece's third rescue programme in five years. AFP PHOTO / ARIS MESSINIS (Photo credit should read ARIS MESSINIS/AFP/Getty Images)
A elderly man In a wheelchair waits with other pensioners outside a national bank branch to withdraw a maximum of 120 euros ($134) for the week in central Athens, Monday, July 13, 2015. A Eurozone summit has reached a tentative agreement with Athens on a bailout program that includes “serious reforms” and aid, removing an immediate threat of financial collapse in Greece. (AP Photo/Petros Giannakouris)
A bank employee distributes tag queue positions to elderly people to enter into the bank to withdraw a maximum of 120 euros ($134) for the week in central Athens, Monday, July 13, 2015. A Eurozone summit has reached a tentative agreement with Athens on a bailout program that includes “serious reforms” and aid, removing an immediate threat of financial collapse in Greece. (AP Photo/Emilio Morenatti)
Pensioners wait outside the main gate of the national bank of Greece to withdraw a maximum of 120 euros ($134) in central Athens, Thursday, July 9, 2015. With a deadline just hours away to come up with a detailed economic reform plan, Greece requested a new three-year rescue from its European partners Wednesday as signs grew its economy was sliding toward free-fall without an urgently needed bailout. (AP Photo/Emilio Morenatti)
A man passes in front of "NO" referendum posters in central Athens, Sunday, July 12, 2015. Greece has another chance Sunday to convince skeptical European creditors that it can be trusted to enact wide-ranging economic reforms which would safeguard its future in the common euro currency. (AP Photo/Petros Karadjias)
A presidential guard, right, stands guard at the tomb of the unknown soldier as riot police officers guard one of the entrances to the parliament during a demonstration of supporters of the no vote in central Athens, Sunday, July 12, 2015. Greece has another chance Sunday to convince skeptical European creditors that it can be trusted to enact wide-ranging economic reforms which would safeguard its future in the common euro currency. (AP Photo/Emilio Morenatti)
A man holds a tag queue position as he waits next to others pensioners outside the main gate of the national bank of Greece to withdraw a maximum of 120 euros ($134) in central Athens, Friday, July 10, 2015. Greece's Prime Minister Alexis Tsipras will seek backing for a harsh new austerity package from his party Friday to keep his country in the euro — less than a week after urging Greeks to reject milder cuts in a referendum. (AP Photo/Emilio Morenatti)
A pro-Euro demonstrator is seen behind a European Union flag during a rally in the northern Greek port city of Thessaloniki, Thursday, July 9, 2015. Hopes that Greece can get a rescue deal that will prevent a catastrophic exit from the euro rose on Thursday, after key creditors said they were open to discussing how to ease the country's debt load, a long-time sticking point in their talks. (AP Photo/Giannis Papanikos)
Pensioners wait outside the main gate of the national bank of Greece to withdraw a maximum of 120 euros ($134) in central Athens, Thursday, July 9, 2015. With a deadline just hours away to come up with a detailed economic reform plan, Greece requested a new three-year rescue from its European partners Wednesday as signs grew its economy was sliding toward free-fall without an urgently needed bailout. (AP Photo/Emilio Morenatti)
A pensioner leans against the main gate of the national bank of Greece as he waits to withdraw a maximum of 120 euros ($134) for the week in Athens in central Athens, Tuesday, July 7, 2015. Greek Prime Minister Alexis Tsipras heads Tuesday to Brussels, where he will try to use a bailout referendum victory to obtain a rescue deal with European leaders. (AP Photo/Emilio Morenatti)
Greek soldiers leave the ancient Acropolis hill, after they raised the Greek flag, in Athens, on Tuesday, July 7, 2015. Greek Prime Minister Alexis Tsipras was heading Tuesday to Brussels for an emergency meeting of euro zone leaders, where he will try to use a resounding referendum victory to eke out concessions from European creditors over a bailout for the crisis-ridden country. (AP Photo/Petros Giannakouris)
In this photo taken on Saturday, July 11, 2015, Mary Cromba, left, owner of a beachside restaurant is seen with her employees, as she prepares to add paper in the cashier machine in the village of Psatha about 65km (40 miles) west of Athens. The meal sales tax clause in the bailout proposal considered Sunday by European leaders would boost it from 13 percent to 23 percent, while hotels would see room sales taxes rise from 6.5 percent to 13 percent. (AP Photo/Spyros Tsakiris)
A butcher makes calculations inside his shop in central Athens, Tuesday, July 7, 2015. Greek Prime Minister Alexis Tsipras heads Tuesday to Brussels, where he will try to use a bailout referendum victory to obtain a rescue deal with European leaders. (AP Photo/Emilio Morenatti)
Pensioners wait outside the main gate of the national bank of Greece to withdraw a maximum of 120 euros ($134) in central Athens, Thursday, July 9, 2015. With a deadline just hours away to come up with a detailed economic reform plan, Greece requested a new three-year rescue from its European partners Wednesday as signs grew its economy was sliding toward free-fall without an urgently needed bailout. (AP Photo/Emilio Morenatti)
A man stands-in front of a discount shop that reads in Greek " you give a little you take a lot" in Athens, on Tuesday, July 7, 2015. Greek Prime Minister Alexis Tsipras was heading Tuesday to Brussels for an emergency meeting of eurozone leaders, where he will try to use a resounding referendum victory to eke out concessions from European creditors over a bailout for the crisis-ridden country. (AP Photo/Petros Giannakouris)
A man sells items in central Athens, Tuesday, July 7, 2015. Greek Prime Minister Alexis Tsipras heads Tuesday to Brussels, where he will try to use a bailout referendum victory to obtain a rescue deal with European leaders. (AP Photo/Emilio Morenatti)
A woman pays at a market in central Athens, Tuesday, July 7, 2015. Greek Prime Minister Alexis Tsipras heads Tuesday to Brussels, where he will try to use a bailout referendum victory to obtain a rescue deal with European leaders. (AP Photo/Emilio Morenatti)
Red spray paint covers a French-language Bank of Greece sign to read 'Bank of Merkel' in reference to German Chancellor Angela Merkel in Athens, Monday, July 6, 2015. Greek Finance Minister Yanis Varoufakis resigned Monday, saying he was told shortly after Greece's decisive referendum result that some other eurozone finance ministers and the country's other creditors would appreciate his not attending the ministers' meetings. (AP Photo/Thanassis Stavrakis)
A homeless sleeps at the entrance of a closed store with posters reading ''No'' in central Athens, Monday, July 6, 2015. Greece’s Finance Minister Yanis Varoufakis has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
Homeless sleep on the ground in central Athens, Monday, July 6, 2015. Greece’s finance minister has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
Needy people pray before eating at the Church-run Galini charity's soup kitchen in central Athens on Monday, July 6, 2015. Greece’s finance minister has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
A construction worker carries a wooden plank near a board with the Greek flag that reads in Portuguese: "I love you Greece, because of the courage against the imperialism!", in Lisbon, Monday, July 6, 2015. Greece's Finance Minister Yanis Varoufakis has resigned following Sunday's referendum in which the majority of voters said "no" to more austerity measures in exchange for another financial bailout. The board also reads in Greek: "No", in reference to Sunday's referendum. (AP Photo/Francisco Seco)
Needy people eat at the Church-run Galini charity's soup kitchen in central Athens on Monday, July 6, 2015. Greece’s finance minister has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
A pensioner holds a tag queue position as he lines up before entering into a bank to withdraw a maximum of 120 euros ($134) for the week in Athens, Monday, July 6, 2015. Greece’s Finance Minister Yanis Varoufakis has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
A bank employee distributes tag queue positions to elderly people to enter into the bank to withdraw a maximum of 120 euros ($134) for the week in Athens, Monday, July 6, 2015. Greece’s Finance Minister Yanis Varoufakis has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
People wait to enter into the national bank of Greece in Athens, Monday, July 6, 2015. Greece’s finance minister has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
A bank employee speaks to elderly people before allowing them to enter into the bank to withdraw a maximum of 120 euros ($134) for the week in Athens, Monday, July 6, 2015. Greece’s Finance Minister Yanis Varoufakis has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
Elderly people argue with a bank worker as they wait to be allowed into the bank to withdraw a maximum of 120 euros ($134) for the week in Athens, Monday, July 6, 2015. Greece’s Finance Minister Yanis Varoufakis has resigned following Sunday’s referendum in which the majority of voters said “no” to more austerity measures in exchange for another financial bailout. (AP Photo/Emilio Morenatti)
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So he won?
Sort of, but many European officials claim a deal is less likely now, and the situation is still dire. Greece is supposed to pay €3.5 billion to the European Central Bank on July 20 and Greek banks could collapse in the coming days. Former U.S. Treasury secretary Larry Summers wrote this weekend:

The referendum is probably the second most important event of the week in Greece. However it turns out, Greek banks will run out of cash early in the week, probably on Monday. There will be an immediate need to either provide them with some sort of IOU scrip to meet demand for funds or to resolve them in some way, as Greece lacks the capacity to create Euro. What the Europeans do and the decisions the Greeks make will shape the future of Greece and the Euro area.

If Greece wants to print more money, it will have to revert to the drachma.

So what happens if Greece stops using euros?
Analysts say that if Greeks exit the eurozone they could see a 40 percent drop in their purchasing power, and goods may even have to be rationed. Initially, the Greek people would be in a more painful situation, but over time they may have a better shot at recovery. "There is no modern parallel," Michael P. Dooley, professor of economics at University of California, Santa Cruz, told the Times. "That's one of the reasons why there is so much hesitation to do it; no one really knows what will happen." They could also wind up leaving the 28-nation European Union altogether.

Is that actually going to happen?
Maybe! Analysts are giving the eurozone exit anywhere from 40 percent to 80 percent probability. European officials have several meetings planned over the coming days, and this week will likely decide the fate of Greece and the eurozone.

Okay, how about I just keep playing Arkham Knight, and you let me know when you figure out if Europe still exists.
Deal.

This post was updated throughout following Sunday's referendum.

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