Creditors what he called terrorism. Meantime, greek banks remain closed today. The atms are running out of money. The ecb is holding a Conference Call today tole try and decide how long to keep a life live at the banks. Meantime Germanys Angela Merkel will meet with Frances Francois hollande today. And theres a meeting of creditors today. We were talking before the show it just is confounding to me just watching it happen. It almost looks like you get so defiant at some point, youd almost rather inflict your own demise, than have it inflicted by somebody else. And i think thats part of what happened here. Merkel saying by the way, she thinking the greek Prime Minister basically drug his people into a wall. If youre a creditor if youre a socialist and smart money like thought that would never happen. Once it happened i guess all bets are off. You cant assume that theyre going to have some sort of all attitude about in the middle east, about democracy, no longer do i think we can expect democracy and our way of life in the middle east. I think obviously in america, we get arrogant about our the way we do things. We cant export democratic principles. By the way, this wasnt this was the europeans trying to ban together a very wide variety of ways of doing it. Its notion of paying back your debt is not a you know not not running up a big tab and like the guy with the college loans. Are we supposed to celebrate this guy because hes taking a stand . The guest that we had on set a few weeks ago, saying look i didnt pay back my Student Loans and you shouldnt either. How about progressive economists and Bernie Sanders. Its a huge victory. You know paul krugman or what michelle is going to talk to someone. This is a heroic about. Ct. Its almost as if they can promote socialist reend distribution, its not just in this country, its in england, redistribution everywhere. I think you and i both assume they had would recognize that this would be incredibly difficult for the greek people. So much is imported in greece anything that they have is worth less. If youre protecting your pension going much less far. And the biggest side of it seems to be preferable to im still not convinced of that. The referendum question itself was such a strange question. This was not do you want to say in the European Union or not which is the way other European Countries have in this. That is not the question they voted on. Im not sure the greeks understood what this would mean. Look, other european leaders now have a choice too. Right. Well see whether merkel doesnt want to preside over the dissolution of it. The whole idea of the union where its got greece here and germany with totally different culture cultures. The germans are resentful that their welfare checks its more resentful it is. And government officials calling it terrorism when people having to ask some progress reform. But as they point out, if merkel blinks than ever other country trying to progress reforms will think they can come in. I did try to put myself in the greeks position over the weekend and trying to think why this would go this direction. I can understand them saying look, the taxes are unbearable. What you have asked is too much. I think they should have cut back on some of the taxes theyre asking for at this point. I think they should have gone ahead and said, look as long as youve changed to try to get structurally more in line with a democratic outcome in some of these, that would have made more sense. Didnt you use the term i just cant help cutting off your nose to spite your face. Money today for 60 euros for the atms, there could be more tomorrow. Coverage over the weeks, justend, everyone going to the polls saying look im thinking about my kids. Is this for the next generation . If the bank out of money before then then the banks could be basically be in default. If youre not giving any more euros, then youre in a position of coming up with the ious. And youre essentially out of the union at that point, youre creating your own currency . I was watching that happen yesterday, i thought, you got to be kidding me. Then the soccer game came on. And they scored. The news cycle was so it made me forget about greece for a while. I hope it replaces its crazy because its important and has wide ranging implications but for a while youre able to take a break. The womens team huge congratulations. That ties all back to one thing jersey strong. Carli lloyd. Jersey strong. And we see Chris Christie tweeting jersey killing it in the world cup. And the other one as well. The other big story, and this is well see whether this will event really take center stage away from greece at some point, china. Major support announced over the weekend intent to stabilize stocks. Shanghai is 30 here winding it up in the last few weeks. The hang seng is getting wobbly too. Brokerage and Fund Managers vowing and regulators announced that china would cut ipos and capital measures and support longterm investors entering the market. From what weve been told its hard to say that is this is the beginning of some horrific contagion. But looking today, its not that bad. And responding by ive been surprised that the u. S. Futures and the european markets have done as well as they have. Lets take a look at how everyone else seems to be faring given the vote over the weekend with greece. Take a look the u. S. Futures and they are lower. At this point, looks like the dow is down by 109 points. S p futures down by 11 points. Nasdaq off by about 27 points. Take a look at the early trading in europe. These markets are open at this hour. The dax is down. Again down by 1 . Which had you told me this on friday that the vote would go this direction that it would be an overwhelming no vote i wouldnt have bet that this would be the loss this is queer dealing with. The cac is down by 1. 2 . The ftse down by 0. 25 . Italy that market is down by 2 1 2 . And portugal that market is down by 2 . The european yield, fiveyearold at 31 . Bund is still at 1 . In germany, the tenyear there, trading at 0. 751 . Well take a look at what happened in arabsiaasia. The shanghai down up by 2. 41 . And the crude oil dropped to 54. 42. And in terms of the fair trade that tells you the yields are below what they had been on friday. Again, not a massive move when you consider this could be the unravel of the eu. And the dow up against the euro trading at 1. 1031. And the gold prices look like theyre barely budging. The one thing i found somehow, the way it was all said and done i cant figure out how voters voted. I think the first bush is going too pull out against clinton. Having trouble separating yourself . I was pretty sure the first bush was going to get reelected. Ive given up on retails. I have given up on that. I thought even when i saw the early returns, i thought well this is just the early returns. But the one thing that i always thought would be a lastminute deal just because i assumed would be so damaging to the population to actually now, will it be a lastminute deal or is not . Maybe. Im thinking legislation ging less and less. Lastminute deal i still think they would do it. I dont see how both sides find facesaving in this michelle. They seem to be just pushing people apart. I dont know how they can both ever get together now and save face, is it still possible . Reporter im not sure joe, we hear the commentary out of the german its incredibly stride strident. The Prime Minister feels emboldened by the vote last night. Lets show you the video from last night. Celebratory feeling here in the square. 61 of the voters voted no in heavy turnout. Only 31 have come in with a yes. The other big news the finance minister Yanis Varoufakis has resigned. He had told the world if theres a yes vote hes definitely resigning but this morning, we learned that he has stepped down as well even though they got the no vote that they were wanting. What happens next is the big question. The Prime Minister has promised if he got a strong no vote he would go to brussels and he could secure a deal between 24 to 48 hours. And the greek finance minister the cnbc producers caught up with him yesterday and reiterated the same thing. Reporter how do you see it tonight . I dont need that. Reporter if its a no vote, how quickly do you think you can get a deal. Fast. Reporter when do you think . I dont know. Reporter in addition to that, the finance minister has gone on record with a couple different outlooks saying that he thinks the banks are going to open on tuesday. What does the ecb decide in terms of whether or not theyre actually going to send more physical cash to this country. Back to you. Weve talked about this a lot. And i always mentioned stiglets and krugman and Bernie Sanders cheering on inging on the group. I haventvnhavent read the New York Times, ive read the journal. Maybe you can make it clear why we should celebrate, you know a country that is not going to pay back its debt. What a day. Our guest there on the balcony has been very patient and i think listening keenly to your discussion so far. Professor james gal brea. A good friend with Yanis Varoufakis. Good to have you here on the balcony. My pleasure. You can give us any insight into why the greek finance minister resigned . I think the primary reason was to help facilitate a rapid deal with the creditors. It was clear that he was an obstacle. He feld that it would be better if he stepped aside. Reporter he has said repeatedly if they got the no vote that they could get a deal in 24 to 48 hours . It depends on the creditors but the elements of a reasonable deal there are. It was spelled not a letter from the Prime Minister to the european partners. It include a restructure of bet. And receipt opening of the banks which would require the support of the European Central bank which should never have closed in the first place. You really think that based on all the rules that the ecb follows they shouldnt have cut off liquidity when the bank runs down in the middle of the night . Its largely related to intrabank loans. It was a selfinduced bank run. And it was part of a political pressure move which the ecb should never have been part of. And walking that back and getting the banks up and running in the next few days a sign of good faith is extremely important. Reporter do you think thats going to happen . I have no idea whats going to happen in frankfurt. They tried to pressure them into accepting the terpms. And the population answered that with a great deal of courage. I think that must have sent a shock wave back to the rest of the europe that was expecting a strong yes vote. And a the restability of a government like the one that was defeated in january. And of course its very clear that the big population has none of that. Reporter joe kernin has a question for you. Just watching everything happening. I guess the one thing i cant understand is how are we to discern the difference between something thats going to be called austerity, suffocating austerity. Versus proworth moves that everyone thinks down the road are necessary to set some of these southern European Countries up for longterm success . It seems like a no to more austerity many times is sort of a no to progrowth reforms. And it just seems like you know, or welfare checks will be just coming forever. If you dont get structure reforms to make things better long term. How do we distinguish between those two . Okay. Three points. Greece is not receiving any kind of subsidies from the European Union for quite a long time from the eurozone for a long time now. Secondly greece was bankrupted in 2010 five years ago. The proper thing to do at that time was to restructure. Pay down the debt. That wasnt done. That wasnt done to rescue the banks to transfer the credits, the debts, to the taxpayers. The creditors really made a huge mistake. The. They need to fix that mistake. Greece since then has been subject to absolutely stringent as you usterity austerity. And the progrowth reforms has been jie zbantgigantic. Reporter if i can follow up on joes question raising taxes will be recession father . Absolutely. Reporter but what has happened here they really havent opened that up. You have all of this kals calcifiation that happens, its costly and its pay as you go. Those things didnt change . Well the new government is committed to longterm Structural Reforms including Public Administration and the tax system. But what the creditors have been asking for are just flat cuts in pensions going to people who are only getting 350 euro a month now, below the poverty level. Well below that increase. And for tax increases as you mentioned which would directly hurt the competitiveness of the tourist economy that blames the taxes on hotels for example from 13 to 23 , you are going to make greece a much more expensive location, compared to ed to competitors like turkey. And thats not good for the growth of the economy. These are suggesting that the agenda is not bode for dead collection. Reporter how about the issue go ahead, becky. Professor, even if anything youre saying is true even if you push back and say that we dont want this or the greeks have said forget this were not going to take this deal do you this understanding that you could be headed down a much worse path. That it could be a much more painful path for the people. That to many people seems like its completely irresponsible . That is indeed the choice that was before the greek public. They understood it very clearly. And they chose not to continue on a path that was dicktated to them on the outside that proved catastrophic over the last five years. So, yeah theyre taking a bit of a risk maybe theyll get a better deal. No one is talking about exit here. But theyre not the only ones that get to make that decision. Youre asking the creditors and the creditors are just as angry as the people. Thats entirely right. No, thats exactly correct. If the creditors, if the governments of europe choose to break up University Row zone onp the eurozone on their own, that will be all their responsibility but not what the greek people want. We keep using the word union and union seems like we should come up with another word. The way you that describe it professor. The creditors want this. And the greek people want this. No one is on the same page. It just seems like this isnt a real union. And if its not a real union and disparate parties, its like aishaa charade to call it a union . Well it say union. But its based on principles which are highly dysfunctional. And the greek government backed by its electoret are trying to end. Its what Yanis Varoufakis has said in public. These are issues that extremely well trained economists are against arguments which have clearly failed over the last years. Reporter can we focus on one single point, i think its what makes the germans in particular crazy, by the greek governments own admission, when you look at the paperwork theyve submitted, theyve admitted that the civil servants, the retirement age is 56. And women, even lower. Theyre saying were not asking to you cut pensions, were asking you to have the age go open. Is that so problematic . Not problematic at all. The government has a group that this should be reformed. Particularly there are sectors that employees are dumped into the public system at relatively early ages. There are two or three points to make about it. One is that the country has no effective Unemployment Insurance so early retirement has been kind of a safety net of last resort for a lot of people. Its a safety net which has been taken up by many people because there are no jobs and havent been for five years. And secondly beyond that the creditors have in fact been investing upon pension, they would like a percentage of gdp taken out offof pensions this year. And that would thrust elderly people into hinger and homelessness. Reporter professor thank you for joining us. The audience will be asking youre the son of very famous john galbraith. Yes, i am. And that doesnt sound like everybody is in the same if they want to control their fate themselves, then they want to be greece. Then you cant be part of the union if youre not going to what gets me is both sides seem to be convinced that they are completely in the right. And the other side is wrong. That is when youre head haded hed to why are we talking union . I have never seen a divorce where both sides were comfortable. But if the greeks want to determine their own fate is what they voted for, if you determine your own fate then you need to go back and be greece. I dont know. You can understand the points of how difficult this as youusterity has been. You can understand that. When we come back we will talk about the situation and what it means for investors. And live reports from beijing. Squawk box will be right back. Ah aflac . Aflac i thought you said this guy was the best . Oh, hes a horrible stylist. Gah . But hes the best at paying claims fast really. Mmhmm. Paid mine in just one day. One day . Yea. Aaaflaaaac in just one day, we approve and pay. One day pay, only from aflac. A one, a two, a three percent cash back next. Theres gotta be a better way to find the right card. Creditcards. Com lets you compare hundreds of cards to find the one thats right for you. Just search, compare, and apply at creditcards. Com. Box, everyone. We have two big market stories this morning. Weve been talking about greece. Also the situation in china. And china measures made this week. Joined from beijing, eunice. Reporter thanks so long, becky, after a weeks long correction, they come in with guns blazing with heavy ammunition to shore up confidence. The leaders gathered including the chinese premier himself. The brokeages were mobilized. The ipos were suspended and the central bank called on to provide lid quiddity sa assistance to a governmentbacked finance company which puts money in the hands of investors at the end of the day and borrow more on the stock market. The leaders here are very concerned about the potential social fallout. A lot of the investors are knew inexperienced and have borrowed a lot of money on margins. Weve seen massive gyrations. The shanghai market was up. And fell by a closing high of about 2 . A lot of investors are talking about now theyre not so sure these measures are really going to have any lasting impact. A lot of people were talking about