It looks like you're using an Ad Blocker.

Please white-list or disable AboveTopSecret.com in your ad-blocking tool.

Thank you.

 

Some features of ATS will be disabled while you continue to use an ad-blocker.

 

Greek euro exit looms closer as banks crumble

page: 1
5

log in

join
share:

posted on May, 16 2012 @ 05:05 PM
link   
UK Telegraph


A tsunami of capital flight from Greece threatens to overwhelm the authorities, forcing the country out of the euro before fresh elections in June.

Economists warned that the Greek financial system could crumble within weeks or days unless the European Central Bank steps up support.

President Karolos Papoulias told party leaders that banks had lost €700m in withdrawals on Monday alone as citizens rush to pre-empt capital controls and a much-feared return to the Drachma.

He cited central bank warnings that "great fear" might soon escalate to panic. The leaked details lend credence to claims that capital flight by both savers and firms have reached €4bn a week since the triumph of anti-bailout parties on May 6.

Steen Jakobsen from Danske Bank said outflows are becoming unstoppable, not helped by open talk in EU circles of `technical’ plans for Greek withdrawal.

"This has a self-fulfilling prophecy built into it and I don’t think we can get to June. The fuse is burning and the only two options now are a controlled explosion where Germany steps in to ensure an orderly exit, or an uncontrolled explosion," he said.


So what y'all think? The ECB will step up its support and rescue Greece to keep it in the Euro?

Apparently the stakes are too high not too...

IIF's Charles Dallara says Greek exit 'somewhere between catastrophic and armageddon'


The damage to the rest of Europe from Greece leaving the euro would be "somewhere between catastrophic and Armageddon", the chief negotiator for the body representing private sector holders of Greek bonds said on Wednesday.

Charles Dallara, who as head of the International Institute of Finance (IIF) spent months in Athens negotiating the largest ever sovereign debt restructuring, also said he had seen evidence that more people were moving their cash out of Greece.

"There has been a pick up of deposit flight from Greece," Mr Dallara told reporters, but added he thought this could be stabilised "once you get a new government in place, if that government reaffirms its intention to remain in the euro zone".

He was speaking on a visit to Ireland, which followed Greece into an international bailout in 2010 but has been far more successful in boosting exports to keep the economy afloat while slashing government spending.

Policymakers have begun to speak openly of the risk that Greece, now in its fifth year of recession, might leave the euro. Mr Dallara said the costs of a Greek exit would be so severe that Europe has to find a palatable way of solving their woes.

"I think that it (a Greek exit) is possible, but I wouldn't call it inevitable and I wouldn't even call it likely because the costs for Greece, for Europe and for the global economy are likely each in their own way to be immense," Mr Dallara said in a speech.

"The pressures on Spain, Portugal, even Italy and conceivably Ireland could be immense and the need for Europe to step up with much greater support for the banking systems would be substantial."


Once Greece exits, anything of any imaginable financial catastrophes could ensue.




posted on May, 16 2012 @ 06:11 PM
link   
Well, if the Greeks are making a run on the banks and withdrawing Euros.
The EU must either uphold or fold.
I would hope to see the Greeks leave the EU and reinstate their own currency just after the Greeks get all of those Euros outta the bank.
Talk about a perfect storm, last one holding the ball loses.



posted on May, 16 2012 @ 07:42 PM
link   
reply to post by g146541
 


LOl and then onto Spain, Italy, Portugal, the world.



posted on May, 16 2012 @ 08:05 PM
link   
Will the Greek people still be able to feed themselves? Or will people die because of this event?



posted on May, 16 2012 @ 08:19 PM
link   

Originally posted by NuclearMitochondria
Will the Greek people still be able to feed themselves? Or will people die because of this event?


Some world organization will come to their aid. The U.N. will make sure of that. I personally think they should take it out of the fat retirement packages of the banker CEO's who recently bailed while they could

Des



posted on May, 16 2012 @ 08:21 PM
link   
Thanks for posting this story. I had not heard Greek banks could cause Greece to stop using the Euro sooner than the June elections.

In essense, it sounds like Greece is suffering from massive bank runs which is threatening to make the banks insolvent. Let me know if I don't have this correct. If Greek banks become insolvent, then the loans from the European Union and IMF won't get paid back. Correct? Suddenly other countries with a lot of Greek loans such as Spain, Italy, Ireland, Portugal either have large Greek loans or will suffer huge increases in borrowing costs to pay interest on their own debts and create the perceived threat among investors that they will not be paid back in full further increasing those countries debt payments. This could in turn spill over to the US in a disaster scenario affecting US banks losing billions in bad loans to European countries in default. US citizens who thought they would not be affected could suddenly wake up and hear about a bank holiday here in the US and days later after the dust settled, find out their money market accounts have 30 percent less than they used to. Apparently 30% of money market funds are invested in Europe. I'm just saying worst case scenario.

Let me know if my interpretation is wrong.
Hopefully worst case never happens.



posted on May, 16 2012 @ 11:41 PM
link   
ECB stops monetary policy operations to some Greek banks-Reuters
Senior Judge now incharge of emergency Govt in Greece unitl June 17 Election




top topics



 
5

log in

join