Posted on 05/16/2012 2:04:01 PM PDT by bruinbirdman
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.
The growing alarm comes as judge Panagiotis Pikrammenos was picked as Greece’s caretaker leader until the next vote on June 17. Polls show the Left-wing Syriza leader Alexis Tsipras emerging as clear victor.
Mr Tsipras has vowed to tear up the EU-IMF bail-out `Memorandum’, exhorting German Chancellor Angela Merkel to "stop playing poker with the lives of people". The Greek impasse has rattled markets, with the FTSE 100 down 0.6pc to 5,405 yesterday. Spanish lender Bankia fell 11pc in Madrid. Gold tumbled $17 to a ten-month low of $1,540 on dollar strength.
The crisis is replicating the pattern of fixed-exchange ruptures through
(Excerpt) Read more at telegraph.co.uk ...
So...it’s a good time to vacation in Greece?
You help my people now...Or you hurt them.
Looks like the final death spiral has begun for Greece.
Can’t blame the Greeks for pulling their Euros out. They had better convert those EUROS into something like Gold before the EUROS they pulled out are worthless.
Bastard.
Just keep a keen eye on your wallet and pursue a permit to carry ahead of your trip.
It’s a great time to visit. They’ve got brand new ruins!
“Those that fail to learn from history, are doomed to repeat it”
It’s a great time to visit. They’ve got brand new ruins!
_________________
With more to come soon!
I wouldn’t go to Greece for all the ouzo in Heraklion at this point. Like I said on another thread, when TSHTF, you’re going to see “civil disturbances” the like of which haven’t been seen in Greece since the Peleponnesean War.
Wow! With so many people sitting on a wad of cash at home & in their possession, burglars & muggers must be drooling at the opportunities.
Actually they’re going to be far more interested in things like food and medical supplies which very soon won’t be available in Greece at any price.
Then the real fun will start.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.