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Anxious Greeks Emptying Their Bank Accounts
http://www.spiegel.de/international/europe/0,1518,802051,00.html ^

Posted on 12/06/2011 9:57:51 AM PST by kcvl

Many Greeks are draining their savings accounts because they are out of work, face rising taxes or are afraid the country will be forced to leave the euro zone. By withdrawing money, they are forcing banks to scale back their lending -- and are inadvertently making the recession even worse.

Georgios Provopoulos, the governor of the central bank of Greece, is a man of statistics, and they speak a clear language. "In September and October, savings and time deposits fell by a further 13 to 14 billion euros. In the first 10 days of November the decline continued on a large scale," he recently told the economic affairs committee of the Greek parliament.

With disarming honesty, the central banker explained to the lawmakers why the Greek economy isn't managing to recover from a recession that has gone on for three years now: "Our banking system lacks the scope to finance growth."

He means that the outflow of funds from Greek bank accounts has been accelerating rapidly. At the start of 2010, savings and time deposits held by private households in Greece totalled €237.7 billion -- by the end of 2011, they had fallen by €49 billion. Since then, the decline has been gaining momentum. Savings fell by a further €5.4 billion in September and by an estimated €8.5 billion in October -- the biggest monthly outflow of funds since the start of the debt crisis in late 2009.

The raid on bank accounts stems from deep uncertainty in Greek households which culminated in early November during the political turmoil that followed the announcement by then-Prime Minister Georgios Papandreou of a referendum on the second Greek bailout package.

(Excerpt) Read more at spiegel.de ...


TOPICS: News/Current Events
KEYWORDS: bankrun; default; economy; getreadyhereitcomes; greatestdepression; greece; mafia; organizedcrime; prepperping; resorts; survivalping; thegreatrecession

1 posted on 12/06/2011 9:57:56 AM PST by kcvl
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To: kcvl

A slow motion bank run, with out the hype. The results will be the same of course, empty banks at some point will not be able to barrow on deposits, GAME OVER!!!


2 posted on 12/06/2011 10:02:19 AM PST by qman (If you are prepared you can't be surprised.)
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To: kcvl

Ah, the withdrawl of ones own money is listed as “the raid on the banks.” There’s no end to the sense of entitlement in a fascist pig.


3 posted on 12/06/2011 10:02:34 AM PST by JDW11235 (I think I got it now!)
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To: kcvl

I can’t say I blame them for wanting to take out their cash, but this is NOT a good thing and will only compound their problems.


4 posted on 12/06/2011 10:04:20 AM PST by diverteach (If I find liberals in heaven after my death.....I WILL BE PISSED!!!)
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To: kcvl

We'll never save that old Parthenon and Loan!

5 posted on 12/06/2011 10:04:37 AM PST by freedumb2003 (Spoiler Alert! The secret to Terra Nova: THEY ARE ALL DEAD!!!)
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To: diverteach

Maybe, but so would a bank holiday, ala Argentina. Frankly, they’re up a creek either way. So are we, actually.


6 posted on 12/06/2011 10:07:55 AM PST by JDW11235 (I think I got it now!)
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To: diverteach
"I can’t say I blame them for wanting to take out their cash, but this is NOT a good thing and will only compound their problems."

It may compound the problems of the MANY, but at least each individual will have THEIR cash. I guess in socialist countries, I guess that collective good concept only goes so far.

Why would anyone keep their money in a bank when failure of the entire system is inevitable? Unfortunately, this is coming to a neighborhood near all of us. Our congress is certainly whistling past the graveyard.

7 posted on 12/06/2011 10:12:54 AM PST by JustaDumbBlonde (Don't wish doom on your enemies. Plan it.)
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To: kcvl

They are trying to withdraw it before the government and the EU steal it; however, it’s too late and they are toast!


8 posted on 12/06/2011 10:14:41 AM PST by RetiredTexasVet (There's a pill for just about everything ... except stupid!)
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To: kcvl

If it can get worse, the Greeks will find a way to do it.


9 posted on 12/06/2011 10:15:56 AM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: kcvl

They are either

A) Spending their savings on paycheck-to-paycheck items

or

B) Converting their euro’s to something they can later trade with, i.e. gold, US bonds, etc.

America’s future.


10 posted on 12/06/2011 10:16:43 AM PST by MontaniSemperLiberi (Moutaineers are Always Free)
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To: MontaniSemperLiberi

You take your euros out of the bank and hold them. When they go back to the drachma your money in the bank is devalued, where you can still hold the stronger euro (relatively speaking.). I would buy gold or silver or dollars. Of curse dollars ain’t going to be worth much down the road later.


11 posted on 12/06/2011 10:21:08 AM PST by Vermont Lt (I just don't like anything about the President. And I don't think he's a nice guy.)
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To: qman

In one article I believe I read last week on Free Republic, an economist said that Europe has about ten days left. It’s a short enough time span for me to wait and watch. ;-)


12 posted on 12/06/2011 10:21:53 AM PST by cuban leaf (Were doomed! Details at eleven.)
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To: JustaDumbBlonde

There is a lesson to be learned in all this. That is, get your money out while the gettin is good. Obammy and Co will certainly try to take our assets and 401ks when SS runs out and grandma doesnt have her monthly check.


13 posted on 12/06/2011 10:22:54 AM PST by Soothesayer9
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To: Vermont Lt

bingo

one euro in the hand today may be worth 1 millon drachma in the bush next year


14 posted on 12/06/2011 10:25:25 AM PST by silverleaf (common sense is not so common- voltaire)
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To: kcvl
Many Greeks are draining their savings accounts because they are out of work, face rising taxes or are afraid the country will be forced to leave the euro zone.

They might also fear a trick the Mexican govt pulled on their people in the '70s. They seized all their citizens' US dollar bank accounts and converted them to pesos at the prevailing rate. Next they devalued the peso 1,000 to 1, then told the account holders they could convert back to US dollars. Small wonder the Mexicans to this day, prefer to deal keep little money in the banks.

So . . . I half expect the Greeks to do the same with a Euro/Drachma conversion.

15 posted on 12/06/2011 10:27:07 AM PST by Oatka (This is the USA, assimilate or evaporate.)
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To: kcvl

16 posted on 12/06/2011 10:30:21 AM PST by crusty old prospector
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To: JustaDumbBlonde

I agree with everything you just said. Way to go!


17 posted on 12/06/2011 10:30:49 AM PST by JDW11235 (I think I got it now!)
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To: cuban leaf
In one article I believe I read last week on Free Republic, an economist said that Europe has about ten days left. It’s a short enough time span for me to wait and watch. ;-)

Yeah. Instant gratification, in a perverse sense.

18 posted on 12/06/2011 10:31:40 AM PST by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: Soothesayer9

How can you totally escape a national sales tax, national property tax, etc. Even if you have gold bars in your private safe, we could still be screwed. Scares the —— out of me.


19 posted on 12/06/2011 10:34:45 AM PST by sanjuanbob (Festina Lente)
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To: kcvl
With the largest bill at €500, even a pretty big bank account will only make a small lump in the mattress. If I were Greek, there would be no way I would keep any significant money in any European bank. The EU is even leaning on the Swiss to return Greek deposits so they are easier to force conversion back to drachmas if Greece leaves the euro and devalues. You can bet the other European countries will do the same.
20 posted on 12/06/2011 10:36:01 AM PST by KarlInOhio (Herman Cain: possibly the escapee most dangerous to the Democrats since Frederick Douglass.)
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To: kcvl

The Greek Socialist have run out of other people’s money. It’s time for them to stand on their own two feet.


21 posted on 12/06/2011 10:41:50 AM PST by steveab (When was the last time someone tried to sell you a CO2 induced climate control system for your home?)
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To: silverleaf
drachma in the bush

Even for a greek story, a drachma in the bush sounds as filthy as a _______ in the bush.

22 posted on 12/06/2011 10:46:06 AM PST by USS Alaska (Nuke The Terrorist Savages)
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To: USS Alaska

I was thinking the same thing...Clinton has probably had a drachma in the bush.


23 posted on 12/06/2011 10:48:06 AM PST by sanjuanbob (Festina Lente)
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To: kcvl
In one sentence, Der Spiegel explains the folly of Keynes and Obamanomics:

"By withdrawing money, they are forcing banks to scale back their lending -- and are inadvertently making the recession even worse"

In other words, you need to save and invest money to grow the economy, not spend it!

24 posted on 12/06/2011 10:49:22 AM PST by MrShoop
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To: kcvl

Imagine that, unemployeed Greeks are having to drain their savings to feed their families. Somehow, they’re now the bad guys.


25 posted on 12/06/2011 10:50:00 AM PST by bgill (The Obama administration is staging a coup. Wake up, America, before it's too late.)
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To: JDW11235

Well, thank you. Just realized that I mangled one of those sentences though.


26 posted on 12/06/2011 10:56:17 AM PST by JustaDumbBlonde (Don't wish doom on your enemies. Plan it.)
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To: All
Anxious Greeks Emptying Their Bank Accounts

Heck, I do that every week!
27 posted on 12/06/2011 11:06:09 AM PST by mmichaels1970
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To: freedumb2003

LOL.

“Miranda,Miranda dontchya know me?”


28 posted on 12/06/2011 11:07:08 AM PST by WOBBLY BOB (Congress: Looting the future to bribe the present.)
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To: steveab

not if the leftards in charge here have any say:

US to backdoor Euro bailout through new IMF credit facility
http://www.examiner.com/finance-examiner-in-national/us-to-backdoor-euro-bailout-through-new-imf-credit-facility
US ($) to Play ‘Very Major Role’ In Helping Europe: Geithner
http://www.cnbc.com/id/44902075
so in addition to doling out monopoly money to save failed US gubmint union pensions,we get to dole it out to failed Youra-peein gubmint union pensions.


29 posted on 12/06/2011 11:10:46 AM PST by WOBBLY BOB (Congress: Looting the future to bribe the present.)
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To: kcvl

Or what is a vacation resort area with a little agriculture really worth?


30 posted on 12/06/2011 11:17:50 AM PST by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
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To: WOBBLY BOB

I found this on Zero Hedge. An excellent summary of the insane European Debt crisis in a short presentation with charts.

Economic Minute Presentation on the European Financial Crisis - Low GDP Growth, Staggering Debt, Geithner On The Prowl In Europe!

http://confoundedinterest.wordpress.com


31 posted on 12/06/2011 11:25:43 AM PST by whitedog57
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To: Soothesayer9
There is a lesson to be learned in all this. That is, get your money out while the gettin is good. Obammy and Co will certainly try to take our assets and 401ks when SS runs out and grandma doesnt have her monthly check.

FinancialSense.com had a powerful interview on 12/01/11 with Ann Barnhardt, who recently returned all her clients money and closed her commodity brokerage firm, Barnhardt Capital Management, after the MF Global collapse. In no uncertain terms that's what she said everyone had better start doing in America. She says the whole system of markets, law, government, judicial system, etc. has become totally lawless and corrupt. It's an unnerving interview, and I don't get shook easily. It has me rethinking what I need to do and how quickly I need to do it.

Ann Barnhardt Interview

32 posted on 12/06/2011 11:32:46 AM PST by OB1kNOb (The prudent see danger and take refuge, but the simple keep going and pay the penalty. - Prov 22:3)
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To: kcvl

BTW, our Fed/Treasury are pouring money into bonds in Europe. Europe won’t win any currency war against us. The dollar will fall. Also, much of the “news” about China is globalist propaganda. The countries with manufacturing and access to resources will do well. Countries that are net exporters of resources like oil will do even better.

We’re really worse off than Europe, and many of us don’t know it, yet.


33 posted on 12/06/2011 11:39:41 AM PST by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
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To: familyop

Time to open a couple of Bank of America’s there.

Are we not exporting refined Gasoline???


34 posted on 12/06/2011 11:54:25 AM PST by Baseballguy (If we knew what we know now in Oct would we do anything different?)
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To: Baseballguy

Those are both good points.


35 posted on 12/06/2011 1:07:04 PM PST by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
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To: JDW11235

A run on the banks so big that the government can’t stop it. THIS has been the nightmare scenario ever since the 1930s. It was one of those things that nagged at me... what if so many people did it the government ran out of money. That was a joke at the time. It ain’t a joke now.

At any rate, there’s an easy way to solve this. Nationalize the banks and issue an edict prohibiting the dissolution of the account.


36 posted on 12/06/2011 2:34:55 PM PST by ichabod1 (Vote for Herman Cain 2012! Stop Letting Them Drive Our Candidates Away!)
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To: ichabod1

“Nationalize the banks and issue an edict prohibiting the dissolution of the account.”

That IS a nightmare scenario.


37 posted on 12/06/2011 2:40:06 PM PST by JDW11235 (I think I got it now!)
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To: familyop

Right. Because any politician that mentions it is called “extremist.” We have lots and lots of problems but the biggest one is the thinking that we won’t hit the wall. The leftists are in blissful denial that there are any boundaries - because they don’t believe us. They don’t care what we say, they simply don’t believe us.


38 posted on 12/06/2011 3:06:33 PM PST by ichabod1 (Vote for Herman Cain 2012! Stop Letting Them Drive Our Candidates Away!)
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To: WOBBLY BOB

There has to be away to stop this bailout.


39 posted on 12/06/2011 3:15:06 PM PST by steveab (When was the last time someone tried to sell you a CO2 induced climate control system for your home?)
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To: USS Alaska

>>Even for a greek story, a drachma in the bush sounds as filthy as a _______ in the bush.<<

Do it the Greek way, come from behind...

0:-)


40 posted on 12/06/2011 4:34:58 PM PST by freedumb2003 (Spoiler Alert! The secret to Terra Nova: THEY ARE ALL DEAD!!!)
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To: Baseballguy
"Are we not exporting refined Gasoline???"

We're a net importer of that, too, BTW.


41 posted on 12/06/2011 7:39:13 PM PST by familyop ("Don't worry, they'll row for a month before they figure out I'm fakin' it." --Deacon, "Waterworld")
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To: JDW11235

Not sure you grasp the severity. Yes, it’s their money. Problem is, a run on banks means “their” money isn’t there to withdraw. Only a tiny fraction of deposits is kept on hand as cash.

It’s kinda like thinking “I can go to the store to buy groceries any time” - except when EVERYONE does at the same time, and most find only empty shelves.


42 posted on 12/06/2011 7:43:29 PM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: cuban leaf

Yeah, I’ve been eyeing that “ten days” prediction for, hey, it’s almost ten days!


43 posted on 12/06/2011 7:45:04 PM PST by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: ctdonath2

I not only understand the problem, I also understand the solution.

“It’s kinda like thinking “I can go to the store to buy groceries any time” - except when EVERYONE does at the same time, and most find only empty shelves.”

The smart thing to do is make sure you have food before everyone else goes running for it. Exactly what the intelligent Greeks are doing in this situation, getting out before they become victims. The problem with financial musical chairs, is that just like real musical chairs, when the music stops someone’s out of luck. If people don’t move to get their money out, and now, they’ll all be left without the figurative seat, but the seats are diminishing whether they decide to take one or not.


44 posted on 12/07/2011 11:54:23 AM PST by JDW11235 (I think I got it now!)
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