Tuesday, July 5, 2011

Capital flight from banks in Greece and other PIIGS banks

Money is flying out of Greek banks. Deposits in all the PIIGS countries are contracting. A credit and banking crisis is evolving. Greece lack the funds to save its banking system. This graph illustrate the point:

Source: Bridgewater

Greece is due to pay another approx. 70 billion euros at the end of July 2011. And then there is August ......

Euro-group chairman Jean-Claude Juncker warned Greeks that help from the EU and IMF requires that Greece privatise on a scale similar to the sell off of East German firms in the 1990s.

Read our earlier analysis of the European credit and banking crises posted on this blog.

Geir Solem

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