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

http://www.elliottwavetechnician.blogspot.com/
Copyright (C) 2011 all rights reserved