The Greek people have lost confidence in their own banks. Last year they withdrew 30 billion Euros.
Greek savers withdrew 30 billion Euro from their banks last year and continue to do so at a monthly rate of Euro 1.5 billion to Euro 2 billion every month this year.
The EU withdrawing its financial support would almost certainly trigger a bigger run on Greek banks. The Swiss National Bank (SNB) said last week that it was concerned about the indirect exposure of Switzerland’s two big banks – UBS and Credit Suisse – to the ripple effects of a Greek default.
While Switzerland has modest direct exposure to Greece, the prospect of a complete economic collapse of the troubled country is enough to worry some observers.
Greece would then struggle to remain solvent as it needs to find €12 billion by mid-July to clear short-term debts.
Greek should not have joined the EU in the first place.
It is amazing that the Greeks now expect foreigners to rescue their banks, when they them selves have lost all confidence in them.
The best way to make the Greek understand this issue, is to let their banks go bankrupt. When the Greeks are out of the Euro Zone, they will face a 50 per cent devaluation of their old currency Drakmer, and 15-20 per cent annual inflation.
Lazy hands make for poverty, but diligent hands bring wealth.
When their own economy has collapsed, first than they will realize that they have to work. Social benefits that is not a product of their own work, is alway a fruit of borrowing. This Greek tragedy will end like a Greek tragedy. With sweat, blood and tears.
Only out of chaos, comes the demand form for a One World Government and a stable One World currency.
Written by Ivar.