Greece bank run

Originally posted by Mufcutcakeyumyum
I fully expect stories to come out later trying to dampen the flames as it were about all this, but as is being mentioned in a similar thread here on ATS www.abovetopsecret.com...
it seems the ECB are "divorcing" themselves from some Greek banks due to poor or inadequate recapitalisation. Who was doing the recapitalisation?

recapitalisation
"When a company changes its capital structure (the proportion of equity to debt), This may occur, for instance, as part of a debt restructuring, when a creditor exchanges an outstanding loan for a stake in the company (debt for equity swap). While the aim of a recapitalisation is normally to improve a company's debt/equity ratio, it can also be used to fend off a hostile takeover - in which case the company makes itself unattractive by increasing the level of debt in its capital and using the funds to pay special dividends to shareholders."

www.businessspectator.com.au...

In addition, it seems there are or were queues of people waiting to withdraw cash, which was strongly denied yesterday:

themoneyupdate.com...

Be interesting to see what does develop today on this.

Actually, the ECB are removing four large Greek banks from being able to borrow $$$ from them, because they have "negative equity". Meaning, they have to outlay more than what they can cover.

Originally posted by nightbringr

Originally posted by detachedindividual
I would absolutely holiday in Greece. It's a beautiful country with so much history to see. The people are so nice too, welcoming of everyone.
Tourism can still flourish in Greece, as long as they can remain competitive and as long as there are still enough travelers able to afford to leave their own country for a few weeks.

Again your not getting the big picture. Yes, people may still WANT to vacation there. They simply wont be able to afford to.

So it goes like this. Greece pulls out of the EU and prints the drachma. No longer taking bailouts, they are forced to go it alone. In the very first month they are forced to print massive amounts of money to pay for infrastructure, pay for civil servants and more. After all, they are still spending so far beyond their means and no have no other way to pay for it. Massive inflation is the only result of this scenerio.

So tourists can no longer afford to vacation there. A simple loaf of bread now costs over $50 american. Worse, since Greece is not self sufficient, they must buy needed commodities on the world market. Their now inflated money is worth little, and they have no way to purchase what they need affordably.

I feel bad for the Greek citizens. Their hard times have only begun if they ditch austerity. Fiscal responsibility is a thing of the past.

You have it backwards. If the Drachma loses it's value all other currencies will gain value in Greece, making it a cheap place to vacation.

Originally posted by sligtlyskeptical

Originally posted by nightbringr

Originally posted by detachedindividual
I would absolutely holiday in Greece. It's a beautiful country with so much history to see. The people are so nice too, welcoming of everyone.
Tourism can still flourish in Greece, as long as they can remain competitive and as long as there are still enough travelers able to afford to leave their own country for a few weeks.

Again your not getting the big picture. Yes, people may still WANT to vacation there. They simply wont be able to afford to.

So it goes like this. Greece pulls out of the EU and prints the drachma. No longer taking bailouts, they are forced to go it alone. In the very first month they are forced to print massive amounts of money to pay for infrastructure, pay for civil servants and more. After all, they are still spending so far beyond their means and no have no other way to pay for it. Massive inflation is the only result of this scenerio.

So tourists can no longer afford to vacation there. A simple loaf of bread now costs over $50 american. Worse, since Greece is not self sufficient, they must buy needed commodities on the world market. Their now inflated money is worth little, and they have no way to purchase what they need affordably.

I feel bad for the Greek citizens. Their hard times have only begun if they ditch austerity. Fiscal responsibility is a thing of the past.

You have it backwards. If the Drachma loses it's value all other currencies will gain value in Greece, making it a cheap place to vacation.

Agreed, rather ironic considering his comments about others not understanding finances.

Seems we found the one confused. The banks are great, they had no role in any of this, lmao.

Originally posted by Mufcutcakeyumyum
Recent share price of De La Rue:

www.lse.co.uk...

Who are De La Rue? :

en.wikipedia.org...

Why the sudden surge in their share price?
Have they had orders placed?
Or am I just barking up the wrong tree?

edit on 16-5-2012 by Mufcutcakeyumyum because: (no reason given)

It seems there may be more in this than I first thought:

www.businessworld.ie...

Add the recent developments in Spain and discussions ongoing at the G8 and the wheel is definately gaining momentum. Anyone heard more?

reply to post by macaronicaesar


If i might intercede with a name from the past,,
one of the unwashed mass's here,,,
John Kenneth Galbraith.
Iknew he was right.
When did the pycho science rule the world of High Finance,,,,i give you this too ponder Gentlemen,,,
when the Stock Market was convinced that that ,someone ,who shall remain,, annonymous,,
said,, "we have an algorithm"
and they listened.
hook,
whats an Algorighm?
line,
Well here's what it can do ,,if u,,,
sinker$$$$$$$$$$$$,,

opps,,,guess the Algorythm,,went ,,,"Destroy Start Over"
commence proccessing,,,
beep.

Me.