Tuesday, November 08, 2011

'Run For Your Lives': One More on the Eurozone

EuroOK, this is a dead horse. Or almost. But I found one section of the Der Spiegel article fairly interesting. 'Run For Your Lives': Euro Zone Considers Solution of Last Resort - SPIEGEL ONLINE - News - International

It seems everyone is abandoning the Euro, at least everyone in the southern part of the continent.
"Run for your lives" is the new motto in Europe, and not just among banks and insurance companies, which are selling off southern European bonds as quickly as they can, but also among ordinary holders of savings accounts. Banks and regulatory agencies are noticing that anxious citizens throughout Europe are trying to bring their money to safety. The flight of capital from Italy, Spain and Greece is in full swing.

Since the beginning of the crisis, ordinary Greeks have withdrawn about €50 billion ($69 billion) from their accounts, or a fifth of total deposits. In May, when the first rumors about a possible withdrawal from the euro zone were making the rounds, the Greeks withdrew €1.5 billion from their accounts within 48 hours. And it is no longer just the rich who are moving their money to a safe place. A Greek nun recently closed her convent's bank account, telling the bank employee that she needed the €700,000 in the account for renovations. But when pressed by the bank employee, she finally admitted that she was worried about her order's assets.
The whole thing is really worthwhile.

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