From the Greek Prime Minister comes this gem. “The bank deposits are fully secure”. Well, they are secure from the depositors and behind locked doors, that part is true. The reality is that, like all western banks, they only have 3% of your deposits, the rest has been spent on speculative lending to increase earnings, then ‘Securitised’ ad nauseum. One does wonder who Greece found to pay higher interest than they were paying (Bigger mug theory in the workplace).
The bank has had to have the fuel tanks topped up by the neighbours already. If the Greek banks had the money, why borrow (At interest or courses!) from the neighbours?
Then comes the “Wages and pensions, as well as bank deposits, were guaranteed.” – Guaranteed to be lost? Guaranteed by whom? (The bankrupt ‘Guarantees’ payment – One day, never) With what backing is this guarantee issued?
You HAVE to be joking. P.T. Barnum knew there was a sucker born every minute but this assumes they all went to Greece to retire.
The illustrious BBC adds nonsense to the fire of absurdity with the king of the blindingly obvious making the most fatuous statements I have read in years.
Like I said – Unbelievable!!
The Greek prime minister that wages and pensions, as well as bank deposits, were guaranteed.
He also said he had sent a new request for an extension to the bailout. “I am awaiting their immediate response to a fundamental request of democracy,” added.
Analysis: Robert Peston, BBC economics editor
The temporary closure of banks in Greece, and the introduction of capital controls, is very bad news for Greece. Greek people will have less money to spend and business less to invest; so an already weak economy will probably return to deep recession.
As for the impact on the rest of the eurozone, corporate treasurers and wealthy individuals will wake up on Monday wondering if their money is safe in the banks of other weaker eurozone economies.