The war drums are beating for a complete collapse of the Greek banking sector.
Yesterday it was announced that the government will be granted access to people’s bank account in 24 hours.
Today Provopoulos, the governor of the Greek central bank has said depositors money is safe until it is not.
This quote sums up the incoherence of the Greek economy perfectly
Provopoulos said further that “banks have already overcome the basic difficulties” and added that “the problem the bank now face are the increased number of debts that remain not served.” – See more at: http://www.keeptalkinggreece.com/2013/12/11/bogs-provopoulos-no-bank-deposits-haircut-in-the-foreseeable-future/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+KeepTalkingGreece+%28Keep+Talking+Greece%29#sthash.lc1mNrkO.dpuf
That statement is worthy of closer examination. Bad debts in Greece are completely out of control.
A layman may think that is the way banks make money ie lending to me and you
But the central bank governor of Greece believes lending is a side issue because he says the “basic difficulties have been overcome” WTF?!
Loans are going bad at an increasing rate but the basic issues bank face have been overcome! This is nonsense.
This is not a recommendation or advice. If I had money in a Greek bank, I would be getting it out.