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    Forums ›› Main ›› Economics ›› Why are there no lines outside of Greek and Spanish Banks?  


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Swan Noir
 

Registered: Jun 2009
Posts: 1694

 

06-09-12 07:45 PM

I don't get it. There are millions -- tens of millions -- of people who wake up each morning in these two countries that are acting irrational in the extreme. Has our species gotten to the point where our survival instinct is degraded?

If you are in Athens, of average intelligence and read a newspaper even once a week you know that there is a chance you will wake up some morning with your Euro deposit posted in Drachma worth 40% to 60% less than when you went to bed.

Hello!! Is anybody home and worrying about the nest egg?

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morganist
Moderator

Registered: Sep 2008
Posts: 3404

 

06-09-12 07:54 PM


Quote from Swan Noir:

I don't get it. There are millions -- tens of millions -- of people who wake up each morning in these two countries that are acting irrational in the extreme. Has our species gotten to the point where our survival instinct is degraded?

If you are in Athens, of average intelligence and read a newspaper even once a week you know that there is a chance you will wake up some morning with your Euro deposit posted in Drachma worth 40% to 60% less than when you went to bed.

Hello!! Is anybody home and worrying about the nest egg?



It is not just them if the PIIGS go down the contagion will be terrible.

People will lose their pensions everywhere and money in banks will not be worth anything.

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DT-waw
 

Registered: Apr 2001
Posts: 2184

 

06-09-12 08:01 PM


Quote from Swan Noir:

that there is a chance you will wake up some morning with your Euro deposit posted in Drachma worth 40% to 60% less than when you went to bed.




no, you just dont have a full picture about the situation. the wealthiest greeks have put their savings in safe heavens denominated in CHF, SGD or GBP.


It is only Swiss National Bank who will wake up some morning with its EUR deposits worth less 10-20% vs other majors.
The biggest losers are Germans, who sent 100s of billions of euros to Greece and Spain over the last 2 decades.

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just21
 

Registered: Feb 2002
Posts: 3300

 

06-09-12 08:05 PM

The run is electronic now. The joke in Spain is what is the name of the last spaniard to have their money in a Spanish bank.

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morganist
Moderator

Registered: Sep 2008
Posts: 3404

 

06-09-12 08:08 PM


Quote from DT-waw:

no, you just dont have a full picture about the situation. the wealthiest greeks have put their savings in safe heavens denominated in CHF, SGD or GBP.


It is only Swiss National Bank who will wake up some morning with its EUR deposits worth less 10-20% vs other majors.
The biggest losers are Germans, who sent 100s of billions of euros to Greece and Spain over the last 2 decades.



Yeah and now they could lose their pensions too.

Why did the bond traders buy PIIGS debt and the banks that owned PIIGS debt and why did people let them?

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oldtime
 

Registered: Jun 2011
Posts: 7307

 

06-09-12 08:13 PM


Quote from Swan Noir:

I don't get it. There are millions -- tens of millions -- of people who wake up each morning in these two countries that are acting irrational in the extreme. Has our species gotten to the point where our survival instinct is degraded?

If you are in Athens, of average intelligence and read a newspaper even once a week you know that there is a chance you will wake up some morning with your Euro deposit posted in Drachma worth 40% to 60% less than when you went to bed.

Hello!! Is anybody home and worrying about the nest egg?

who is zooming whom? You're worried about a so called nest egg which is nothing more than a quarterly statement printed out (well now it's not even printed out, it's just a statement you call up on the internet) and they are worried about food, which is something that is real, that they can hold and grow.

Any peasant can grow food, let's see you use your magical Central Bank formulas and grow a nest egg.

What would you rather have, sunshine and a basket of food, a bottle of wine and a beautiful woman (and hopefully someday a family) or your computer printed nest egg?

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