Greek Bank Runs Herald Exit From Eurozone
This final leg of the end of the euro as we know it will impact investor portfolios everywhere and is worth watching as it progresses.
L. Todd Wood
WesternJournalism.com
January 16, 2015
A fiat currency is only worth what people think it is worth. That goes for a country’s banking system as well. In Greece, where the Eurozone crisis started almost five years ago, it seems the Greek people do not have much faith in their banking institutions.
The bank runs have started. Who knows where this current round of Greek tragedy will end? I can say it will not end well.
Round and round she goes; where it stops, nobody knows.
With new elections in Greece portending a worsening phase in the Greek debt crisis, Greeks can be forgiven for wanting their money in cash versus being held by insolvent institutions, only a phone call away from being used to support the government’s spending. The Syriza party, a leftist, anti-austerity group bent on opening the free-money spickets again in Greece, could possibly win the snap election called when the currency government failed in getting its candidate elected as president. Hence the bank runs.
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