Bail-Ins Of “Big Deposits” In Greece Would Be “Extraordinarily Counter-Productive”
By: GoldCore
GoldSeek.com
Friday, 24 July 2015
– Bail-ins are a risk facing Greek savers and businesses
– ‘The Economist’ warns bail-ins in Greece would be “extraordinarily counter-productive”
– Capital controls choking small and medium size businesses
– Greek liquidity crisis now a solvency crisis
– ELA now provides more liquidity to the Greek banking sector than deposits do
– Greece households and especially businesses worry about a “bail-in” of big deposits – above €100,000
– Financial interests of banks placed over those of small and medium businesses and taxpayers
“Bailing-in” of larger deposits would have a very detrimental effect on Greece, The Economist has warned. The magazine points out that such an action would “destroy the working capital” of small and medium size businesses, which it describes as the “backbone” of Greece’s economy.
The risk that bail-ins pose to companies, trade, commerce, employment and entire economies is something at which we have looked frequently in recent months. Indeed, we think we are largely alone in focussing in detail on the risk that bail-ins pose not just to individual savers but also to millions of small and medium size enterprises throughout the world.
The Rest…HERE
