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The Greeks


Dr Gloom
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Just got back from a trip with work to Athens doing a piece ahead of the election on Sunday. Got to say that the Greeks are some of the nicest, most hospitable people I've met. I interviewed about 8 people and they were all so friendly - offering endless coffee, food, offering to buy lunch, recommending places to visit. It really doesn't seem right that they're on the brink.

 

I've only ever been to the islands before this trip. I'm defo coming back to explore the mainland one day.

 

The only place that compares in terms of how friendly the people are that I've been to is Thailand or Laos.

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http://www.guardian.co.uk/world/greek-election-blog-2012/2012/jun/13/greeces-super-rich-low-profiles

 

But since the outbreak of Greece's runaway debt crisis, its moneyed class has been notable more by its absence than presence. Oligarchs, who made vast fortunes cornering the oil, gas, construction and banking industries, as well as the media, have been eerily silent – often going out of their way to be as low a profile as possible.

 

Greek shipowners, who have gained from their profits being tax-free and who control at least 15% of the world's merchant freight, have also remained low-key. With their wealth offshore and highly secretive, the estimated 900 families who run the sector have the largest fleet in the world. As Athens' biggest foreign currency earner after tourism, the industry remitted more than $175bn (£112bn) to the country in untaxed earnings over the past decade. Greece's debt currently stands at €280bn.

 

As ordinary Greeks have been thrown into ever greater poverty by wage and pension cuts and a seemingly endless array of new and higher taxes, their wealthy compatriots have been busy either whisking their money out of Greece or snapping up prime real estate abroad.

An estimated €8bn flowed out of the Greek banking system in May as speculation over the country's possible exit from the eurozone mounted. Another €4bn was reported to have been withdrawn in the last two weeks – on top of an estimated €20bn since the start of the crisis in late 2009. Stories of rich Greeks sending their wives and best friends on "shopping missions" to remove secret hoards kept in banks in Switzerland and Cyprus are legion

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An estimated €8bn flowed out of the Greek banking system in May as speculation over the country's possible exit from the eurozone mounted. Another €4bn was reported to have been withdrawn in the last two weeks – on top of an estimated €20bn since the start of the crisis in late 2009. Stories of rich Greeks sending their wives and best friends on "shopping missions" to remove secret hoards kept in banks in Switzerland and Cyprus are legion

 

Well, anyone would if they could. You have a load of money which you can shift abroad in massive quantities without changing its value. Never mind the ordinary Greeks, its everyone in the EZ that is propping up Kostas Shipalotopos and his overpriced Greek Euros.

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Happy to turn this into the 'Grexit' thread.

 

It seems to me that the main reason certain powers want Greece to remain in the euro is because they hold greek debt (in Euros). After all the haircuts etc, a Grexit would mean another massive devaluation of Greek debt. Its just a pure need to avert further losses to debt holders i.e. institutions etc.

 

Any further impact on Spain and Italy is just down to confidence, if investors hold their nerve then it could be contained. I do wonder who will then buy Spanish and Italian debt. I dont think any US funds even bother over here anymore.

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A Grexit was plausible at one stage, and clearly the Merkozy ultimatum showed this- but now this would likely trigger multiple EZ exits and massive devaluation of the replacment currencies- and the EU simply couldn't handle that.

 

A fiscal union is looking increasingly like the only option. Thank Christ we're not part of it.

 

And there is no room for butt plugs when there are 17 nations all trying to put their arms up there.

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