Greek Banks Planning To Raid Deposits To Avert Collapse

[Wilikon]

Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears the country is heading for financial collapse, bankers and businesspeople with knowledge of the measures said on Friday.

The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.

A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000.

It would be implemented as part of a recapitalisation of Greek banks that would be agreed with the country’s creditors — the European Commission, International Monetary Fund and European Central Bank.


http://www.ft.com/cms/s/0/9963b74c-219c-11e5-aa5a-398b2169cf79.html

[Frijj]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

[Wilikon]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

Because it is cheaper to steal what's already 'printed' in your bank account. You need money to pay for making more money. A couple of key strokes and you get punished for being a good citizen.

[bryant.coleman]

This was originally posted in the Economics sub-section of this forum, and it has been confirmed that this is a propaganda news piece from the troika. It was just an attempt by the troika bankers to sway the voters ahead of the Greek economy referendum, which is scheduled for tomorrow. It might get 2% or 3% of the swing votes to the YES (Nαι) camp, but still NO (όχι) is going to win tomorrow.

[Harry Hood]

This news could help Bitcoin the most out of all the news on Greece.

If there's a case study where a Government (i.e., Greece) actually confiscates the deposits of citizens in a crisis like this you will absolutely see a flight to Bitcoin in the future, so people can protect their assets from a a raid of savings accounts. This news, let alone whether it happens or not, may be enough to reinforce the importance of Bitcoin as an independent alternative form fiat currencies.

The fact that Greece is considering this is scary.

Greece needs to reset or drastically reduce services if their people don't want to vote to legally pay more to cover the deficit. And once they're on their feet the Government needs to spend an honest effort collecting taxes and their people need need to feel the patriotic duty to pay them. The low tax collection rates and high tax evasion led to this problem.

[Wilikon]

This was originally posted in the Economics sub-section of this forum, and it has been confirmed that this is a propaganda news piece from the troika. It was just an attempt by the troika bankers to sway the voters ahead of the Greek economy referendum, which is scheduled for tomorrow. It might get 2% or 3% of the swing votes to the YES (Nαι) camp, but still NO (όχι) is going to win tomorrow.

I am sorry if this is a fake news. The past actions (around april 2015l) of the greek govt. would have made me move all my money a long time ago already:

Greece demands cash from local government as default fears grow - as it happened
http://www.theguardian.com/business/2015/apr/20/athens-issues-decree-demanding-cash-reserves-from-local-government


There will be blood. No matter the outcome. The new power over-promised unrealistic dreams.

[melody82]

This was originally posted in the Economics sub-section of this forum, and it has been confirmed that this is a propaganda news piece from the troika. It was just an attempt by the troika bankers to sway the voters ahead of the Greek economy referendum, which is scheduled for tomorrow. It might get 2% or 3% of the swing votes to the YES (Nαι) camp, but still NO (όχι) is going to win tomorrow.

I am sorry if this is a fake news. The past actions (around april 2015l) of the greek govt. would have made me move all my money a long time ago already:

Greece demands cash from local government as default fears grow - as it happened
http://www.theguardian.com/business/2015/apr/20/athens-issues-decree-demanding-cash-reserves-from-local-government


There will be blood. No matter the outcome. The new power over-promised unrealistic dreams.

Do you have proof of some sort that this is a fake news piece?  I hope that this doesn't happen.  It is like Jon Stewart said, we have socialism for the rich and capitalism for someone else.  All of this theft of money in various forms from the average person really upsets me. 

And yes, I agree that there will be blood.  I sold off all my stocks recently, I think this could be the catalyst to pop the current asset bubble.  If I am wrong, no big deal, I can buy back in if I want.  Its insurance I guess.

[saddampbuh]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

they cant because they're in the euro and dont control their own currency

[Spendulus]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

they cant because they're in the euro and dont control their own currency

That's correct - that's why Greece needs to exit the Euro.  The more currency they print, the less it's worth, and the less it is worth, the more tourists flock to the Greek Islands which become very cheap compared to countries on the Euro.

[LiteCoinGuy]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

they cant because they're in the euro and dont control their own currency

exactly. and that is the whole problem. hopefully greece will leave the eurozone!

[Wilikon]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

they cant because they're in the euro and dont control their own currency

exactly. and that is the whole problem. hopefully greece will leave the eurozone!

As soon as they leave the euro zone Greece becomes cheap meat for Putin or China.

[Spendulus]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

they cant because they're in the euro and dont control their own currency

exactly. and that is the whole problem. hopefully greece will leave the eurozone!

As soon as they leave the euro zone Greece becomes cheap meat for Putin or China.

Well, what likely would happen is their new currency won't be worth much, so a few Euros buy a lot of it, and hence foreign investment floods in and the Greek islands become a preferred and CHEAP tourist spot.  There would be a lot more jobs, and a lot fewer imports at higher prices.

There's NO reason for the bankers/government to steal from the bank accounts if they are going to exit the Euro - they'd pick an easier way to steal.  Simply set the exchange rate, 1 Greek Dollar for one Euro.  Change the bank accounts.  Central bank now has all Euros, has printed currency and given it to depositors.  Next week the Greek Dollar is going at 10 for 1 Euro.

It's no different - they stay on the Euro, they get money stolen.  They get off the Euro, they get money stolen.

[bryant.coleman]

As soon as they leave the euro zone Greece becomes cheap meat for Putin or China.

Greece has unofficially become a no-go zone for the investors from Russia and China. The red tape and bureaucracy is driving away all the potential investors. For example, if you want to buy an island in Greece, then you have to obtain at least 30 different permits from various Greek government departments, bribing multiple officials in each of the steps.

[Borisz]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

Because it is cheaper to steal what's already 'printed' in your bank account. You need money to pay for making more money. A couple of key strokes and you get punished for being a good citizen.

If you are in the EU you can't just issue more € on your free will, there is a regulatory body over-watching this in the entire EU. Otherwise every country would just print € and pay with that. However, now that they voted No to the referendum, if they go out of the Euro zone they will be more or less free to issue as much new Drachmas as they want. Inflating it beyond measure, of course.

[Possum577]

Hey Wilikon, unless we can't access the article via the link unless we have a paid subscription to Financial Times.

I wonder if the 8,000 euro cap is by account or by citizen? If people spread their money out over multiple accounts - say 50,000 euro in 5 different accounts, do they get the benefit of the 8,000 "free" from each account, resulting in paying 30% of 210,000 rather than 30% of 242,000.

To get out of this mess Greece citizens need to be expected to pay for what they haven't paid for yet. And the Gov needs to stop the f*cking spending!

[Wilikon]

Hey Wilikon, unless we can't access the article via the link unless we have a paid subscription to Financial Times.

I wonder if the 8,000 euro cap is by account or by citizen? If people spread their money out over multiple accounts - say 50,000 euro in 5 different accounts, do they get the benefit of the 8,000 "free" from each account, resulting in paying 30% of 210,000 rather than 30% of 242,000.

To get out of this mess Greece citizens need to be expected to pay for what they haven't paid for yet. And the Gov needs to stop the f*cking spending!

I don't see how this could work unless you split your money into accounts opened by different people you trust, in different banks. Once your euros are locked in a bank account it is too late. That is why greeks are hiding their cash everywhere in their home. You will have a hard time moving a big amount of euros between your own accounts, or out of your greek accounts to anywhere in the world right now.
60 euros in cash, per day, is what you can get from your own account. Can someone confirm?

I really have a bad feeling about this. He used the power of the people, the referendum, as weak card in this high level poker game.

What if there was a referendum in each european country asking the people if they want to bail Greece out, again... What would be the result?

[lihuajkl]

So let me get this right? Are they proposing to actually steal from peoples savings to pay off their debts? Why don't they just print more fake money like the usually do?

Actually there is no much money left in the banking systems. The banks will run out of cash in no more few days. They have to do the things Cyprus was doing in 2013.

[bryant.coleman]

If you are in the EU you can't just issue more € on your free will, there is a regulatory body over-watching this in the entire EU. Otherwise every country would just print € and pay with that.

That is correct. Not even Germany has the power to print as many Euro banknotes as they want. The require permission from the ECB.

If there is no such mechanism in place, then what happened in Zimbabwe and Yugoslavia will happen in the EU as well. In the 1990s, the Yugoslavian Dinar underwent a period of massive hyper-inflation, as individual central banks in Vojvodina, Kosovo, Belgrade and Montenegro started printing as many notes as they wanted. And the result is this: