Mish's Global Economic Trend Analysis |
Huge Queues Form as Greek Banks Open; More Money at One Time, Same in a Week Posted: 19 Jul 2015 05:57 PM PDT Greeks want their money. Who can blame them? But why did they foolishly have money in the bank in the first place? Regardless, the banks are open. And huge lines are forming. In a knick-knack paddywack maneuver to boost morale, the Troika graciously allows depositors to withdraw €420 euros at a time, up from the previous €60. Alas, the weekly withdrawal rate remains the same €420 euros. Greek banks will open for the first time in three weeks on Monday in an attempt to boost savers' confidence in the country's crippled lenders.Morale Boost with No Money? Supposedly, there was going to be a morale boost if banks opened with no money. Anyone really believe that? I don't. Huge queues are not morale boosting either. FT: Pensioners queue outside an Athens bank during the bank holiday, when they were the only customers allowed inside The key morale boosting move is making Greeks stand in line only once a week rather than seven times a week to get the same measly amount of money. Nonetheless, this is a genuine productivity boost. Shhh. Don't tell the economists, or they will figure out a way to up GDP estimates. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
Merkel's Carrot; Agreement to Fail? Grexit Still Likely? Posted: 19 Jul 2015 01:19 PM PDT Can the Greek Debt Deal Last? Financial Times writer Wolfgang Münchau believes the deal ends in failure. So do I. Münchau provides some well-thought-out reasons in Grexit Remains the Likely Outcome of this Sorry Process. Alexis Tsipras should never have hired Yanis Varoufakis as his finance minister. Or he should have listened to him, and kept him on. But instead the Greek prime minister chose the worst of all options. He followed Mr Varoufakis' advice of rejecting the offer of the creditors — until last week.Primary Account Surplus Revisited I have written about the need for a primary account surplus many times. Here are the two most recent ones.
Germany "May" consider Debt Relief The BBC reports that at some unknown point in the future Germany 'May Consider' Debt Relief German Chancellor Angela Merkel says she is prepared to consider further debt concessions to Greece once its latest economic reforms are worked out.Merkel's Carrot Image courtesy of the Green Carrot Company. Not Now, Then For starters, reduced interest rates and extended maturity carrots are indeed a form of debt write-off. Merkel knows that, she just cannot say so because debt haircuts and write-offs are illegal under ECB rules. When might these haircut carrots come? The answer is after she is out of office, on someone else's watch. She cannot say that either. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com |
You are subscribed to email updates from Mish's Global Economic Trend Analysis To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States |