The ‘Secret’ Greek Banking Crisis Has Killed the Athens Stock Exchange
There is an inner Greek banking crisis which however the Greek political and economic leaders refuse to let in. They are trying to avoid creating panic and hope (against hope) that it can be conquer. They are misguidedly believing that if the European crisis subsides, so their problems will too. Nothing could be more mistaken.
After my revelations became known, more and more skeptics in the financial community are seeing the facts and are beginning to speak openly about the Greek banking problems. They know that these require immediate treatment before the damage caused by a sharp escalation will become irreversible. What the devious politicians try to conceal is the emotional way the stock market (the banking sector) has collapsed with banking shares experiencing an unheard of crash. It is a fact that during the last 12 months the loss of Greek edges ranged from 14% to 70%; with a total showing eleven of them are more than 40%.
The Greek banking industry has been in ‘meltdown’ since November 2009 onwards and the Greek government has completely failed to stop this course of action while refusing to understand what the Greek banking crisis is, and the real reasons behind it. This is nothing less than a secret banking crisis in fact. Do you need further proof? All you have to do is look at the dashboard of the Athens stock Exchange to understand that international investors have sold out the Greek banking shares.
The most important fact of all, however, is that Europe has not understood it faces as a whole, a harsh banking crisis, which increases systemic risk and the Greek banking sector which, already if they were completely healthy – which it is not – faces a serious systemic infection risk. When the international banking crisis broke in 2007, the then Greek government took care to stress that Greece did not confront any danger as the Greek edges were not exposed to toxic investment products. At the same time the opposition, had then hastened to confirm this logic with the consequence either of the two major parties not to talk about the need to protect the Greek edges from possible contamination, which was more than certain. What a typical error of denial!
What is overlooked is that investment products are not ‘born’ but become toxic when circumstances change for the worse and that the routes of international capital quickly move a problem from one continent to another. The inability of the Greece, and her mounting problems (seen in their true light) and the connection with European and international economic and financial ecosystem has already cost Greece, the EU and the world, the worst debt crisis and the deepest recession in modern economic history.
consequently, and as a serious warning, If not tackled urgently launching a realistic response to quickly and in the first issue in the international media, the deteriorating situation in the Greek banking industry will be impossible to hide. The problem of the Greek citizens and the panic that everyone wishes to disappear will be very difficult to avoid with extreme consequences for the state as a whole