‘Secret’ Greek Banking Crisis Has Killed the Athens Stock Exchange
There is an underlying Greek banking crisis, however, which Greek political and economic leaders refuse to admit. They are trying to avoid creating panic and hope (against hope) that it can be overcome. They mistakenly believe that if the European crisis subsides, so will their problems. Nothing could be more wrong.
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 strong escalation becomes irreversible. What the devious politicians try to hide is the dramatic way in which the stock market (the banking sector) has collapsed with bank stocks suffering an unprecedented drop. It is a fact that during the last 12 months the loss of Greek banks ranged between 14% and 70%; with a total showing that eleven of them are more than 40%.
The Greek banking industry has been in ‘collapse’ from November 2009 onwards and the Greek government has completely failed to stop this process while refusing to understand what the Greek banking crisis is and the real reasons behind it. In fact, this is nothing less than a secret banking crisis. Do you need more proof? All you have to do is look at the board of the Athens Stock Exchange to understand that international investors have sold the shares of the Greek bank.
However, the most important fact of all is that Europe has not understood that as a whole it is facing a serious banking crisis that is increasing systemic risk and the Greek banking sector, which, even if it were completely healthy – which it is not – is facing a serious risk of systemic infection. When the international banking crisis broke out in 2007, the then Greek government was careful to emphasize that Greece did not face any danger as Greek banks were not exposed to toxic investment products. At the same time, the opposition had been quick to confirm this logic with the result that neither of the two major parties spoke of the need to protect Greek banks from possible contamination, which was more than certain. What a classic denial error!
What is overlooked is that investment products are not ‘born’ but become toxic when circumstances worsen and that international capital routes quickly move a problem from one continent to another. Greece’s inability and growing problems (seen in their true light) and connection to the European and international economic and financial environment have already cost Greece, the EU and the world, the worst debt crisis and recession deepest part of the modern economy. history.
Therefore, and as a serious warning, if it is not urgently addressed by launching a realistic response quickly and in the first number in the international media, the deterioration of the situation in the Greek banking industry will be impossible to hide. The problem of the Greek citizens and the panic that the whole world wants to disappear will be very difficult to avoid with catastrophic consequences for the State as a whole