On June 15, 2012, I did a post on how bank runs in Greece are getting worse.
Since then, the situation has only further deteriorated. The economy of Greece is now in a black hole of rampant tax evasion and the loss of all trust in the banking system.
Tyler Durden writes for ZeroHedge, July 26, 2012, that bank runs or “deposit outflow” from Greek banks are now “relentless” and “epic,” as all trust in the local banking system is now gone.
As much as €7 billion ($8.656 billion) in deposits is pulled and 20% of the entire corporate and household deposit base has vaporized in the past year.
Here is the just released move in June deposits in Greece:
At the same time, Greek businesses are simply not paying taxes.
reports, July 27, 2012, that the Greek government’s Financial Crimes Squad (SDOE) on Thursday reported that 6 in 10 businesses inspected at popular tourist resorts were not issuing sales receipts, and that of the 1,410 checks conducted in July, 57.1% found business owners to be in breach of the law. In Zakynthos in the Ionian and Rethymno on Crete, every business inspected was breaking the law, while on the islands of Paros and Myconos, 70% were avoiding taxes.
SDOE officials said that they recorded a total of 22,435 infringements during their sweep.
Durden concludes with this observation: Greece is “an economy in which it is every man for himself and where nobody pays any taxes any more, period.”