Greece's economy sinks into a black hole

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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:

~click graph to enlarge~

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.”

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0 responses to “Greece's economy sinks into a black hole

  1. Honesty is important both for the government towards the people and for the people towards the government, it is called mutual trust. One without the other destroys the country. The people have a duty as the final authority to punish men in government for betraying the trust and the men in government also have a duty to punish individuals who betray the trust of the country. It is this mutual trust that is needed for a country to survive.

  2. Thank you Dr. Eowyn for this incredible post. Paul, you make a very good point and I agree completely. This is awful!

  3. Dr.Eowyn, thankyou for spot on accuracy!!

  4. Dionysus is in drunken rule, drinking sweet purple draughts from the dregs of the barrel from his wineskin as the satyrs dance and play their seductive pipes and the storm clouds circle grey and threatening while Cerberus bays at the wind with tripled throaty mourning….and Hades awaits.

  5. Greece has been too comfortable with the communist party for a long time. They are a warning to us all.

  6. Cloward and Piven must be happy.

  7. I haven’t seen anything directly citing the tremendous expense building the venues, infrastructure and providing the security to host the Olympic Games was a major factor in their economic downfall. But, I wouldn’t be at all surprised if the debt they incurred is part of their problem.

  8. And us if don’t turn this country around…


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