Bank runs: Corralitos coming to Greece and Spain?

1 comment

Greeks are running to the banks to get their money out and an eventual “corralito”, freezing all accounts is very much unavoidable. € 800 million left Greece last week and most companies already took their money abroad long time ago. The economy in Greece is beyond repair at his point and it will eventually leave the Euro and go back to the Drachma and Spain will probably follow some time later. While this will be a huge blow to the EU, it is the first step towards independence. The problem is that with the Euro to Drachma or Peseta conversions people will lose a significant amount of their purchasing power. Its clearly better to have Euros under the mattress now and change them later for a favorable exchange rate. Eventually it will become a double standard economy, with real estate, importations and cars being priced in Euros but people earning in Drachmas.
This article from The Economist draws the obvious comparisons between Greece and the Argentine economic collapse.
In this video I explain Corralitos a bit, what they are, what’s happening now in Greece and what are some of your options for protecting your savings.

FerFAL


Advice to a Reader in Greece: Video Reply

0 comments