There is an underlying Greek banking crisis which nevertheless the Greek political and financial leaders refuse to confess. They are attempting to prevent producing panic and hope (against hope) that it can be overcome. They are misguidedly thinking that if the European crisis subsides, so their problems will too. Absolutely nothing could be more incorrect.
After my discoveries became recognized, increasingly more doubters in the financial community are seeing the facts and are starting to speak openly about the Greek banking issues. They understand that these require instant treatment prior to the damage triggered by a sharp escalation will become permanent. What the devious politicians attempt to conceal is the remarkable way the stock exchange (the banking sector) has collapsed with banking shares suffering an extraordinary crash. It is a reality that throughout the last 12 months the loss of Greek banks varied from 14% to 70%; with an overall revealing eleven of them are more than 40%.
The Greek banking market has actually remained in 'crisis' given that November 2009 onwards and the Greek federal government has completely stopped working to stop this process while refusing to comprehend what the Greek banking crisis is, and the real factors behind it. This is nothing less than a secret banking crisis. Do you require even more evidence? All you need to do is look at the control panel of the Athens stock market to understand that global investors have sold out the Greek banking shares.
The most essential reality of all, nevertheless, is that Europe has actually not comprehended it deals with as a whole, a severe banking crisis, which increases systemic threat and the Greek banking sector which, even if they were totally healthy - which it is not - faces a major systemic infection danger. When the international banking crisis broke in 2007, the then Greek federal government made sure to stress that Greece did not deal with any risk as the Greek banks were not exposed to toxic financial investment items. At the same time the opposition, had actually then quickened to confirm this logic with the result either of the 2 major celebrations not to speak about the requirement to safeguard the Greek banks from possible contamination, which was more than particular. What a classic error of denial!
What is ignored is that financial investment products are not 'born' however end up being poisonous when scenarios change for the worse which the paths of worldwide capital quickly move an issue from one continent to another. The inability of the Greece, and her mounting issues (seen in their true light) and the connection with European and global economic and financial environment has actually already cost Greece, the EU and the world, the worst debt crisis and the inmost economic downturn in modern-day economic history.
And as a major warning, If not dealt with urgently launching a realistic response to rapidly and in the first issue in the international media, the degrading situation in the Greek banking industry will be impossible to hide. The problem of the Greek residents and the panic that everyone wants to vanish will be really difficult to avoid with disastrous effects for the state as βασίλης κικίλιας basket a whole.