Anxious Greeks pull money from banks amid fears of capital controls – FT.com

One of the most-read articles in the FT takes a subjective look at  how ordinary Greek people are pulling money from banks amid fear of capital controls. It’s a must-read article. Check it out!

via Anxious Greeks pull money from banks amid fears of capital controls – FT.com.

According to the article ordinary people, including owners of small businesses and pensioners don’t trust the left-wing Syriza party, and are buying new cars or trying to move savings out of Greece.

There seems to be a hardening of positions between creditors and Greece’s government, with the substance of reforms being the sticking point. Personally, I fear that the Syriza government does not have the domestic political power to agree to further reforms. It looks increasingly likely that Greeks will chose increased poverty over reform. I sense that the probability of a major default from Greece is increasing by the day. In my judgement, a Syriza triggered default will be cause immense hardship in Greece. And I would expect contagion to impact the Eurozone and the world’s financial markets.

Thoughts?