Opinion – Greek banks prepare plan to raid deposits to avert collapse – FT.com – John Gelmini

The need for bail ins was established by Merkel and the EU at the beginning of last year and the Cypriot “hair-cutting ” some set the precedent and represented a dry run.

Dr Alf is therefore right when he says bail ins are attractive to Greece’s creditors.

By a process of elimination, we can see that the Greek Government are once again stretching reality:

1) The Greek Government has no money of its own and exports are not significant
2) Tourism produces too little money in taxes to cover the costs of providing public services
3) With no new bailouts, Greece has no money except what is left in bank deposits, so that is the only source of money, given that Russia refuses to buy Greek bonds, China will only lend against secured assets and the IMF has run out of patience.

John Gelmini

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