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View Full Version : Banks know what is coming; Preparing for the return of the drachma



Peter1469
05-11-2012, 08:09 PM
(Reuters) - Banks are quietly readying themselves to start trading a new Greek currency. Some banks never erased the drachma from their systems after Greece adopted the euro more than a decade ago and would be ready at the flick of a switch if its debt problems forced it to bring back national banknotes and coins.

http://www.reuters.com/article/2012/05/11/us-banks-drachma-idUSBRE84A0DC20120511

RollingWave
05-11-2012, 10:14 PM
it's going to be a down right financial disastor if the Euro distengerates in a disorderly fashion

Peter1469
05-11-2012, 10:46 PM
Yes it will be.

But I will give it some time and then plan a month long vacation to Greece. I bet it will be a bargain.

RollingWave
05-12-2012, 12:52 AM
Yes it will be.

But I will give it some time and then plan a month long vacation to Greece. I bet it will be a bargain.

provided that you do it with money stuffed under your matress and go fully armed yes :grin:

RollingWave
05-15-2012, 03:22 AM
Well now, given now that the Greece are about to go all Belgium on their government (Belgium has been unable for form a cabniet for like 3 freaken years) and that even Merkel is suffering huge losses at home, it seems the EURO is screwed, at best only the PIIGS exist at worst the entire thing may blow up.

If things continue like this, it makes me wonder of countries like Germany would want to ... "foreclose" Greece if you get what I mean ..... luckily the US gave a bunch of M1A1 to the Greeks (for free!) I guess ...

To be honest though, if government defaulting has as much penalty as a person defaulting then I'd think politicians and voters would be much more rational in those decisions... imagine if debt holder take posssion of all the ancient treasures of Greece as collaterals, which might not actually be a terrible idea come to think of it, though almost impossible to do without war.

MMC
05-15-2012, 07:05 AM
Wouldn't there be a way to take all their money and gold, or conduct no buisness with them. Thru the banks?

Peter1469
05-15-2012, 12:06 PM
Greece will default, others will be ticked of for a while, and you will see other banks and nations lending to Greece again. And Greece will probably continue to spend more money than it has.

Trinnity
05-15-2012, 12:54 PM
Germany should save itself and cut off the moochers, by leaving the EU.

Peter1469
05-15-2012, 12:56 PM
Germany should save itself and cut off the moochers, by leaving the EU.

I think it will come to that if the Eurozone doesn't get rid of some of its dead weight.

RollingWave
05-15-2012, 08:58 PM
it is mildly amusing though that the dead weight is PIIGS and not the fomrer Soviet Block states ....

Peter1469
05-15-2012, 09:06 PM
it is mildly amusing though that the dead weight is PIIGS and not the fomrer Soviet Block states ....

True. Many of the FRSs never adopted lots of entitlement programs.

RollingWave
05-15-2012, 09:47 PM
I thought they still have a good number of old socialist programs hanging around though, isn't the general issue more that because they were so screwed in the early 90s that they have had a much larger margin for growth since then? given that their base was terirbly low? also many of them being willing to work elsewhere certainly helps aswell.

Peter1469
05-15-2012, 09:53 PM
I thought they still have a good number of old socialist programs hanging around though, isn't the general issue more that because they were so screwed in the early 90s that they have had a much larger margin for growth since then? given that their base was terirbly low? also many of them being willing to work elsewhere certainly helps aswell.

Right! They aren't so generous as their Western counterparts.