Friday, 30 January 2015

Run on Greek banks no worry says Varoufakis

Yanis Varoufakis the new Greek government finance minister was on BBC News Night via video link tonight. He spoke as if he wants to negotiate a way out of the countries financial difficulties which was bad news for me as I have been predicting Greece's collapse  and Eurozone turmoil. It is a view I have held for sometime and even in the face of what appears to be sensible news from Varoufakis  it is still a stance on which I hold firm. Personally I don't see the Greeks staying in the EU and those with money are already withdrawing their cash from the banks and getting it out of the country.
For those Greeks struggling to get by a run on the banks will hurt the hardest. Economic meltdown will result in Europe wide panic. But for us Brits it will hurt even though we are no part of the Euro based financial experiment. Financial markets dislike uncertainty and what with oil prices in free fall due to the ISIS crisis and the Russians flexing for a fight over Ukraine plus China slowing down we have a recipe for chaos.
I am sticking by my default theory mainly because of I don't want to be seen as inconsistent and it is I think you will agree the most exciting scenario of them all. If you exclude a new Cold War.

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