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They certainly can threaten to stop any liquidity to Greece, collapsing all Greek banks.... and this is, I think, the threat the Greeks would receive.

So... if the election turn out as good as they might seem now, no austerity but all greek banks going under... what is the next step? out of the euro?... I guess.. or what? A country without banks nor savings... that would be interesting to see.

Am I wrong?

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Sun May 6th, 2012 at 05:19:10 PM EST
[ Parent ]
Once out of the Euro, they would be free to recapitalise their banks with newly printed money. Or by telling their creditors that it's just too bad to be the creditor of an insolvent institution.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun May 6th, 2012 at 05:26:40 PM EST
[ Parent ]
Absolutely.. that's why I can not imagine  the EBC implenting the threat as any other thing that the signal that Greece is out of the euro...

I guess your answer is implicit. :) I am right.. there is no way Greece can stay in the euro without any bank. They need an immediate capitalization.. adn for this (if the ECB doe snot provide it) they must do it with local currency.

A pleasure

I therefore claim to show, not how men think in myths, but how myths operate in men's minds without their being aware of the fact. Levi-Strauss, Claude

by kcurie on Sun May 6th, 2012 at 05:31:20 PM EST
[ Parent ]
There is no way that Greece can remain in the Euro as currently constituted.

Of course neither can Germany remain in the Euro as currently constituted, because the Euro as currently constituted is built to fail.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun May 6th, 2012 at 05:44:49 PM EST
[ Parent ]
And is increasingly visibly doing what it was built to do and, unfortunately, taking maximum casualties with it. The sooner this process is ended the better for all.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon May 7th, 2012 at 01:10:19 AM EST
[ Parent ]
If they do the German government will rip a $23 billion hole in the Balance Sheets of German banks and $7.43 billion in exports.  

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Sun May 6th, 2012 at 05:55:30 PM EST
[ Parent ]

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