With Greece experiencing political instability & embarking on a slow banking run, attention must be paid to other — more important — countries.

While the exit of Greece from the Euro may be of great importance to the Greeks, it won’t make much difference to the rest of Europe. However, what does become critical is preventing “follow on” — breaking the chain of dominoes, before failure ricochets across Europe.

Spain’s banking sector is in trouble, and with it likely next after Greece, action is needed now. The future of the Euro, may well play out in front of us over the next 2 months…
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The European Central Bank has stopped providing liquidity to some Greek banks as they have not been successfully recapitalized, the ECB said on Wednesday.

Greek banks have been experiencing strong withdrawls of euro (800 million per day), as citizens prepare against possible exit from the euro & devaluation of their deposits. Continue reading →