Super-wealthy investors move billions out of Greece

[Robbien]

Source: Guardian

A staggering €8bn-€10bn (£7bn-£8.7bn) may have been taken out of Greece by private investors since it became engulfed by economic turmoil in November.

Under pressure from the European Union and international markets to rein in the nation's €300bn debt, socialist prime minister, George Papandreou, announced last week that he would have to enforce tough deficit-cutting measures. But the coming austerity package is leading panicked wealthy Greeks to divert their savings out of the country.

"In the last four to six weeks a lot of money has been moved abroad; I've heard extraordinary figures," analyst, Kostas Panagopoulos said. "People are moving funds either because they don't trust our banking system, want to avoid what they fear will be taxes on deposits or are simply anxious about the future of our economy."

. . .

In the 29 years since Greece entered what was then the European Community, it has increasingly become divided between the very rich, who live in Hollywood-style opulence in the outer suburbs, and the poor, who are forced to survive on pensions of €500 a month.

. . .

"Greece has a lot of rich people who are not being taxed properly because there is so much tax evasion," finance minister Giorgos Papaconstantinou, told the Observer. "If you look at the actual numbers, you will see that the number of people declaring over €100,000 a year is roughly 15,000," he said. "I don't think that there is anyone in this country who believes there are only 15,000 Greeks earning more than €100,000 a year."

The growing flight of funds from Greece has whipped up much resentment among the public. "It's revolting," said one popular radio chat-show host last week. "After pillaging the country, they flee with their ill-gotten gains at the very mention of the word tax."


Read more: http://www.guardian.co.uk/world/2010/feb/07/greek-rich-pull-out-billions-debt

[HeresyLives]

1. Oooch, capital flight. Not good.

And these days it can be done in seconds if need be.

[aquart]

2. Let every nation tax the pillagers.

But they won't because they want the flight capital. Does it say who got the money?

[gateley]

3. That's what I've often wondered - when money is 'moved' --

where is it moved TO? :shrug:

[aquart]

5. A lot of it used to run here.

But now? Brazil?

[gateley]

8. I guess I should be glad I don't have to worry about it. :-) nt

[HeresyLives]

7. Depends on who owns it.

Usually it's moved to other countries, other investments, other bank accounts.

[closeupready]

16. I presume to jurisdictions with strict banking secrecy laws.

Such as Switzerland (although that is probably changing now), Liechtenstein, Singapore, Panama and other such places.

[Robbien]

4. "Very big transactions are going through Cypriot banks"

"Greeks feel that Cyprus is not only close, but safe."

[robcon]

6. I wouldn't keep any of my money - no matter how little it is - in Greek currency.

n/t

[Robbien]

9. Greek currency is the Euro

which has been beaten up quite a bit lately

[Lucky Luciano]

10. You mean the Euro? nt

[fascisthunter]

11. It's nice to see the wealthy give a damn about Greece

or any other country for that matter. And yet they bitch about taxes.

[HeresyLives]

13. Why would international investors care about Greece?

Or any other country for that matter?

[fascisthunter]

15. "...panicked wealthy Greeks to divert their savings out of the country"

because some are Greek themselves. Why should a investor give a damn about their own country???

geez man

[Robbien]

12. “Goldman Sachs pretty much has taken a leading role on advising Greece at the moment,

“Goldman pretty much has taken a leading role on advising Greece at the moment,” said a Greek economic consultant. “Their competitive advantage is that they are smart guys and come up with good ideas. That certainly helps in a crisis like now,” the consultant said.

http://www.ft.com/cms/s/0/53bbbd40-0c42-11df-8b81-00144feabdc0.html


With those so called "smart" guys at Goldman advising them, Greece is up shit creek. Goldman's job is never to help anyone. Its first, last and only job is to make money for themselves.

[DeSwiss]

14. Yep. n/t