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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDeposit Flows Show Money Leaking From S. Europe to Germany
http://www.bloomberg.com/news/2012-02-24/bank-deposit-flows-show-money-leaking-to-germany-from-spain-euro-credit.htmlMoney is leaking out of banks in southern Europe as customers scoop deposits out of Greece, Spain and Italy to move cash to less indebted nations such as Germany.
Greece (TODETOGR)s total deposits plunged 28 percent from the peak in June 2009 to 169 billion euros ($225 billion) at the end of December, according to data compiled by Bloomberg. In Spain (TODETOES), deposits slid 5 percent in the five months through November to 934 billion euros, the least since April 2008. Italian (TODETOIT) banks held 974 billion euros in November, the lowest in 18 months.
Deposits in Germany (TODETODE) have climbed by almost 10 percent since May 2010, when Greece was granted its first bailout. Deposits have risen every month except five since the end of 2009, and reached 2.15 trillion euros at the end of 2011, Bloomberg data show. The deteriorating growth outlook in the euro region risks exacerbating those flows, according to Dario Perkins, an economist at Lombard Street Research in London.
The biggest systemic risk is if people lose confidence in keeping their euros in Spain, Portugal or Italy, Perkins said. It makes sense to put your cash into Germany just to be safe and thats where the real systemic danger lies. That contagion isnt priced in, and bank deposits are the place wed spot it.
Trillo
(9,154 posts)I don't mean immigrants, I mean money from foreign countries. People are routinely kept from migrating, or when they want to legally migrate requires jumping through hoops, permits, etc., but money is not considered the same?
It seems to be an enslavement tool, to allow the free movement of money and goods, which allow profits, but not people, who may wish to move to a place with better wages. Nothing may get in the way of profits and thus money moving, but lots of things including poverty seem to get in the way of people moving from place to place.
xchrom
(108,903 posts)while not entirely free -- it is easier to move around the E.U. -- if you are from a member state -- than it used to be.
this another example of how the already well off countries are benefitting from the stresses of the PIIGS.