Greece + Germany

choi

My comment: There is no need to read the rest of any of the reports below.

(1)
(a) Stelios Bouras and Jenny Paris, Greece Teeters as Talks Fail; Depositors withdraw $898 million on Monday alone; Prospect of euro exit looms. Wall Street Journal, May 16, 2012 (front-page top report)
("In a potent sign of Greeks' rising anxiety, depositors withdraw E700 million ($898 million) from local banks, on Monday alone, according to the country's national banks--a significant escalation in capital flight from the country [following the call for a fresh poll]")

(b) Brian Blackstone and David Enrich, Surging Bank Withdrawals Fuel Fears of a Messy Exit. Wall Street Journal, May 16, 2012, at page 9.

Quote:

"With deposits falling, Greek banks become even more dependent on the European Central Bank to meet their funding needs, exposing the central bank [ECB] to potentially huge losses if Greece leaves the euro area.

"Monday's deposit withdrawal far outpacedGreek banks' steady decline in deposits since the start of the country's debt crisis in 2009, as depositors withdraw cash and transfer funds overseas.

(2) Ralph Atkins, Germny Keeps Eurozone From Grip of Recession. Financial Times, May 16, 2012.

Graphic titled "Germany powers ahead".
(a) The left panel headlined "GDP growth[;] % change from previous quarter"

..................Q4 2011.....Q1 2012
Germany..........-0.2.........0.5
France............0.1.........zero
Eurozone.........-0.3.........zero
Netherlands......-0.7........-0.2
spain............-0.3........-0.3
Italy............-0.7........-0.8

(b) The right panel headlined "Export dependence on Germany[;] % of exports going to Germany, Jan-Oct 2011"

Czech Republic....32.4
Austria...........32.3
Poland............27.2
Netherlands.......26.2
Hungary...........25.4
Belgium...........18.8
France............13,8
Portugal..........13.5
Italy.............13.5
UK................11.7
Sweden............10.6
Finland...........10.3
Spain.............10.3
Greece.............8.0
Ireland............7.0

Sources: Eurostat; IMF/UniCredit

Note: The annualized rate of Germany GDP for Q1 2012 was 2.1% (0.5% times four).