There is a hidden Greek banking crisis which however the Greek political and economic leaders decline to confess. They are trying to prevent developing panic and hope (against hope) that it can be overcome. They are misguidedly believing that if the European crisis subsides, so their problems will too. Absolutely nothing could be more mistaken.
After my revelations became known, more and more skeptics in the monetary community are seeing the realities and are starting to speak openly about the Greek banking issues. They know that these need instant treatment before the damage triggered by a sharp escalation will become irreversible. What the sneaky politicians try to conceal is the remarkable way the stock market (the banking sector) has collapsed with banking shares suffering an unmatched crash. It is a fact that throughout the last 12 months the loss of Greek banks ranged from 14% to 70%; with a total showing eleven of them are more than 40%.
The Greek banking market has actually remained in 'disaster' because November 2009 onwards and the Greek government has entirely stopped working to stop this process while refusing to comprehend what the Greek banking crisis is, and the real reasons behind it. This is absolutely nothing less than a secret banking crisis in reality. Do you require even more evidence? All you have to do is take a look at the dashboard of the Athens stock market to understand that international investors have sold out the Greek banking shares.
The most important truth of all, however, is that Europe has not understood it faces as an entire, a serious banking crisis, which increases systemic risk and the Greek banking sector which, even if they were entirely healthy - which it is not - deals with a severe systemic infection threat. When the global banking crisis broke in 2007, the then Greek federal government made sure to stress that Greece did not face any risk as the Greek banks were not exposed to harmful investment products. At the exact same time the opposition, had then sped up to validate this reasoning here with the outcome either of the two major parties not to talk about the requirement to safeguard the Greek banks from possible contamination, which was more than certain. What a timeless mistake of rejection!
What is ignored is that investment products are not 'born' but become poisonous when scenarios change for the worse and that the paths of global capital quickly transfer an issue from one continent to another. The failure of the Greece, and her mounting issues (seen in their real light) and the connection with European and global financial and monetary environment has actually currently cost Greece, the EU and the world, the worst debt crisis and the deepest recession in contemporary financial history.
And as a severe warning, If not taken on urgently launching a sensible action to rapidly and in the first concern in the global media, the deteriorating situation in the Greek banking market will be difficult to conceal. The problem of the Greek citizens and the panic that everybody wishes to disappear will be really challenging to avoid with disastrous consequences for the state as a whole.