Greeks Make $1 Billion A Day Run On Banks

Rumors a radical leftist party which favors a return to the drachma is running neck and neck for the lead in the elections scheduled for Sunday is driving a run on Greek banks. Bankers are reporting that up to 800 million euros, or around $1 billion US dollars, is being pulled from major banks every day.

Retailers are reporting that people are using the money to stock up on pasta and canned goods. Continue reading

Euro Zone On Verge Of Breaking Apart

The possible departure of Greece from the euro zone combined with the worsening economic conditions in Spain and record high unemployment in the euro zone are threatening to cause a disintegration of the continent wide currency.

Olli Rehn, Brussels’ most senior economic official, says unless the nations that use the Euro are bound closer together the euro zone could collapse.

Italy’s leaders called for using euro bonds to create a path to “common debt” for Europe. Spain’s government is proposing a common fiscal authority for Europe to sync budgets of the member nations and manage overall debts. Continue reading

Business Activity In Europe Hits Three Year Low

A survey is showing that business activity in Europe has fallen to a 35-month low. In response, the euro fell to a 22-month low against the US Dollar.

European leaders failed to reach an agreement on how to handle the crisis as a proposal by French President Francois Hollande for pan-European bonds was opposed by German pending “more economic discipline” across Europe. Continue reading