Greece : Capital Control and Potential Flow

Posted On 28 Jun 2015
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CAPITAL CONTROL AND POTENTIAL FLOW
In our Weekly Fundamentals piece issued yesterday we wrote that the coming week was all about Greece. Well the week has started early as this weekend has been full of Greek news.
A short summary of the weekend’s activity shows that:
Queues begun forming at Greek ATM machines immediately after the announcement of next Sunday’s referendum.
Estimates are that a further 1B Euro has been removed from the banks.
ECB has decided to cap its ELA at Friday’s level. This means no further assistance for the Greek banks.
The ECB announcement hightened withdrawals from the banks.
To stem the capital outflow Greek banks will remain shut until after the referendum on Sunday.
The Greek stock market will not open on Monday.
The queues continue to grow longer.
What will happen to the rest of the world and the various risk asset classes?
Your answers can be found in our STTS video which this week covers all the majors as well as the DAX, S&P500,
Gold and US Treasuries. It is a MUST WATCH.
In other words, Greek speculators both domestic and international have been thoroughly compromised.
You can buy risk assets all you want, but if the market is about to fall out of the bottom, you simply are not allowed to sell. Which, incidentally, is coming to every central bank planned “free market” near you shortly.

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