Clashes in Greece Strike Against Austerity Plan
BBC
Police in Greece have clashed with protesters striking over austerity measures designed to save the economy.
Greek police fired tear gas at a group of some 50 protesters on the edges of the rally, reports said.
It is the second general strike in two weeks and coincides with growing anger at the EU's response to the crisis.
The action is set to be the biggest since Greece's socialist government introduced cuts to bring the country's debt and deficit under control. Greece has closed airspace to all flights, trains and ferries are standing idle, and archaeological sites have been shut.
The BBC's Malcolm Brabant in Athens says that for the second time this month, Greece will be isolated from the rest of the world for 24 hours as all flights into and out of the country have been cancelled.
Commuters will be left without most forms of public transport, while public schools, ministries, and municipal offices will be closed. Many hospitals will operate only with emergency staffing.
Archaeological sites, including the Acropolis, will be closed to tourists, chipping away at the country's international image, our correspondent says.
Staying with Greece...
In The Worst Possible Moment, Fitch Downgrades Greece's Largest Banks
ZeroHedge
And just as Greece was about to launch its 10 year bond offering... Where is Papandreou to claim that Fitch was bought by all the accounts (who may or may not invest in the €5 billion issue) to make the price even better. Because the spread to Bunds just jumped by about 10 bps to 325 following the news.
Fitch notes: "The rating actions reflect Fitch's view that the banks' already weakening asset quality and profitability will come under further pressure due to anticipated considerable fiscal adjustments in Greece. In particular, Fitch believes the required fiscal tightening that needs to be made by the Greek government will have a significant effect on the real economy, affecting loan demand and putting additional pressure on asset quality. The latter could result in higher credit costs, ultimately weakening underlying profitability." In the US, where any news is good news, equities jump following the headline.
More from Greece...
Greeks Scramble To Pull Out €8 Billion From Local Banks As Greece Responds With Money Control Measures
ZeroHedge
We previously wrote about the possibility of a bank run in Greece following unsubstantiated reports that Greek citizens don't trust the Greek financial system all that much anymore, courtesy of the whole bailout and GDP reporting fraud thing. The rumor was not only just confirmed and also quantified: Dow Jones reports that in the past three months Greeks have moved about €8 billion out of local banks "fearing a possible new tax on bank accounts, increased government scrutiny on assets and a run on the banks if Athens is forced to turn to the International Monetary Fund." This represents over a quarter of the money held by private banks in the country. This also represents about €400 billion in total money leaving the system courtesy of fractional reserve banking and the money multiplier. Yet the worst news for Greeks: money controls are coming.
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