Greek Deposit Plunge Continues As Tax Inspection Finds Every Business On Zakynthos Broke The Law

Tyler Durden's picture

On one hand we have Mario Draghi promising he has a magic wand (not a printer - remember the keys to that are now held by Angela Merkel who is on vacation) and to "believe him" that the EUR will survive. On the other we have Greece which is a poster child of everything that is wrong in Europe. And that we summarize as follows: i) an epic and now relentless deposit outflow from Greek banks which continues as all trust in the local banking system is now gone, as €7 billion in deposits or the second biggest amount ever, is pulled and 20% of the entire corporate and household deposit base has vaporized in the past year, and ii) an economy in which it is every man for himself and where nobody pays any taxes any more, period. Best of luck in preserving that EUR Super Mario.

Here is the just released move in June deposits in Greece:

And a quick story on which Greece will never be fixed no matter what magic Draghi and Potter concoct between them:

The Financial Crimes Squad (SDOE) on Thursday reported that six in 10 businesses inspected at popular tourist resorts were not issuing sales receipts, and that of the 1,410 checks conducted in July, 57.1 percent found business owners to be in breach of the law.


SDOE officials said that they recorded a total of 22,435 infringements during their sweep, and that their efforts will continue throughout the summer.


In Zakynthos in the Ionian and Rethymno on Crete, every business inspected was breaking the law, while on the islands of Paros and Myconos, 70 percent were avoiding taxes.

No deposits, and no tax revenues: thank you Germany for continuing to fund this slow motion trainwreck thus providing everyone with hours of taxpayer-subsidized entertainment.

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MiguelitoRaton's picture

Tax Evasion Bitchez!

agent default's picture

Sounds more like self defense.  Apparently the Greeks have decided to starve the beast.  I think we should be taking notes.

Rubicon's picture

Sitting here on Paros I can confirm that the inspectors have been out in force visiting all taverna's. Ive never seen a Greek move so quickly.

agent default's picture

Let us know when the owners decide enough is enough and start kicking them out.  Has happened before.

Rubicon's picture

The report is true. Most business owners suddenly started issuing receipts. Generally the Greeks are not happy but equally very apprehensive about losing the Euro. Understable really.

economics9698's picture

This will really piss off the old farts on Social Security.  Oh fuck that means America is next.

TheFourthStooge-ing's picture

Rubicon, thank you for your comments. I value local perspectives because they enhance my understanding of what is really happening and aren't subject to news media filters.

Taraxias is also Greek, and I'm hoping that you will both continue to keep us updated on the situation there. Thanks.

Gief Gold Plox's picture

No Taxes and you yourself hold what would otherwise be your deposits (read: loan to the bank)?

Sound suspiciously like "financial freedom" to me.

I think I need to buy a gun's picture

all you can do now is laugh and abandon the system as we know it. I haven't seen one mass hiring in the united states in 4 years where the hell is everyone going? I was just on daily job and saw more mass layoffs today  thats not even being reported in the mass media anymore

zuuuueri's picture

al capone and his henchmen are touring the streets breaking kneecaps to remind everyone to give him his 23% cut of everyone's business. that's pretty much what it comes down to.

They Tried to Steal My Gold's picture

Sit down relax...can I get you another ouzo?


azzhatter's picture

Sounds like the greek people have a good business plan

JLee2027's picture

Self-defense from Tyranny is justified. 

Sounds more like self defense.  Apparently the Greeks have decided to starve the beast.

Buck Johnson's picture

Exactly what any society would do when the economy is busted, it goes more black market.  They keep saying that Greece leaving isn't bad but they won't let them leave.  And thats because if they do leave and default trillions of dollars in derivative contracts would have to be settled and these banks don't have the money.  Let alone the money for the hundreds of billions of dollars of debt it was written on.

ForTheWorld's picture

When a Greek does it, it's tax evasion, but when an American does it, it's rallying against the government and abiding by the constitution. I get it now.

Joebloinvestor's picture

Greece, the lamprey eel of the EU.

Cangoroo's picture

I guess it is all in rock solid Sterling accounts. Poor Greeks.

Cangoroo's picture

I guess it is all in rock solid Sterling accounts. Poor Greeks.

101 years and counting's picture

kicking greece out qualifies as doing "whatever it takes to save the EUR". 

bank guy in Brussels's picture

That really might be true, ironically enough, kicking out Greece the turning point of the EU plan

Knowing that Greece leaving the euro might create huge contagion and collapse in the rest of the euro-zone, within days, just like the meltdown on the Thursday after the Lehman bankruptcy Sunday night

To get various politicos and publics (like in Germany) to sign up to bond-buying, money-printing, and a giant multi-trillion redemption fund, EU leaders might need that kind of big collapse, and so they might force the Greek exit to get that collapse

Various ZH articles have said Greece leaving the euro would be '10x Lehman' and so forth ... the Brussels leadership may be taking notes ... could be just what they need to shove through the big EU plan

- - -

To recall a Zero Hedge classic ... The post-Lehman near meltdown of the US and global financial system in 2008 ... from ZeroHedge, 'How The World Almost Came To An End At 2PM On September 18':

« On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.

If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.

We are no better off today ... »

Unbezahlbar's picture

Moral of this BIB post:

"If you see a line in front of the bank, get in it."


ForTheWorld's picture

Seeing as though I've only been reading Zerohedge for a little bit over a year, and I'm not in the finance industry (although the work I do relates to finance), why was there such a draw-down of half a trillion in the first place? I understand Lehman Brothers shat the bed and that was the catalyst, but I'm curious (if you or anyone can shed any light on it).

The comments on that page shed little to no light on the subject however.

Calmyourself's picture

How on Gods green earth can anyone be stupid enough to leave money in a GREEK BANK??

Haager's picture

Greeks should ask for credit, take it and run away as fast as possible.

citta vritti's picture

that's what they've done and are doing

zorba THE GREEK's picture

It does seem strange that anyone in Greece would leave money in a Greek bank.

My guess is those bank deposit numbers are fudged and only a small fraction of

the money is still there. The Greek Gov. probably used their bail-out money to

pay off bank depositors ( Fellow Greeks ) and is covering it up so the Troika doesn't

find out. At least the Greek Gov. cares about their people. 

alien-IQ's picture

"those bank deposit numbers are fudged and only a small fraction of the money is still there"

Doesn't that sound more than a little bit like our very own fictional reserve banking system?

agent default's picture

And you think any other bank is any safer?  Because you know there are firewalls in the system, and Germany can bail out the world after all.

Good one.

JLee2027's picture

Fixed it for you. :)


How on Gods green earth can anyone be stupid enough to leave money in XXXXXX ANY BANK??


transaccountin's picture

the outflow was less than may, good for another 20 es!!

azzhatter's picture

if you slit a pig's throat eventually the bleeding slows down, doesn't mean the pig's gonna live

yrad's picture

Sounds like that might be a good idea for Americans.

I can waste my money better than they can.

WTF_247's picture

Americans could stop all these big banks right in their tracks.  Simply having everyone pull out 15% of their total deposits and NOT putting it back into any bank would cause havoc all over the place.  Ask for cash, keep the cash.  I would even go so far as to say that would cause the fed and others to enact capital controls (you can only take out x per day max) to stop us from getting our own money once they saw what was happening.

The only issue is that cannot be done with 401k/IRA type accounts so the banks would still have access to that dough.

Heck, I bet there would be massive issues if most of the population that gets a paycheck under 10k per month simply cashed the payroll check (at the issuing bank) and brought the money home vs leaving it in the bank.  Instead of debit cards pay cash for everything.  With the amount of leverage in the system this simple act would likely cause some huge problems.

wee-weed up's picture

WTF_247 said:  Instead of debit cards pay cash for everything.

TPTB have a plan for that eventually... all retail pruchases will be required to be made with plastic - THEIR PLASTIC!

JLee2027's picture

Unenforceable I would think. At the least you'd create a thriving black market that only takes cash.

wee-weed up's picture

Please note I said "retail" purchases. I agree blackmarkets and barter systems will spring up, but retail businesses which allowed cash purchases after the decree would be swiftly shut down by the gubbermint.

rgbensonaz's picture

Why can't it be done with your 401k? I cashed out my old 401k/IRA last year and my wife did this year.  I rather pay the 10% tax penalty and blow the money meself unstead of letting Wall Street have it.  We actually bought some rental houses which are a lot better ROI than bonds/equites.

JLee2027's picture

Capitol controls would probably accelerate the problem. 

Of course if they won't let you withdraw your money, then spend it on Gold and Silver. Problem solved.

jerry_theking_lawler's picture

Americans have more control of the .gov than we think.


Stop paying your weekly, biweekly, or monthly tribute (income tax deduction directly from your payroll) to the system and see what happens to 'the beast'. it would starve in about 2-3 months.

barliman's picture


Bailout - pumping money into a hole in the bottom of a sinking ship of state or the bloated carcass of a TBTF.

Google: Einstein, Famous Quotations of


Haager's picture

I'm pretty sure that those evasions are already priced in... in default.


TideFighter's picture

Go to Zakynthos, it's 30% cheaper.

nmewn's picture

Take the money and run.

BandGap's picture

People act like this is something new. It isn't. I think I read something awhile back where only about 11% of all Greeks actually pay taxes. To them, evasion is an art form.

No one thinks it's odd that 90% of all US drivers break the speed limit every time they drive. This is no different, it's just a cultural thing.

nmewn's picture


Just got back from vacation...I was very happy to pay for certain things in cash and certain people were very happy to oblige ;-)