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2012-05-17 18:28:02 Greeks Withdrawing Cash from Banks as Financial Fears Grow

Transcript by Newsy: http://www.youtube.com/user/NewsyWorld?feature=guide Image Source: Bloomberg) BY EMILY ALLEN Take the money and run. Fears about Greece using the Euro in the future have some investors doing just that. Good Morning America says you can already see its impact on world markets. "All three U.S. indeces were lower and all the major overseas exchanges were also off overnight all because of the intensifying worries that Greece may default on its debt and pull out of the Euro currency." And now, there is fear of a bank run. In the past week, Greeks have pulled close to $1 billion from the nation's banks. It's possible Greece could switch back to its former currency. The Washington Post says Greeks are scared their savings would be replaced by the less-valued drachma. So they're withdrawing their euros and putting them in a safe spot like a German bank but... "It's a smart move by those individuals. The problem, though, is that if everyone in Greece does this, it could inadvertently get Greece kicked out of the euro." So who's to blame for Greece's financial turmoil? CNN says it's every Greek who doesn't pay his or her taxes. In a country with widespread tax evasion, that is a lot of people. "It's not the bankers or those who have made fortunes in insurance— although they could probably pay more taxes -- it is the vast number of ordinary people who need to pay ordinary taxes." And discussion in the Eurozone about Greece isn't helping. The EU has already given the country two bailouts in order to pay its bills. One economist tells Today if the 17 countries decide to leave Greece out of the Eurozone... "...it would provoke 'the mother of all financial crises'. The contemplation of this possibility by EU leaders is making matters even worse. Greece has no chance of recovery while this danger hangs over its economy." And Fox News says Greece's political climate isn't necessarily a beacon of stability — adding additional anxiety. "They can't even get a government together. They had elections on May 6th which resolved absolutely nothing. Now today naming a caretaker government, that will be in there just until next month when they have new elections with the hope that that will somehow make things better." And The Huffington Post's Jeffrey Rubin says, that could create a new crisis like the one in 2008. "A Greek default would start in Athens, but it wouldn't be long before it's felt in Paris, Berlin, New York and Toronto. In today's intertwined financial markets, everyone has exposure to everyone else's problems."

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