Greece lawmakers approved 2012 austerity budget yesterday with a overwhelming 258 - 41 majority in the 300-seat Parliament. The budget foresees a fourth year of recession. Economy is expected to contract 2.8%.
Earlier in the day there was violence outside the Parliament caused by about 2,000 student. With unemployment reaching 18.4% in August, it is hard for the youth to get a job. Unemployment plus high food price, Greece is expected to have more violence in 2012.
The next worry is the possibility of a "Bank Run". Worry about their country will be kick out of the Euro Zone, Greeks have been removing 100% of their savings from Greek banks. At the start of 2010 total savings and deposits with the banks was about Euro 237 billions. The amount has dropped to Euro 188 billions by August 2011. Since August the decline started to accelerate. Savings fell by Euro 5.4 billions in September followed by another Euro 8.5 billions in October, a record in a single month.
For more story, click Panic in Greece
The storm has yet to start.
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