US firms are shipping in cash to Greece

[MyNeighbourIsStrange]

As they think Greece will leave the Euro after the weekend. What do you think?

Just got back from holiday in Rhodes, Greece.

Talked to our friend who owns the hotel about their economy. He said that he thinks the Drachma will be reintroduced but he didn't think it would be this year.

On a sad note...we go to Faliraki (bad reputation but lovely resort) we noticed how many shops and bars have closed down. Used to be a bustling lively town but was very quiet there last week.

Truck loads of cash apparently, to pay their employees when Greece leaves the Euro. Loads of reports all saying the same thing, copying from one source.

Financial Times have an article on this matter.

Greece will leave the Euro - that's a given. Not sure it will be this weekend though. I would assume there has to be a reasonable notice/change over period.

I did a bit of research last night, the FT got the story from NY times.

yes, and what does that mean? They are going to have US dollars instead?

I can't find an article so a link might help. But normally, if you want to protect employees in a country with an unstable currency, you pay them in a stable currency and you do it by electronic transfer. I expect Zimbabwean employees of US companies are paid in USD rather than Zim Dollars. Greek employees would presumably prefer to keep being paid in Euros (or USD) rather than a new, devalued Drachma. Don't understand why shipments of cash would be required.

found a link!

OK now it makes more sense. A contingency plan for cash shipments if the banks are closed for day and employees can't access cash. It's a big 'if'.

I wish there could be an end to this type of scaremongering. Every time an article/ headline like this comes out, people rush to the banks and empty out their accounts, "just in case", thereby making the problem worse (although perfectly understandable for the individual). Then it gets put under the proverbial mattress, and guess what? The crime rate has rocketed in Greece, with burglars checking under all those mattresses...

Cogito
your link is wrong.

I can't get the link to work bu I'm interested that the crunch point could be just days away

How Merrill Lynch 'plans to send trucks full of cash into Greece' as U.S. firms plan for country's exit from the euro

I think the 'crunch point' ideas are very premature, especially now Draghi has made his bond-buying announcements.