Economists have spotted a worrying recent trend in Greece: people there are buying cars.
The purchases have given a signal that the country is in the midst of a run on the banks.
Sales soared by 47% in April alone and that was the 20th month in a row in which car registrations rose for both new and used vehicles.
When the Greek government called snap elections in December, car registrations that month rocketed by almost 70%.
Such “hard” asset purchases are not limited to the Greek drama. Similar behaviour was exhibited in Russia during its financial meltdown late last year. When the rouble crashed, many Russians went on a buying spree for expensive items, including autos.
When it was the turn of Cyprus to rush into a banking crisis in 2013, car registrations nearly trebled in 10 months. Most purchases were made in cash.
Ironically perhaps, Greece is one of the biggest markets in Europe for German cars.
Comments
So they started staking out posh restaurants and yachting marinas. And bingo ....
Far too risky though for Portuguese tax police in this country whose job would be on the line if they discovered someone important spending money they could not account for.
Much safer to stay hounding the car boot fairs and flea markets ! So what if totally useless for Portugal - the priority is to keep your job !