With banks closed and the government virtually out of money, Greece has become isolated from the international economy — a big problem for society as a whole. Banks in this Mediterranean nation have been shut down for more than a week and are just days away from running out of money. Many Greeks worry that at least some of their hard-earned cash could vanish even under the best outcome of renewed negotiations between the country’s leaders and its creditors over a bailout package.Even those who have hoarded cash in fear that the value of the euro will plummet are panicking that a return to the drachma will leave them stranded with the wrong currency.
So as any intelligent and fashionable woman would do in a time of crisis, 48-year-old Sophia Marcoulakis is converting her cash into something more stable: Designer Handbags and Accessories. Basically in Greece, Chanel is more valuable than cash.
It’s a luxury the mother of two never would have allowed herself before the banks shut down. But now she considers it an investment, a tangible possession that the government cannot take away.“You have a feeling that money has lost its value,” said Marcoulakis, a corporate lawyer. “It’s just a number.” Designer Handbags are something that do not lose their value. Brands such as Chanel, Louis Vuitton, Hermes and others and considered an investment that can be re sold for cash when the economy recovers. These designer bags are assets that people all over the world are intrigued by, technology makes it easy to sell items internationally and essentially protect your money in a way that is unique and effective. Who would have thought Chanel could save your financial stability?
Residents began pulling their money out of Greek banks in January after the leftist political party Syriza won parliamentary elections and swept into office with promises to stand firm against the harsh spending cuts demanded by Greece’s creditors in return for fresh aid. The showdown between Athens and the rest of Europe intensified at the end of last month, and banks enacted strict limits on withdrawals and transfers abroad. Electronic debit transactions are still allowed, but some stores have stopped accepting them. Credit card purchases on Amazon and iTunes are prohibited. Greeks can withdraw only 60 euros a day in cash from banks, the equivalent of about $67.
The question for many Greeks these days becomes whether to spend money now or watch it vanish into thin air later. For Chris Dako, the answer is simple: Buy now. Since the bank closures, the 25-year-old waiter has been paid in cash daily. And on Tuesday, he planned to turn that money into a new pair of shoes. “What shoes?” he asked with a smile. “The best.” Specifically, running sneakers that will set him back quite a few euros. He intends to spend quite a bit of money to invest in something that is worth while. .“If they want to take some of my money, let me spend it first,” Dako said.
Before the financial freeze in Greece, customers lined up at Nikias in the wealthy Kolonaki neighborhood of Athens to sell their jewels and Rolex watches. But the shop’s owner said that over the past week he has had 20 to 30 calls from people interested in the opposite exchange. The owner, who declined to give his name, said the callers wanted to buy gold coins and kilobars — the most expensive items his store carries. But he no longer accepts electronic bank transfers, because he is worried about a potential loss on deposits.“Then we would be the ones to have the problem,” he said.So his shop is stuck in a Catch-22: He will take only cash, but none of his customers can access enough to purchase his goods. “Everyone is on hold,” he said.
Source: Mui, Ylan. “In Greece, Chanel Becomes More Valuable than Cash.” Washington Post. The Washington Post, 7 July 2015. Web. 9 July 2015.
