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Greek Household Bank Deposits Drop By $3.5 Billion In April, As The "Central Government" Withdraws Another $4.3 Billlion

Tyler Durden's picture




 

While Greece may or may not receive Bailout #2 "any minute now", Greek depositors refuse to wait for the resolution. In April, bank deposits declined for the 4th consecutive month according to the central bank, a 1.2% decline M/M. From Reuters: "Bank of Greece data showed deposits fell to 196.8 billion euros ($288.2 billion) from 199.2 billion in March. A shrinking deposit base has added to the strains of Greek banks, which have become reliant on ECB funding for their liquidity needs as access to wholesale funding remains mostly shut on sovereign debt concerns. Deposits have shrunk by about 13 billion euros since the beginning of the year. In 2010, they contracted by 29.1 billion euros or 12.2 percent." In addition to the Reuters breakdown, a look at the source data indicates that overall deposits held by "Domestic Residents" dropped by €5.4 billion: the culprit was the Central Government which withdrew €3.1 billion in April, bringing the total from €14.3 billion to €11.3 billion. As usual, the best real-time proxy, if not completely accurate, to gauge the flow of capital in/out of Greek banks is to keep an eye out on the EURCHF. Today, it is a little higher. Over the past year, it is, well, not...

The original data can be found here.

 

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Mon, 06/06/2011 - 09:54 | 1343083 mayhem_korner
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Microwave on high...

Mon, 06/06/2011 - 09:57 | 1343095 GetZeeGold
GetZeeGold's picture

 

So when do we get to the really bad news?

</sarc>

 

Mon, 06/06/2011 - 09:54 | 1343084 Josephine29
Josephine29's picture

The situation just seems to go from bad to worse. Yet the IMF/EU keep telling us everything is fine and dandy. What a bunch of fools! I was reading earlier about how bad things really are.

 

Hellenic Statistical Authority data indicate that the annual decline in sales in the January-May period came to 43.7 percent, as just 59,604 new cars have been registered this year against 105,911 in the same period in 2010.

http://t.co/ePnrjHY

 

That looks like an economy in a depression not one which is recovering...

 

Mon, 06/06/2011 - 09:54 | 1343085 Whatta
Whatta's picture

well hell, if you are always out protesting those Gawd awful austerity measures, and not at work, you's have to withdraw funds to buy your falafal and grape leaves. Nothing to do with insolvency of the banks or the government...

Mon, 06/06/2011 - 09:52 | 1343090 Badabing
Badabing's picture

run!

Mon, 06/06/2011 - 09:56 | 1343091 AvoidingTaxation
AvoidingTaxation's picture

W Switzerland!

Mon, 06/06/2011 - 09:59 | 1343103 BlackholeDivestment
BlackholeDivestment's picture

...how does one cross the Greek desert without a Camel? http://www.youtube.com/watch?v=ZBIGwtyqBhA

Mon, 06/06/2011 - 09:57 | 1343112 Josh Randall
Josh Randall's picture

The Greek populace 'Going to the mattresses' literally and figuratively

Mon, 06/06/2011 - 10:07 | 1343135 GetZeeGold
GetZeeGold's picture

 

Hey....how did you get by without getting junked?

 

Mon, 06/06/2011 - 09:59 | 1343118 Oh regional Indian
Oh regional Indian's picture

The phrase "Greece" the skids takes on a whole new meaning and spelling now.

ORi

http://aadivaahan.wordpress.com/2010/08/04/smorgasbord/

Mon, 06/06/2011 - 10:02 | 1343124 DK Delta
DK Delta's picture

thanks for this story

Mon, 06/06/2011 - 10:03 | 1343128 vxpatel
vxpatel's picture

Maybe deposits are 'shrinking'  b/c people that are unemployed/under employed need to spend their money to live...

Mon, 06/06/2011 - 10:22 | 1343165 Oh regional Indian
Oh regional Indian's picture

VX, one hears, jokes aside, that Greeks are truely mattress stuffers, so I really doubt that. I think this is a slow run.

Does anyone know if there are with-drawl limits at ATM's (as in any changes" or bank withdrawls in general? That will be a tell regarding panic.

Kind of like mera bharat mahaan, eh?

ORI

Mon, 06/06/2011 - 12:25 | 1343532 zuuuueri
zuuuueri's picture

Some banks have penalties for withdrawing more than in a month, etc, yes. I don't think most greek depositors have balances that would be relevant to those penalties. People are drawing down on savings to cover the bills.  Yes, people might keep a bit of extra cash out of the bank than in, but that isn't quite a run yet.. some people never learn til it's too late.

It doesn't look like a run (yet) to me. But others are making such claims in the media in greece, too. It might turn into a run if people talk about it enough... you know how that sort of thing works.

One thing that might contribute to encouraging people to not just yank all their money out is the ban on cash transactions over 1500 eur that went into force (for what that's worth) the beginning of this year. there is hardly a more blatant attempt to force people into the bankers' monopoly, now is there? 

Yes, greeks are typically savers. The hardest and most respected form of savings is gold sovereigns. Most newspapers for example quote the buy/sell on sovereigns, specifically sovereigns. Other forms of gold are encountered, but none of them are as respected or get such a premium as sovereigns. Until it was outlawed in the end of the '50s, almost all serious transactions were priced in sovereigns and converted to drachmas at the going rate (ownership and trade in gold was not outlawed, but gold clause contracts and quoting prices in anything other than DR was).

 

 

Mon, 06/06/2011 - 10:07 | 1343137 zuuuueri
zuuuueri's picture

This not people pulling out a few extra eurobux just to have them out of the banks- this is much more due to people drawing down savings to keep paying the bills, especially the ones one can't easily change like mortgages (for all the suckers that bought housing in the absurd market since greece went over to the euro)

A lot of the weak side of the wage-earning 'middle class' in greece has been hit hard by the last couple years. They were comfortable enough before 2008 and even set aside asome savings. They got suckered into buying apartments or maybe even houses during the past 7 or 8 years property price boom, and they have already lost their first batch of savings seven to ten years back with a ludicrously, comically, surreally manipulated stock market. They're not yet 100% against the wall, so theyre making payments and cutting expenses where they can, and drawing down savings. 

 

 

Mon, 06/06/2011 - 10:25 | 1343169 Silvarouvres
Silvarouvres's picture

http://uk.reuters.com/article/2011/06/06/uk-greece-pensions-idUKTRE75514...

4500 dead civil servants are still receiving pensions from the Greek Govt

2 thoughts:

-Greek administration really, really sucks

-Greek pensions suck really too: less than 4000 Euro per year

 

Mon, 06/06/2011 - 10:47 | 1343228 zuuuueri
zuuuueri's picture

yes on both counts. In most cases these systems are totally manual - hand written records kept on paper in an environment full of incompetent, poorly paid people who have their jobs for political reasons, never had the inclination to do a decent job to begin with, certainly dont get paid enough to start caring.. which covers the second count- yes, the pay really does suck. full time salaries below 1k a month are very common. Once one breaks over the 1300-1500 a month zone one is already getting into the narrower eng of the histogram. 2k a month is already a rather high ranking functionary or official. A general in the army gets about 3 to 3.5k a month. Pensions are maybe 50-60% of salaries for these folks.

 

It's hard to feel sorry for them, though, because somewhere between 90 and 98 percent of them are completely useless.

 

 

It's hard for someone from western europe or even the US to really comprehend just how mindbendingly out of touch with reality the greek bureacracy is. Even a lot of 'third world' countries are much better run in this regard. This is also the secret weapon (not planned this way but it'll do) against the oppression of a bankster conquest of the country. The system is so suffocated on its own feces that it can't meaningfully enforce these draconian measures very well either. 

 

 

Mon, 06/06/2011 - 12:01 | 1343451 Zero Debt
Zero Debt's picture

The other thing is that most bankers don't even know enough greek letters to read it.

I wonder if Linda Green has a relative in Greece...

Mon, 06/06/2011 - 10:40 | 1343219 poydras
poydras's picture

The ultimate deadbeat move is to shuffle as much money off to Switzerland, return to a devalued drachma, and restate all loans in the new currency.

Greece has an ideal defense of being a long-term, serial defaulter.

Mon, 06/06/2011 - 10:45 | 1343227 Curtis LeMay
Curtis LeMay's picture

Things getting real interesting in Spain, now that Zapo's socialists got their arses handed to them in elections a few days ago and the newly elected political leaders are getting a look at the books... 

= = = = =

‘Bankrupt’ claim heightens Spanish debt fears

June 5, 2011

http://www.ft.com/intl/cms/s/0/33ba454e-8f8f-11e0-954d-00144feab49a.html...

The central Spanish region of Castilla-La Mancha is “totally bankrupt”, according to the incoming administration of the rightwing Popular party (PP), an accusation that will deepen concerns about Spain’s budget deficit.

The claim has prompted angry denials from the Socialist government.

Spain’s 17 autonomous regions and its more than 8,000 municipalities, with €150bn ($220bn) of accumulated debt between them, have become the latest worry for investors in Spain and its sovereign bonds.

Although the amount is less than a quarter of total public sector debt, regional debt has doubled since 2008. The 17 regions collectively exceeded official budget deficit limits in 2010, and appear likely to do so again this year despite repeated demands for compliance from the central government.

= = = = =

And from Bloomberg

Spanish Parties Clash Over Charges of Regional Finance ‘Chaos’

June 6, 2011

Catalan Deficit [which includes Barcelona...]

http://www.bloomberg.com/news/2011-06-06/spanish-parties-clash-over-char...

The elections in Catalonia last year revealed a 2010 budget deficit that was 60 percent larger than the previous government had acknowledged, leading some investors to expect similar revisions after the elections in 13 other regions on May 22. Castilla-La Mancha had the largest shortfall in the country last year, at 6.5 percent of its gross domestic product and the PP’s leader in the region, Maria Dolores de Cospedal, had said before the elections that the region was “practically bankrupt.”

= = = = =

That leaves 13 other regions to go. The truth must win out and reveal the utter disaster of Spain's finances. Entire regions of Spain bankrupt? You betya...

 

Mon, 06/06/2011 - 11:18 | 1343337 Oh regional Indian
Oh regional Indian's picture

Thanks Curtis. Nice news and, Spain is it, eh? The doorway to hell for Europe.

Interesting to see what will be triggered first, youth unrest, immigrant unrest or severe auserity.

ORI

Mon, 06/06/2011 - 10:50 | 1343254 djsmps
djsmps's picture

The Greek bailout news changes as often as the source of the e coli.

Mon, 06/06/2011 - 10:55 | 1343264 nathan1234
nathan1234's picture

If I were Greek and i feel Greece will default , I would rather draw out my money in euros and get a better exchange rate for my future drachmas.

 

Mon, 06/06/2011 - 11:01 | 1343285 Yancey Ward
Yancey Ward's picture

I doubt the common Greek will be allowed to escape the currency change if it occurs.  It is likely that any deposit in a foreign Euro country with a Greek address will be confiscated as a debt repayment.

Mon, 06/06/2011 - 11:23 | 1343334 THE DORK OF CORK
THE DORK OF CORK's picture

How much of this decline is the result of non creation of new loans/deposits and how much is simply people holding  physical cash rather then deposits ?

Mon, 06/06/2011 - 12:09 | 1343479 White.Star.Line
White.Star.Line's picture

I have a sneaking suspicion that real deposits are draining out the back doors of every country on the planet, while leaving debt-backed 1s and 0s in their place.

Mon, 06/06/2011 - 12:11 | 1343498 Yardfarmer
Yardfarmer's picture

could it be that the corporate media spotlight presently focused so intensely and inexorably on the Eurozone disaster serves also as a convenient misdirection from the colossal economic earthquake facing the largest world economy. it's easy to forget that the US percentage of debt to GDP is remarkably similar to these once sovereign nations now being picked apart by the purveyors of CDS and other financial derivative instruments, and we can already discern in rather bold relief the no longer vague outlines of ultimate US national, state and municipal insolvency. a financial system geared to maximizing profits through asset stripping and corporate plunder has been the dominant economic paradigm for decades internationally. obviously the dominant financial sector decoupled from any real relation to the exchange of goods and services, with a present share of GDP in the range of 40%, the obscene manipulated rigged bond sales by the Federal Reserve, and the massive expropriative consolidation of equities in the hands of a few megalithic corporate and financial interests are all designed to undermine and destroy economies world wide in a phased transition to centralized control by the financial elites and oligarchs. no wonder there is such a pervasive flight of capital from banks, and equities and given the growing lack of real confidence in such institutions, it will soon become the norm rather than the exception.  anticipating the kind of social upheaval that is being experienced across the Eurozone and stealthily and not so incrementally afflicting our own decimated economy. my own personal assets are in cash and precious metals. i have left the urban environment i have lived in for the past 50 years and am presently in a location where i had to challenge a rattlesnake to pick some excellent Kale from my green house. extreme times demand extreme measures.  

Mon, 06/06/2011 - 14:49 | 1344008 Herbert_guthrie
Herbert_guthrie's picture

Good job battling the rattlers!

I had to empty out yellowjacket nests and poison Ivy from my greenhouse.

Extreme times indeed, at least for those paying attention...... what few there are.........

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