Guest Post: Beware of Lurking North Africa & EU Bank Runs

Tyler Durden's picture

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Henry Chinaski's picture

ZH is perspicatious and prescient and I hope you are wrong this time.

SheepDog-One's picture

Scary part is Zerohedge articles are now coming true a few days out from post date.

Michael's picture

Here is what it will look like.

Wall Street Silver Gold Theft and World Economic Collapse

etrader's picture

GBP is also a proxy of  stealth bank runs in the arab lands.

Keep an eye on cable.

Quintus's picture

I had the same thought recently.  It'll be interesting to see how many prime and super-prime properties in central London are snapped up by buyers from the Middle East over the next few months.  There is a long history of them buying here, but I suspect a spike in such activity will be forthcoming shortly.

RobotTrader's picture

Investors are celebrating this news by buying steel stocks like NUE, tech stocks like APKT, and REITs like SPG.

SheepDog-One's picture

By 'investors' I guess you mean Bernanke?

Hephasteus's picture

You know nothing of central bankers and their voodoo coporate law. It was a straw copy of Bernanke.

Seriously watch this. It'll terrify you. Listen to it till they get to the will the defendant please rise part.

4 minutes in

alien-IQ's picture

so clearly, the "stupid money" has entered the market.

Robot Traders Mom's picture

Sorry I couldn't make it home last night to help you with your homework. I was out turning tricks to keep the lights on.

RockyRacoon's picture

What do you mean by "this news"?   Looks like you wanted to post some ramping crap and picked any ZH article at random to do so.   "This news" is good and all investors are aware of it and they're buying what?   Get real dumbass.

The Count's picture

Hey, isn't that EXACTLY what happened when Paulson put a gun to Bush's head because BILLIONS were leaving the county each SECOND?


the not so mighty maximiza's picture

I like the pentagram in the 4th chart.  Saint Lucifer would be proud.

Sudden Debt's picture

 These deposits, if you will, do not have new debt issued behind them.


What stresses me out the most is NOBODY seems to know this!

I can't find it anywhere in EU newspapers of financial sites!

Is there proof from a government site that this is so?


Eternal Student's picture

It's not worth being stressed out over this. The sooner that you accept the fact that blogs are the new, real Journalism, and that the MSM are just propaganda rags, the better off life is.

Circlehook's picture

A shell game any hustler could be proud of!

Azannoth's picture

"Hungary, Poland, France, Bulgaria and Ireland and are taking over citizens' pension money to make up government budget shortfalls."

You'd think you'd have a Revolution the next day, .............. nope the sheeeeelple DON'T REVOLT!

Michael's picture

I like to think of them as normal people and the ones with elevated thought processes and critical thinking skills as, well, us.

DosZap's picture


The Frogs have no weapons, and the rest have shotguns if lucky to battle tanks.

gwar5's picture

Stealth bank runs have already been happening all along in I think.

I'm not the only one. Germany has sold out of safe deposit boxes for their PMs.


misterc's picture

That's not true. In the major cities you can still rent safe deposit boxes like at ProAurum.

robobbob's picture

absolutely, bring your valuables to the banks for easy centralized government collection  err, we mean protection.

Bearster's picture

Thans for a great article, Gordon.

Sudden Debt's picture

Hungary, Poland, France, Bulgaria and Ireland and are taking over citizens' pension money to make up government budget shortfalls.

I already said it last week, but in a evening interview with our financial minister, he said it to be the safest investments for PRIVATE (company) pension funds to invest their money is in GOVERNMENT BONDS!

In this way, the pensions funds will be PROTECTED when there would be a next stockmarket crash.


The private pension funds where to be forced to put their money in the bonds because "that market was so unpredictable as sometimes there is a large demand and the next day nothing" without any reason of course....



SumDumGuy's picture

A reminder on reserve ratio banking. sigh.

Kacey Jordan, the porn star who partied with Charlie before he was rushed to the hospital, went to cashthe $30,000 check Charlie gave her right after she left his house that fateful day ... only the bank didn't have enough cash on hand. So she walked out with $8,000 in cash and a check for the remaining $22,000. 

She went back to the bank yesterday (see above) and got the remaining $22K. - TMZ.

Clint Liquor's picture

It's a sad day in America when a Ho can't get paid!

Problem Is's picture

Nice nose Clint... Can you put one of those on Cramer the Clown for me?

lemonobrien's picture

Yes its all fake; my wife cashed out 45k from different accounts, we still have a teller check for 18k.

The worst is, when they do give you cash; it all in hundreds, lots of 20s.

Oh regional Indian's picture

So true. At every level, what is obvious is improbable or fake and what is hidden is possible and very real. I like the perilous serpent picture. Apt.

I've been telling everyone I know to get money out of banks and into assets as sensibly as they can. The public is always the one left holding the short end of the straw.

An electronic run on banks. Virtual apocalypse for a virtual world.


bmwmc's picture

Problem is really no problem.  Just print as much currency to paper over anything that even looks like mass insolvency.  You see there's really no problem at all.  Buy Buy Buy!

alien-IQ's picture

A country where the banks refuse to mark their holdings to market value...hmmm....where have I heard this before?

RobotTrader's picture

I doubt there are going to be any bank runs in Europe.

Not when HSBC are running towards the highs.


And European stocks are sitting at 2-year highs:

alien-IQ's picture

but wouldn't that be the best time to do it? when the bank is flush, fat and happy?

that's why most muggings take place on's payday.

dwdollar's picture

My wife works as a teller at a credit union.  They barely have enough cash for one day worth of transactions.  Often, they run out of $100s.  Good luck during a bank run suckers.  She's getting out our cash (what little we have) before she serves anyone else.  Most employees will.

GottaBKiddn's picture

The Bernank is stealing the money as we speak. Those who have their assets in "accounts" will one day soon look at their monitors and scream, "What happened?", but it will be too late. If you tell them now, they will simply say, "I'm keeping an eye on it".

"Say goodnight, Gracie"

Problem Is's picture

Excellent Information

Rating +5
Tyler: More Gordon T. Long...

less madhedgefundertrader, please...

pocomotion's picture


Problem Is posted More Gordon T. Long.


I second that....

flattrader's picture


More original content and analysis appreciated.

The unfortunate, predictable, ad nauseum homilies of some cut paste cut paste cut paste see here see this as I said contributors won't be missed either.

Eternal Student's picture

A very nice article. Thanks for posting it.

ConfusedIdiot's picture

TU, Gordon. The 2008 collapse was interrupted only because the MM funds were of a sudden -- US Government guaranteed. IOW as most corporate MM holders had no better on or off shore place to move the funds than dollar denominated guaranteed instruments like treasuries  , leaving the funds on deposit as MM made sense. Gordon highlights the midnight terror of global corporate CFO's not believing that even an EU guarantee of all EU bank deposits would hold. At that point it would be a contest between the US Govt. guarantee of all banks vs. the EU.  If the US wins then the dollar would be instantly resucitated thus hammering the Fed's policy. In the end the Fed might as well just agree to back the EU - one world anyone?

Buck Johnson's picture

I still can't see how Germany didn't just walk from the Euro when it came out about what Ireland did. And if Ireland did it what other capital around Europe is doing the same thing. When this whole game implodes it will be catastrophic.

props2009's picture

nuts. Well Greece CDS went over 300 bps. How many bank failure did u see?


US CDS is well below 100 (by the way it is higher than german CDS if it counts) and how many banks have failed? 150. 


CDS has nothing to do with bank failures nor bank runs. So please do not propagate fear psychosis esp without any kind of diligence.