Bank Run

GoldCore's picture

Buy Gold While You Still Can!

There’s an enormous and growing disconnect between the cash and physical markets for gold. This is exactly what we would expect to precede a major market-shaking event based on a physical gold shortage.

Tyler Durden's picture

"Tick... Tock"

8 years to fix the malfunctioning heart of the world’s financial and legal systems but nothing was actually done... and now the clock is ticking and there is hardly any time left. The number of red lights now blinking at us, largely ignored by those who are supposed to be flying this thing, is growing all the time. It is not that any one of them is a clear harbinger of the end but taken together they paint a dismal and coherent picture – of a system eating itself. The world in which and for which our old system was built is now changing around it in fundamental ways.

Tyler Durden's picture

The Danger Of Eliminating Cash

In the early days of central banking, one primary objective of the new system was to take ownership of the public's gold, so that in a crisis the public would be unable to withdraw it. Gold was to be replaced by fiat cash which could be issued by the central bank at will. This removed from the public the power to bring a bank down by withdrawing their property. A primary, if unspoken, objective of modern central banking is to do the same with fiat cash itself.

Pivotfarm's picture

Aug 19 - PBOC injects $48bn into China Development Bank

The central bank has injected new capital into the China Development Bank (CDB), which provides medium and long term financing to major national projects, in a bid to reinforce its capital adequacy.

Tyler Durden's picture

Greek Deposits Become Eligible For Bail-In On January 1, 2016

Earlier today an EU official was reported as saying that Greek banks will exclude all depositors from losses until the EU’s Bank Recovery and Resolution Directive rules go into effect on Jan. 1, 2016Needless to say this was vastly different to Dijsselbloem's blanket guarantee statement from Friday, and suggests that depositors will indeed be bailed-in, but not right now: only after BRRD rules come in place on the first day of 2016.

Tyler Durden's picture

Varoufakis: "In 1967 There Were The Tanks And In 2015 There Were The Banks"

"This was nothing but a coup. In 1967 there were the tanks and in 2015 there were the banks. But the result is the same in the sense of having overthrown the Government or having forced it to overthrow itself."

Tyler Durden's picture

The IMF Experts Flunk, Again

The IMF failures in Greece bring back vivid memories of the Asian Financial Crisis of 1997-98... As the Indonesian episode should teach us, the IMF’s management can be very political and often neither trustworthy nor competent. Greece offers yet another chapter.

Tyler Durden's picture

Greek Capital Controls To Remain For Months As Germany Pushes For Bail-In Of Large Greek Depositors

With every passing day that Greece maintains its capital controls, the already dire funding situations is getting even worse, as Greek bank NPLs are rising with every day in which there is no normal flow of credit within the economy. This has led to a massive bank funding catch-22: the longer capital controls persist, the less confidence in local banks there is, the longer the bank run (capped by the ECB's weekly ELA allotment), the greater the ultimate bail out cost, and the greater the haircut of not only equity and debt stakeholders but also depositors.

Tyler Durden's picture

Ongoing Greece Deposit Run Forces ECB To Boost Greek ELA Ceiling Yet Again

Despite the imploring of Greek bankers for Greeks to "take your money out of your chests and houses – which are not safe in any case – and deposit at banks," it appears the Greek bank deposit run continues. As The ECB just announced another €900 million increase in Emergency Liquidity Assistance, strongly suggesting that in the 2 days since the last increase, banks are once again insolvent facing a liquidity crunch as the "banks are trustworthy" propaganda falls on very deaf Greek ears.

Tyler Durden's picture

Greeks Laugh As Bankers Beg Depositors To Return Money

President of Greek Banks Association Louka Katseli appealed at the citizens to return their money to the banks. “Banks are absolutely trustworthy,” Katseli told Mega TV, “Let’s all help our economy... If you take your money out of your chests and houses – which are not safe in any case – and deposit at banks, this will enhance liquidity.” Katseli’s appeal triggered laughter among Greeks with one exclaiming “Ah sure! Banks will never see my money again, I prefer to buy tonnes of peanuts with it.”

Tyler Durden's picture

The Greek Economy Is Finished! A Quarter Of Firms Shifting Abroad

Capital controls imposed by the Greek government are taking a heavy toll on Greek businesses, according to a new report from Endeavour Greece. With over two-thirds of respondents reporting a "significant drop in revenues," and 1 in 9 firms forced to suspend production due to shortages of raw materials (unable to buy due to capital controls), the problems created by The Greek government's action seem asymmetric as almost a quarter (23%) of firms are now "planning to transfer their headquarters abroad for security, cashflow, and stability reasons."

Tyler Durden's picture

"Mark It Zero" National Bank Of Greece Plunges Towards New Lows

Remember when Greece was fixed... when The ECB extended its ELA to Greek banks and bridge loans were provided to repay The ECB? As we noted previously, it seems Greek banks are a sell at any price and today's continued crash in National Bank of Greece ADRs ahead of 'supposedly' a Greek bank re-opening on Monday, suggest "mark it zero" is coming soon to some knife-catchers' portfolios.

Tyler Durden's picture

Greek Banks Just Became A "Strong Sell" At Any Price

Even as Greek banks, severely depleted of cash and eligible collateral they can post with the ECB, stand to fight another day (and potentially face more withdrawals as soon as the Greek banks reopen supposedly on Monday) thanks to another €900 million liquidity infusion, investors in Greek bank shares will be less lucky: "to ensure a new bailout, investors in the country’s banks faced the prospect of their holdings being "wiped out" under the terms of a €25 billion recapitalization plan."

Tyler Durden's picture

Unsound Banking: Why Most Of The World’s Banks Are Headed For Collapse

As a result, the world’s economy is now based upon unsound banks dealing in unsound currencies. Both have degenerated considerably from their origins.

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