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Bank Deposits Decline Across Europe In January

Submitted by Tyler Durden on 02/27/2013 12:42 -0400

There was much press coverage of the December jump in European bank deposits: a veritable litany of pundits said that it was an indication of the recovery in the European financial system, how faith in the banking system is coming back, and that European consumers are so wealthy they actually have excess cash they can deposit at their bank. Perhaps it is not very surprising, then, that we have yet to hear a peep about the fact that overnight the ECB reported that deposits at all key core and peripheral European countries declined. Wait, we know: "it's seasonal."

Source: Goldman Sachs

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Wed, 02/27/2013 - 12:44 | 3282097 kliguy38

I thought it was fixed....oh wait ....that's why Jamie Dimon is rich.

Wed, 02/27/2013 - 12:52 | 3282131 camaro68ss

why the rats jumpin ship? I thought everything was rainbows and unicorns shitting skittles, in a land filled with fluffy clouds and rays of sunshine?

Wed, 02/27/2013 - 12:46 | 3282107 Cdad

Yes, once seasonally adjusted, these bank draw downs become depositor surges. Well, that and the Bernank pumping money into Euro banks via POMO dollars.

All is well...and open the pod bay door, Hal.

Wed, 02/27/2013 - 12:47 | 3282110 Shaten

so which country shows an increase in deposits of that amount, or did it all go into gold?

Wed, 02/27/2013 - 12:59 | 3282115 hedgeless_horseman

ECB bank reserves are 1%.

"...the system of reserve requirements is not needed to the same extent as under normal circumstances to steer money market conditions."

When would Europeans ever want to get more than 1% of their money out of the bank? Are reserves more likely to be needed under normal circumstances, or abnormal circumstances?

Historical changes reserve ratios:

Country                   1968    1978    1988    1998
United Kingdom         20.5     15.9     5.0      3.1
Turkey                     58.3     62.7     30.8    18.0
Germany                  19.0     19.3      17.2   11.9
United States            12.3     10.1       8.5   10.3
India                           3         6       10     10-11

2011 2012

Europe (ECB) 2 1

Draghian philosophy states:

There can be no more bank runs;
Thus, there will be no more bank runs.
Party on, Wayne!
Party on, Garth!

Wed, 02/27/2013 - 12:48 | 3282118 mayhem_korner

The Black Horse is saddled up and ready to ride.

Wed, 02/27/2013 - 12:49 | 3282120 Edward Fiatski

Wait till Spanish Bankia blows up tomorrow. HO-LI-DAY!

Wed, 02/27/2013 - 12:51 | 3282121 Abraxas

This charade goes on, and on, and on ... we're all just a bunch of lemmings with a short-term memory of 2 seconds. In the meantime we're being drained, financially, morally, politically, economically and spiritually.

Wed, 02/27/2013 - 12:56 | 3282138 LongSoupLine

Who gives a fuck... ES is full fucking asspump retard and fucking Dow over 14k fucking again. Fuck you FRBNY, you fucking treasonous fucking bank propping fucking shit eating assholes. Fucking jump in front of a subway train you fucking pure evil crooked fuckers.

Wed, 02/27/2013 - 13:27 | 3282168 Ham-bone

LSL - you take all this too serious. It's just life. Good and evil dancing. Evil doing what it does...always has done, always will do. Pendulum swings to allow greater and lesser evil...unfortunately typically the only counterweight to evil are opposing evils. "the big lie" is everything and everything is propaganda. Complete capture. Markets signify nothing but their rule of the game.

That's why the only way to win the game is not to play the game (as much as possible). One can never win a game which "they" define what is "money", "law or justice", "success or achievement"...etc.

Do what you can do, be ready for what you may need to do, and find peace in the meantime (yes, I realize I'm really talking to myself).

Wed, 02/27/2013 - 14:11 | 3282429 geewhiz

Ditto on that. And if u really need to do some business look for your place in the newly emerging parallel underground economy that is enabled by peer to peer currencies. Don't worry about the sheeple they will either find thier way home or to the slaughterhouse, its times like where independent thinking comes in useful.

Wed, 02/27/2013 - 13:03 | 3282172 Dr. Engali

I'm pretty sure that a person needs to have money first before they can make a deposit.

Wed, 02/27/2013 - 13:27 | 3282245 Volaille de Bresse

"and that European consumers are so wealthy they actually have excess cash they can deposit at their bank"

Ah ah!

Wed, 02/27/2013 - 16:53 | 3283161 Super Broccoli

yeah i'm just so rich right now i can't think of a better way to screw my money than depositing it in one of those bankrupted banks !

Wed, 02/27/2013 - 13:30 | 3282255 TruthInSunshine

The simple answer is that Greeks, Spaniards, Italians, French, etc. are backing up the truck and purchasing CRM, PCLN, ZNGA, LULU, AMZN, etc. etc. etc.

Boooooyah!

Wed, 02/27/2013 - 13:32 | 3282265 Pairadimes

I'm sure it's because they sent so much money to needy Northeasterners recovering from SuperDuper Worst-storm-of-the-millenium-in-the-last-six-months Sandy. It's almost embarrassing how much money flows into the U.S. every time we have a natural disaster. No, strike that. The amount of support we receive from our allies IS embarrassing.

Wed, 02/27/2013 - 13:44 | 3282301 Mercury