Greeks Turn to Gold on Bank Bail-in and Drachma Risks

GoldCore's picture

The Greek stock market is down over 36% year to date; the risk of global contagion in the event of a Greek exit is very real. Ordinarily such a crisis would require a massive coordinated effort from global stakeholders, perhaps directed by the IMF or some other pan-national financial body. But not in this case; the rhetoric is nationally-based and biased without unity of purpose across finance ministries. Recent official soundings from the UK and German governments saying that exposure to Greece is limited only underscores the depth of denial, ignorance and lack of consensus that exists within the euro area. A Greek exit from the euro would profoundly weaken the euro experiment and create a dangerous precedent for all future crises in the region.

The European economy is the largest middle class economy in the world. With over 400 million relatively affluent consumers it represents a massive portion of the net global economy and as such a breakup of part of it would be felt across the world in credit spreads and capital decisions for years to come. This would not have been because of Greek exit, but rather because of the inability of the authorities to manage the crisis as risks initially built up, then as bail outs were designed and implemented and then as these efforts surely failed.

We are witnesses to an epic failure of planning, statecraft and social justice. Regardless of where your politics lie, these elements are critical for a modern globally connected economy to function.

Sadly, the geopolitical backdrop is one of suspicion and hostility in the form of a festering proxy war between western and Russian interests in Ukraine and regional crisis and humanitarian catastrophe in the middle east as Syria and Iraq descend into stateless anarchy. These factors reduce the odds of a successful solution in Greece being found in time.

The share value of Greek banks cratered up to 30% Wednesday alone, before pulling back on Thursday as fears grew that the new government may not intend to soften their stance now that they are in office.

In what is probably the worst performance for the sector on record, the four major banks – Bank of Piraeus, Alpha Bank, National Bank of Greece and Eurobank – all closed more than 25% lower. Athens stock exchange closed 6.4% lower.

It marks an acceleration of the losses incurred over Monday and Tuesday in the immediate aftermath of the Syriza victory. From London’s Telegraph.

Greece’s banks have lost almost 40pc of their value in the three days since Syriza ascended to power in Sunday’s election as the dual threats of a bank run and the loss of support from the European Central Bank threaten a liquidity squeeze.

Forbes list five main causes for the collapse:

  1. Deposit flight has accelerated.
  2. ECB liquidity could be cut off.
  3. Potential public and private debt restructuring.
  4. Low profitability.
  5. Reliance on deferred tax assets – Forbes explains it as an over-reliance by Greek banks on liquidity from the state.

Greek banks are hemorrhaging deposits. The telegraph reports, “Banks also risk a repeat of the deposit flight seen in 2012. Up to €8bn of private sector deposits has been pulled out of Greek banks since November, according to Moody’s”, adding that bank deposits have fallen 5% in the last two months.

The Financial Times paints an even more dramatic picture of bank runs and capital flight.

The real danger is that the Greeks themselves lose confidence. There are tentative signs that money is again being sent abroad, as it was in mid-2012. Nikolaos Panigirtzoglou at JPMorgan points out that €350m was sent from Greece to Luxembourg money funds since the start of last week. Extrapolating to all cash flight, he estimates as much as a 10th of Greek deposits may have left already this year. If a Greek bank panic develops it will strengthen the German hand, and make negotiations that much harder.

In the event of any or all of these possibilities, gold and silver bullion will perform well as a currency of last resort.

Greek coin and bullion dealers with whom GoldCore spoke, confirmed an increase in demand for gold coins and bars in recent weeks and since the election.

GoldCore have Greek clients both in Greece and living in the UK and throughout the world. We have seen a definite upsurge in interest, inquiries and demand since the election last Sunday.

Concerns about bank holidays and also a return to the drachma have returned and Greeks are looking for ways to prevent further destruction of their wealth.

For Greeks, Storage in Switzerland remains a favoured way of owning gold.

The comprehensive guide to bail-ins: Protecting Your Savings in the Coming Bail-in Era

PRICE UPDATE

Today’s AM fix was USD 1,263.50, EUR 1,114.98 and GBP 837.42 per ounce.
Yesterday’s AM fix was USD 1.275.50, EUR 1,129.36 and GBP 842.25 per ounce.

Gold and silver both fell yesterday. Gold dropped 2.13% or $27.30, closing at $1,257.60/oz. Silver fell 5.78% or $1.04 and closed at $16.95/oz.

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jarana's picture

Everyone should own physical gold as everyone should own his own pair of shoes.

Time to get up.

John C Durham's picture

Greece is talking gold because they are going to join the BRICS nations and need, like the other BRICS needs (like S. Africa needs-ring any bells?) to come up with a gold contribution, to back up their soon to be restored currency so they can put it alongside BRICS loans in BRICS gold backed currency for Greek production. Greece is going to be putting their people to work, building that Russia-China financed gas pipeline from Turkey to the rest of Europe. Isn't it obvious? Real production is supposed to be the major backer of currency-something America has forgotten, its currency now mere "chips" (once gold backed, soon to be once oil backed) of a whorehouse casino financial system. 

Greece joins 140 other (very silent) nations in it's intention to join the BRICS gold backed International financial system. Think, Bretton-Woods without the single national advantage of a Dollar. (Remember Cold War was started by Truman's corporate & big bank backers & CIA/NSA lovers, because Russia wouldn't go with the single currency Dollar system? Would that Europe were so wise to "single currency", the Euro favoring Germany like the Dollar so long has favored the US.)

Anyway, the quoted Telegraph comment effectively runs protection for TBTF Swiss banks by pointing out how wonderful the Greek System of Swiss Gold Storage is. The Telegraph's Swiss banker friends, hold their breath that (like some other nations...ie, Germany who also gathers together Gold for a currently unknown good purpose...?)  Greeks won't make that call asking a big bank to return Greek Gold, like tomorrow Morning? Swiss storage of gold is only a good idea for the Swiss whose Euro position turn perhaps came because of a short Gold Position. (Is Deutsche Bank perhaps, the only bank to realize fixed Paper markets no longer count? Huge gold shorts already almost doubles actual delivered price in large order premiums? The TBTF banks are never going to cover their short real and paper positions.)

topshelfstuff's picture

I believe you got it right about Greece joining about 140 nations. Though I have posted these 3 links before, its likely many didn't take the time to read, though to me these are MUST READS. So this time I will paste some text. And Note the comment by Raoul Castro and weigh that with our very recent change in Policy re: Cuba, and also Obama's trip to India 2 weeks ago<<<another attempt to break this BRICets, G77+China, and now Russia, new system

This only makes sense if you understand that we are trying to break the G77 [Group of 77 and China] <<< google those words...now Russia invited. Yes, I'm looking for these countries to Hard-Peg to China's Yuan, at current Ex Rates, and for China to ReValue vs the USD to 2 to 1

 

http://panampost.com/marcela-estrada/2014/06/16/g77-developing-nations-denounce-us-imperialism-welcome-russia-china/

Developing Nations Denounce US Imperialism, Welcome Russia, China

Jun 16, 2014 Jun 16, 2014 - Over the weekend, the United Nation's Group of 77, joined by ... the Bolivian president publicly invited Russia to join the the bloc
== http://www.whiteoutpress.com/articles/2014/q2/133-g77-nations-vow-destroy-americas-new-world-order/

133 G77 Nations vow to destroy America’s New World Order

June 17, 2014 By Mark Wachtler June 17, 2014. Bolivia. (ONN) The American and European media are doing everything they can to black this news out. But it’s not going to stay a secret for long. As of this weekend, there’s a new New World Order on Earth and its enemy is the United States, the EU, the UN Security Council and the world’s shadow government led by the IMF and WTO. This new alliance of poor countries wouldn’t be much of a threat, except it includes two-thirds of the world’s nations including China and India.
It’s a sad day for the American people when their government and state-sponsored news industry blacks out such an important news story. Americans actually have to rely on outlets like the Havana Times in Cuba, The Times of India, and United Nations press releases. There’s a reason this news is being censored across the West. And it’s only the latest global news story over the past two weeks on this subject blacked out from the American people.  Read on to find out why.
 
Threats of America’s “second Vietnam”

 
Many of the government leaders in attendance took the opportunity to strike a blow against what they consider to be the biggest enemy of world peace, democracy and economic freedom - the United States. One leader even went as far as calling out President Obama by name and threatening the United States with a second Vietnam.
As reported by the Times of India, the G77 conference’s host this weekend - Bolivian President Evo Morales - threatened the United States and the American President telling the gathered heads of state, “If Mr. Obama keeps assailing the people of Venezuela, I am convinced that, faced with provocation and aggression, Venezuela and Latin America will be a second Vietnam for the United States. Let us defend democracy, natural resources, our sovereignty and our dignity.”   Cuba’s President Raul Castro was possibly the most pointed and focused in his remarks regarding the agenda of the participating countries. As reported by the Havana Times, Castro told the alliance of 133 nations, It is necessary to demand a new international financial and monetary order and fair commercial conditions for producers and importers from the guardians of capital, centered in the International Monetary Fund and the World Bank, and from the defenders of neoliberalism grouped in the World Trade Organization, which are attempting to divide us. Only unity will allow us to make our ample majority prevail.”

UN Civil War - dissolving the UN Security Council One of the more ambitious goals of the G77 and its 133 participating countries is the elimination of the United Nations Security Council. World leaders insist it is little more than a five-nation tyranny over the full UN body. With five permanent members of the UN Security Council having veto power over the rest, UN policies and actions have been dictated by those five countries - US, UK, Russia, France and China. Members of the G77 want the Security Council eliminated so the UN can go back to being a purely democratic body.
The Cuban leader went on to describe a global economic system run by American hypocrisy and financial corruption, “The principles of International Law and the postulates of the New International Economic Order are brazenly violated, concepts that attempt to legalize meddling are imposed, force is used and threats of force are made with impunity, the media are used to promote division.” == http://www.whiteoutpress.com/articles/2014/q2/russia-china-deals-move-us-dollar-closer-collapse/ June 9, 2014 June 9, 2014. St. Petersburg, Russia. (ONN) Here’s a fact you will occasionally hear on America’s investment cable channels - the US Dollar should be completely worthless right now. If not for decades of tradition, convenience and the threat of military annihilation, the Dollar would be worthless now and the US possibly collapsed into revolution. China and Russia just took steps to make that happen by doing what America’s experts promised they never would. Because if they did, it would spell doom for America.

John C Durham's picture

Why does the West believe it will "Win" when they operate againt the interests of 133+ nations? Why did such a plan ever evolve from the West that just "blacks out" everyone else's story? To the whole Earth, the West must appear dumb firstly, then arrogant and after further thought, the wise will be convinced that its point of view and plans are hateful, dangerous, of no value to anyone. The West's time has come and gone and been wasted. The West is now to be disgarded, avoided, untrusted for hundreds of years.

anonymice's picture

What we're seeing is limits being set to the European project. To the southeast you have Greece; where Europe changes into Turkey, the old Ottoman empire. To the northeast you have Ukraine, where Europe gives way to Russia, the successor to the USSR. To the east you have the UK: Airstrip One, where Europe merges in to the Anglo-Saxon empire.

In all three attempts to extend the European Union have met with failure, bloodshed or at least resistance. What you are seeing is frontiers being established at places where different cultures collide. I would expect the final outcome to be Cameron's successor leaving the EU; the Greeks leaving the euro; and Ukraine returning to the Russian sphere of influence. I would also expect the remaining Europe to be more tightly-knit.

XXL66's picture

People are not buying gold, when people start buying gold, there is no gold left.

Jano's picture

the author even does not know, how many inhabitants has the EU, he writes over 400m yes, more, than 400m it is over 500m, but 25% plus or minus does not matter for him.
how can such a chap be a gold expert?

Bombastard's picture

It's an estimate of wealthy consumers. In other words very very big and very important to global economy.

numapepi's picture

Didn't he qualify it by saying relatively affluent middle class? Presumably not everyone in Europe is middle class...

bardot63's picture

Once you put money in a bank, it's their money, not yours, by longtime, settled law.  You become legally an unsecured creditor.  Most folks don't know this.  That's why there is FDIC ins.  But FDIC is bankrupt.  And FDIC ruled in Dec 2012 it can change the insurance limits anytime it wants and it can lump all accounts into one account---so your different accounts at different banks are not safe at this very moment, despite what CNBC and WSJ tell you. And FDIC ruled it doesn't have to tell you what the rules changes are. 

https://www.fdic.gov/about/srac/2012/gsifi.pdf

Link takes you to 18 page FDIC blueprint on how Fed Gov will save itself during next meltdown, which FedGov says will be global and systemic.  Note this plan is also found on Bank of England's website as well as FDIC.   If you don't want to read the whole 18 pages, I'll tell you what it says.  It says fuck you.

cifo's picture

If every Greek would buy 2oz/gold, that would be the worldwide gold production for the whole year.

Now, if the Germans, French and other Europeans would do the same, then we're talking gold going to $20k/oz.

litemine's picture

+1

Then Individuals could hold a wealth, taking the Paper Trades away that Criminal Bankers use to Rob Everyone's Savings. They do it for the Elite not caring how that hurts You and Me. I think a major revolte is coming, just don't know if the Bankers or their Minnions will force a War before  we take back Control though our Governments or Not. Also the Fed and the Bankers that own the Fed with their threats about collapsing America have only taking MOAR Control over the System. The fallout will backfire on them as they will not have anywhere to hide so opportunities will arise for those of us that will suffer their Greed.

Spungo's picture

I'm starting to think GoldCore isn't the poster's real name

disabledvet's picture

Yeah, me too.

 

"The bamboozler speaks."

 

I mean seriously "then they all run to Switzerland"?

 

This has been true for EIGHT HUNDRED YEARS.

 

Not really news....and no I don't want your Swiss francs either.

 

How are "bail ins" different from a full scale nationalization?

 

Sounds to me yet again that cash is King...and King Dollar is still King of Cash.

 

Nothing says "shipping" like Greece so I'm not too worried about their gold.  That stuff is LONG GONE by now.

 

Probably Malta....certainly not Switzerland.

RaceToTheBottom's picture

Greek Banking salaries should go up.  That was what saved the US...

Watson's picture

>>>
Greek coin and bullion dealers with whom GoldCore spoke, confirmed an increase in demand for gold coins and bars in recent weeks and since the election.
<<<

Maybe they did.

But, to me, a rather more sensible approach for the average Greek citizen would be:
1. Remove any EUR you have on deposit with _any_ bank (Greek or not) that you access from within Greek borders;
2. Decide whether or not you think Germany will continue using EUR: If you think it will, go to 3., if you think it won't, buy CHF notes with your EUR-notes;
3. Whatever notes are the result of 1. and 2., bury them somewhere.

If you buy gold you are paying a price that is (approx USD 1,200) 1/3 down from high of bubble (USD 1,800).
Since bubbles usually give up about 2/3, if you really want the stuff don't think of buying until USD 600.
At the very least, don't buy any gold until you see central banks (who were the last big buyers in the run up to the top) selling the stuff.

In passing, the only thing that continues to surprise me is that there are _any_ voluntarily held deposits within the Greek banking system.

Watson

cifo's picture

"Since bubbles usually give up about 2/3, if you really want the stuff don't think of buying until USD 600."

Watson, you are obviously joking.

At US$S600/oz, there would be no gold mined by any company. Remember, there is no Saudi Arabia of gold just yet.


Watson's picture

1. Gold spent very many years between USD 250 - 450 (since the last bubble in the early 1980's, in fact).
Since the recent price rise wasn't accompanied by Weimar-style inflation, the parabolic blow-off is just what ity looks like: a bubble. Bubbles always burst.

2. Lack of new gold supply is a small thing compared to the overhang of gold bought at the top by central banks.
Central banks pay 100% with a zero cost of funds, so they can't be forced out of losing positions like most traders, but their mark-to-market losses are already enormous. One or more might fear further price falls (in terms of keeping their jobs) and sell out. Those sales would large compared to (lack of) new supply effects.

The real problem for the world is an enormous amount of completely unaffordable debt.
To me, the investment for such an environment is cash, held secretly, in small notes, outside any banking system.

Watson

80 years are up's picture

I think it is time to weigh in. While I agree with much what you write, I think you ignore the fact the we are nearing the 80 year crash.  Fewer and fewer who buy gold will let go of it as the end game becomes more clearly unavoidable.  That should keep gold from the more normal bubble scenario you refer to. I still tend to see it as going down as the bankers probably wish it would and usually get what they wish for.  They must always win in the end as humanity can survive with millions of starving people but it can not survie without an international banking system. Life isnt fair but we all depend on an ordered financial system of some sort - even with a personal gold horde.  I for my part am paying down all debt before piling up gold.

Watson's picture

The gold bubble has already happened, and it has already burst.
Look at the upward swing from 2006, compared to the amount of inflation: a classic parabolic blow-off.
The only reason the current price is not much lower is because the last big buyers were central banks (for details see my earlier post).

>>>
I for my part am paying down all debt before piling up gold.
<<<
A very sensible strategy, but which also demonstrates my point: you want to pay down your debts rather than buy _even_ gold. Only a while ago people would use any available cash flow to justify _increasing_ their debt to buy assets. That has changed. If the world wants to put 'paying down debt' first, then the thing disappearing is cash, and that is why it will be king.

Watson

hendrik1730's picture

Watson, "cash" is paper. It can be printed at will, intrinsic value is ZIP ( zero ). The reason why gold was so "cheap" for many years is because the central banks ( worldwide ) have been selling physical gold to close the budget deficits. Gold mining cost today is 1200+ US$/ounce - the actual ( suppressed ) COMEX price. Demand is surpassing production by at least 30% - and the price is only "slowly" rising.

You know, all central banks in the west have been window dressing for 40 years ( after Nixon blew up the Bretton Woods agreements ) but there is an end to every Ponzi scheme ... and fiat US$, Euro's, Yen, Pounds and the like are just sitting ducks. It's not going to take a very long time for people to realise that the king has no clothes.

Watson's picture

Suppose Yellen tries the 'helicopter' of USD 10,000 to every US citizen.
Two things happen:
1. Spending doesn't increase that much (including spending on gold), because most try to pay down excessive debt;
2. (More important). The helicopter will never happen, because it would destroy the US gov bond market, and the US needs that market because it is addicted to spending more that it earns.

So although true that you can print at will at no cost, cash will never be distributed in the way needed to force up the gold price (actually used to bid up bonds (and, indirectly, stocks)).

>>>
...all central banks in the west have been window dressing for 40 years...
<<<
If this means you think there is some sort of world-wide anti-gold conspiracy among central banks, I can only say
that I don't think the average central bank, on its own, could conspire its way out of a paper bag.
The idea that a whole bunch of them could coordinate anything is absurd.
Occasionally they come to agreements to try to influence things after the market itself has moved hugely out of line.
The market realigns, and the CB's take the credit for 'influencing things' that would have happened anyway.

>>>
Gold mining cost today is 1200+
<<<
The production cost of anything is no guide as to what someone might pay for it.

And personally I would be nervous of a central bank that bought gold close to the top and thinks it might be smart to get out before the next 1/3 off. 2/3 off is not an extreme move for a burst bubble: tokyo did over 3/4, 40,000 -> 8,000.

Watson

Watson

cifo's picture

"The production cost of anything is no guide as to what someone might pay for it."

Why would a company spending $1200 to extract an ounce of gold sell you that ounce for $600 on a sustainable basis?

 

Watson's picture

If the company has already paid the USD 1,200 and received 1oz of gold it has two choices:
1. Sell the 1oz at whatever price it can get today (whether USD 1,800 or USD 600); or
2. Hold on to the gold in the hope the price is higher tomorrow, next week/month/year.

_But_ if the company has bills to pay (and if it doesn't pay goes out of business) the choice disappears and 1. has to be taken. The difference is between profit and cash flow.

In your scenario (USD 1,200 to receive 600), the situation isn't long-term sustainable but, depending on the amount of debt and unused borrowing lines available, might be sustainable for a limited period. And it is human nature to think that things will always get better over time.

Just shows the value of selling production forward...and not having a lot of debt.

All the EUR-bailout nonsense is about, at a country level, maintaining cash flow at the expense of increasing debt (which was already too large). It has only occurred because the chief provider (Germany/Merkel) is riven with WW2 guilt and so feels it has to create (and German taxpayers pay for) a United States of Europe. The dud debt is now off of German banks and with German taxpayers, so the next stage will be a write-off (at the expense of those taxpayers).

Watson

Watson's picture

>>>
...so the next stage will be a write-off (at the expense of those taxpayers).
<<<

Which is why the next big argument won't be between Germany and another corrupt Southern European disaster, but _much more likely_ between Germany and the Netherlands.
The Netherlands is solvent and won't like the idea of its own taxpayers also taking a hit for German dreams and angst.
It is also not nearly so sold on the idea of a United States of Europe - they want free trade, not so much the Euro-anthems, 'goodwill to all men', and a layer of unnecessary politicos in Brussels.
New Hanseatic League but no political unity.

Watson

cifo's picture

Watson, you are obviously a smart man who got my point, as I got yours.

We both know that there is a difference between distress selling (at any price, just because one is forced to), and sustainable business. If the mining company still borrows money to extract the second ounce of gold at $1200 after they sold the first one at $600, they won't be in business for longer, regardless of how optimistic they are. This would happen only because the management wants to compensate themselves (I exclude the incompetence scenario) regardless of the business sense.

Didn't we have an argument a few months ago about the price of gold being independent of the amount of gold mined?

disabledvet's picture

We also don't know what the "all in cost" for getting gold is.

 

If I'm a billionaire...and no I am not just for the record..."the all in cost" can be..."manageable.". Junior gold miners...mostly in Canada...have had a big run here.

The Canadian dollar has been annihilated...energy prices (not just oil and natural gas but more importantly coal) have collapsed.

 

That "all in cost" can get quite low.

 

Since the bulk of all trades in silver and gold are long and physical....

Joebloinvestor's picture

Hey Goldcore.

Get someone to confirm if any gold is left in the treasury.

It was pledged for the last bailout (fine print).

zipit's picture

THey have one monthto convert their bank accounts to Bitcoin and gold because by March they are going to get bailed-in HARD as punishment for revolting against the status quo.  

Creepy A. Cracker's picture

And then Bitcoin converts it to nothing... <poof!...>

stacking12321's picture

bitcoin has huge volatility, it's not a good store of value like gold is, but it is a very promising technology (blockchain) that will disrupt the financial system once it matures.

plus, volatility is good for trading - 2 weeks ago i bought bitcoin at $202 and a week later i sold at $280, nice return!

 

babkjl's picture

I dont' understand why any Greeks put deposits in their banks. As an ordinary citizen I would hold it all in paper Euros, precious metals, food stockpiles, barter goods and cryptocurrencies. Anything but Greek bank digits. As a business owner, either I, or trusted relatives with time to travel, would hand deliver stacks of paper Euros to my suppliers. I would be keenly aware of what happened with the Cyprus bank holidays.

Augustus's picture

That is about what I was thinking, too.  When I read that deposits were down 5% iwas amazed that 95% could possibly still be in a Greek Bank.  Just open a Euro account across the border.  Hell, the Greeks sure were close observers to the Cyprus bail-in and asset freeze.  Sure, doing the daily money swap is a PITA, but not as big as Cyprus style solution is going to be.  And Cyprus still kept the Euro.  Go to Drachma and have another layer of cat hair to figure out.

PeaceLover's picture

I agree!
most moved it years ago.
<strong>I wonder why anyone puts trust in Banks In the USA or Mexico.</strong>
or anywhere they print money.

Reasons Paper money has little value anymore..
"Civil forfeiture laws"  Police take it at will?
Money Laundering laws??? What does that mean.. you make save or get lots of money and now you can't have it???
You can't carry more than 10k across a border.

 

Questions I have is why doesn't anyone name the Politicians that allowed those laws to start with?

My 12yr old made me laugh just now she goes

The gov doesn't like any competition.... for their dirty money.

 

http://ij.org/policing-for-profit-the-abuse-of-civil-asset-forfeiture-4

 

My son just told me that.. someone apparently 1099d  him for a large sum(incorrectly).. years ago in California.
California pulled over 40K out of his account and the bank manager didn't even call him.
He said he found out when people called him to say your $9,000 check check is no good, I goes I think I have almost 50k in the account got to be good.
Calls the bank in California get to the top manager she goes.. read the deposit rules we don't tell you when the goverment takes your cash we don't even have a form to give you. Your problem apparently it happens all the time!
California state tax board I guess doesn't even send out certified letters.
They said they just send letter to you last know address.. He didn't have a physical address in over 8yr's.
They also didn't have any documentation to prove they sent a letter.
Told him it was his problem.

bardot63's picture

Once you put money in a bank, it's their money, not yours, by longtime, settled law.  You become an unsecured creditor.  Most folks don't know this.  That's why there is FDIC ins.  But FDIC is bankrupt.  And FDIC ruled in Dec 2012 it can change the insurance limits anytime it wants and it can lump all accounts into one account---so your different accounts at different banks is not safe at this very moment up to 250,000, despite what CNBC and WSJ tell you. And FDIC ruled it doesn't have to tell you what the rules changes are. 

https://www.fdic.gov/about/srac/2012/gsifi.pdf

Link takes you to 18 page FDIC blueprint on how Fed Gov will save itself during next meltdown, which FedGov says will be global and systemic.  If you don't want to read the whole 18 pages, I'll tell you what it says.  It says fuck you.

Socratic Dog's picture

Thanks for those last 2 sentences.  Absolutely classic comment.

Bunghole's picture

Guns, ammo, booze, cigarettes and anal lube

Son of Loki's picture
Faber: Dump Biotech, Short Central Banks, Buy Gold (WSJ Live-Video Interview)

 

http://finance.yahoo.com/video/faber-dump-biotech-short-central-05520366...

 

 

Creepy A. Cracker's picture

What did he say about anal lube?

StychoKiller's picture

"It's a trap!" (Oh wait, wrong guy!) :>D

Bossman1967's picture

Exactly I cant buy physical at those prices nor will I sell at them. The shits gonna hit the fan and I aplaud the Greeks for just getting thru it first if they have the balls to stay the course. I dont agree with the free shit but you have to start somewhere and when the USSA comes off the debt tit its gonna be psinfull for alot of people who are not paying attention. So now we wait for 2/28 to see if the greeks will be the first to tell the bankers to shove it

Cast Iron Skillet's picture

Right now, a lot of people are really happy that Syriza won, and that the new guys in Greek office look like they're going to really stick it to the banks. They've said that they will stop the privatization program and hire back a bunch of Government employees. Problem is, they haven't really said how the are going to pay for it. Are they really ready to exit the Euro with all that that entails? Lots of banks and companies will certainly go bankrupt if that were to come to pass. Will that make the Greek people better off? It isn't that clear to me. It irritates me that the Greek Gov seems to be taking an "I'm OK, you're not OK" stance - they see the cause of the problem as being outside Greece, which is completely, absolutely wrong. The Greeks took on too much debt, period. that's the root of the problem. It's their fault, they caused the problem for themselves. And even if the bailout was mostly oriented towards saving the European banks outside of Greece, that does not change the root cause of the problem.

Syriza should look within Greece for ways to solve their problems rather than cast blame on other countries.

The danger is that Syriza will fail to find a solution within Greece, which will result in Greeks being even worse off than they are today.

Creepy A. Cracker's picture

"Problem is, they haven't really said how the are going to pay for it."

They don't have to pay for it.  They are socialists.  They are special.  Just like Dear Leader Obama.

bluskyes's picture

It's not called panicing if you're first.