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Stealth Greek Bank Run Continues: ECB Hikes Emergency Lending To EUR 65 Billion
It would appear the un-sourced rumors of Greek banks having used up their Emergency line of credit with the ECB are true. Following a hastily put together conference calls this morning:
- *ECB RAISES GREECE ELA ALLOWANCE TO EU65BN: FAZ
Up from the previous EUR59.5 Billion. It appears the stealth bank run in Greece is showing no signs of slowing.
As Reuters repiorted yesterday,
The ECB moved Greek banks onto ELA last week after it ended a waiver on the quality of the nation’s debt it acceptsas collateral amid doubts that the newly elected government will conclude its aid program.
Greek banks have almost exhausted the 59.5 billion euros granted by the ECB, Skai Television reported yesterday, without saying how it got the information.
And so today, as Bloomberg reports,
*ECB DECIDED ON GREEK ELA ALLOWANCE IN TELEPHONE CONFERENCE: FAZ
The ECB’s Governing Council held a phone conference Thursday to raise the allowance for the Greek central bank to provide Emergency Liquidity Assistance by 5 billion euros, FAZ reports, without saying where it got the information.
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Black markets and barter are booming!
Fuck the ECB, IMF, and all the alphabet soup agencies of theft and fraud!!
Good for Bartertown, indeed.
Let's see... 60 billion spread over 11 million peeps is > 5000 per man, woman and child. Not bad at all. In the US, you'd be lucky to get 500/person.
Yes and the US $18T over 300M people is $60,000 per head. Good thing the world still beleives in Merican fiat.
Well at least it went up?
Our chocolate rations went up more negatively than we would like.
pods
Not one damn thing is changing in Greece unfortunately.
Looks like ZH reads are lower this morning. Maybe as stocks hit new all time highs people are starting to question their leader durrrrrrrrrrden.
You just reminded me of Japan in the 80s, when stocks were at 36k.
It's not like stawks will go down! Look at history. When an economy is this fuckin' strong, stawks rise like Ben's three inch cock looking at a boys running club.
ok, who told you it was 3 inches? barack or michelle ?
or Yellin..
Dude, you nailed it! We are all wet here at the 'Hedge'. Thanks for righting us before we went over the cliff. We owe you man!
Whatever, Ben. Don't you have Tel Aviv house hunting to do?
bruh you have to be some china wage paid government troll. your dear leaders must be pleased. how much for some koolaid?
Ben's right, Don't Fight the Fed, and for the same reasons, Greece has EU by the balls, the Fed must pick up the tab, beautiful thing, Go Greece.
Funny! Like your post ID B_B
Often thought what would have happened if Ben had not dropped rates to zero, started buying MBS' and Treasuries, and injected massive amounts of liquidity. With 6 1/2 years of history I still see it as the biggest kick the can down the road of all time.
What is seen now is the aftermath of what happens when there is massive intervention and liquidity injection at the top levels. So have fun picking one indicator: stocks, and running gleefully with it. Also feel free to ignore what has historically happened when valuations are stretched well beyond reason. The charts are out there. But I do think that this abnormality of risk measurement will continue for now. Not forever.
Are we not overdue for a MDB trollfest about now?
Easy there, Ben. TD has hoisted bloggers for less.
At least you've generated Votes. That's like VOM in Blogistan, and thus forgivable.
Allowance.
How nice & thanks. What are my chores again?
F that - I'm going to the basement to play my World of War video games -
NoVa
Bullish. Greeks will now invest all this money back in stocks.
Greece, the bad kid on the block, gets a raised allowance. That's really cute... Seems like the Troika parents are loosing control.
And the raised allowance is very good, Greeks will need every euro until they manage the bridging loan from Russia.
Just another five billion. That'll fix it.
"Just another five billion. "
That's coffee money for the people on Wall Street.
Goldman could buy Greece. Maybe they aready own it and are just letting the rest in the EU doing the the bailing.
I can't imagine there are many oligarchs left needing to cash out their own money. Presumably they're going back for next month's wage bill, a final fuck-you to the proles before the coup or the NATO carpet-bombing starts.
("When this is over they'll all be replaced with Chinese anyway. Fuck 'em.")
The Europeans will keep pushing the sham until it blows up.
Save face at any cost.
They'll all go down together, just the PIIGS will not do any of the work.
Not sure if I'm more amazed at how fragile a system they have built or at the lack of knowledge of that fragility.
Central banks continue their one consistent policy:
scramble, lie, print, etc.. to prevent a blow up TODAY. Tomorrow is the long distant future.
That bullshit strategy has worked for how many years now?
Well if you have Euros in you hand when Greece goes back to the Dracma...you will be much better off....as the Dracma will devalue overnight by 70% I bet....even though you get a 1 to 1 for the Euro......its a smart move for the people of Greece to pull their monies out before the bank holiday and the money shift...
It isn't even clear how the EU is going to expell Greece from the eurozone. In theory the Greek central bank can continue to print euros to infinity
Problem is, they have to get those euros out of the country and changed into something else, cause if the shit hits the fan, all those Euros stuffed in their mattress bank earning 0% interest can become worthless very very fast.
By doing this I would say the EU is going to cave.....this does not show as strength in the negociations to me
ECB will backstop Greek deposits, to do otherwise risks a loss of faith in other PIIGS banks and future bank runs. Greece truly has them by the balls.
They meet with the Russians and Chinese so that in the end they can be saved by the Fed without pissing off their European counterparts. Fed to EU: Hey, what did you expect us to do?
I wouldn't be surprised if the Greeks started using the U.S dollar, at the very least temporarily as a bridging currency if you will.
Bullshit, a local bank run would only show that if your country refuses to pay back its debt, that's what happens.
Put some glue on that patch on that bandaid on that gauze on that splint on that cast over that compound fracture that still needs to be set.
Chrysó skýles!
(Gold bitchez!)
emergency lending is bailout money.
it is there to keep the value of debt based assets, particularly mortgages and mortgage related products, and insurance related products-------stable.
the problem with this is that the stability of an untenable debt system is simply a way of attempting to maintin financial slavery on paper while the actual work needing to be done to pay off the interest on the debt cannot be done because there is no demand for work.
the net result is the 'solution' offered by politicians is free money to the government to pay jobs that do nothing but dig holes in order for the banks to get their debt serviced.
in this regard the exisitng money stock of savings is devalued and good work, and good choices of saving that work done by people previous to the crisis are devalued by new money that is seekig to enable people digging holes in the ground.
creative destruction means banks failing and debt assets being written down and a court system used to discharger those debt to the debtors. the debt is destroyed banks go OUT of business as their debt assest vaporize and the system resest------eventually , deflation brings prices down dramatically and the biggest losers are institutions.
the biggest winners, savers, organized crime, and other people who have hard assets or hard fists. oh yea, and some people might wind up in actual slavery after such a deflationary bust.
let's be honest . THERE ARE NO GOOD OUTCOMES.
Agreed, as do others.
Nostradamus: (Cent. 8 Quat. 28)
Les simulacres d'or & argent enflez,
Qu'apres le rapt au lac furent gettez
Au desouvert estaincts tous & troublez.
Au marbre script prescript intergetez.
Translates as:
The copies of gold and silver inflated,
which after the theft were thrown into the lake,
at the discovery that all is exhausted and dissipated by the debt.
All scripts and bonds will be wiped out.
emergency lending is bailout money.
it is there to keep the value of debt based assets, particularly mortgages and mortgage related products, and insurance related products-------stable.
the problem with this is that the stability of an untenable debt system is simply a way of attempting to maintin financial slavery on paper while the actual work needing to be done to pay off the interest on the debt cannot be done because there is no demand for work.
the net result is the 'solution' offered by politicians is free money to the government to pay jobs that do nothing but dig holes in order for the banks to get their debt serviced.
in this regard the exisitng money stock of savings is devalued and good work, and good choices of saving that work done by people previous to the crisis are devalued by new money that is seekig to enable people digging holes in the ground.
creative destruction means banks failing and debt assets being written down and a court system used to discharger those debt to the debtors. the debt is destroyed banks go OUT of business as their debt assest vaporize and the system resest------eventually , deflation brings prices down dramatically and the biggest losers are institutions.
the biggest winners, savers, organized crime, and other people who have hard assets or hard fists. oh yea, and some people might wind up in actual slavery after such a deflationary bust.
let's be honest . THERE ARE NO GOOD OUTCOMES.
I'll say it again; those Greek citizens better learn self sufficiency skills asap. Gardening, foraging, survival-skills, permaculture, etc.
Don't worry. The Greeks have a datscha culture like the Bulgarians and the Russians. Additionally they keep thanks to the sanctions agricultural products that were destined for export to Russia in the value of approx. EURO 500 million p.a. which they can distribute among the needy
Don't worry. The Greeks have a datscha culture like the Bulgarians and the Russians. Additionally they keep thanks to the sanctions agricultural products that were destined for export to Russia in the value of approx. EURO 500 million p.a. which they can distribute among the needy
That long position I took on Greek donkey carts is lookin' better every day!
:)
hairball
They should give each bank a money printer to facilitate the withdrawals....All linked to the ECB main database -
empower the people
it is their money
I'm surprised it hasn't imploded. Crap data from the US today, Greece farrago carries on.
DavidC
Beat capital controls with crypto, precious metals are too cumbersome! In the event of a massive world economic crisis gold and silver will most likely be outlawed. It has happaned before!
http://www.btcfeed.net/news/beat-capital-controls-bitcoin-not-gold/
The poor Swiss Franc. On the floors of swiss banks you hear all the day "Kalimera - Kalimera" interrupted by an occasional "Buon giorno"
See the Bank.
See the Bank run.
Run run run.
See Draghi.
Funny funny Draghi.
See Draghi print!
Print print print!
Run Bank run!
See gold.
Shiny shiny gold.
See Greeks buy gold.
Gold gold gold. Print print print. But Draghi cannot print gold. Poor Draghi.
Greeks are smart. Smart smart smart when they buy gold.
Silly silly Draghi. Print print print. Maybe he will be tired of printing soon.
With apologies to (1) whoever reads this and (2) http://en.wikipedia.org/wiki/Dick_and_Jane
People who buy gold don't need any apologies.
I wish there was confirmation of net outflows from the Greek banks. It places an even heavier load upon the new gov't to accommodate the EU. Bank runs could abort the new gov't.
Two new acronyms:
BRICGS
PIIS
Given that Greece is not really willing to pay back their debt under any terms, how come the EU hasn't decided yet to let there be a bank run in Greece to put a bit of fire under vasafakis ass? Or is that on schedule for Friday?