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As Seen In Greece: "I Rushed To The Bank" And The Return Of ATM Lines?
Late last Friday, we reported what many had feared: the Greek population's faith in its government's negotiating skills evaporated last week amid a breakdown in talks with creditors, leading to what local sources dubbed a "massive" €700 million deposit outflow in one day (and over €3 billion for the week).
Now, courtesy of FT which confirmed just what we said, namely that "anxious Greeks [are] pulling money from banks amid fears of capital controls", we get the visual confirmation of what happened and is still happening on the ground:
As FT goes on to note, Greeks are doing anything they can to store their euros outside the banking sector amid fears of capital controls. Here's more:
Two weeks after Greece’s leftwing Syriza party won power at a general election in January, Panayotis Fotiades pulled his deposits from an Athens bank..
To protect his savings he bought a brand new Mercedes-Benz car, then took the advice of a financial consultant and invested the remainder in money market funds based in Luxembourg...
Many other Greeks appear to be taking similar precautions. Even as the economy has been sinking, new car registrations have soared this year as worried Greek depositors seek out alternative havens for their money. They rose 27.9 per cent in April on top of a 47.2 per cent increase in March..
Athens could eventually impose capital controls to stanch the bleeding of deposits but that would also risk turmoil for basic business and financial transactions and threaten devastating consequences for the wider economy.
“The continuation of these outflows significantly increases the risk that the local authorities will impose capital controls to limit deposit outflows, which in our view would be tantamount to a bank deposit default,” Moody’s, the rating agency, warned in a report this week..
Fears of a default last week drove another increase in withdrawals. More than €500m left the system on Friday, the day Greece missed a €300m payment due to the IMF, saying it would bundle up four separate loan instalments and instead make a single €1.5bn payment at the end of June.
“I was spooked. It looked at first like a real default so I rushed to the bank,” said Eleni Papageorgiou, a former finance ministry employee...
Areti Simopoulou, a retired store owner, said she heads for the cash machine at her local bank branch at the end of the month and withdraws all her pension money at once.
“I used to take out half and leave the rest for an emergency,” Mrs Simopoulou said. “Now I feel relieved it’s there and make sure I take out every last lepto [cent].”
Which brings up the question of the "other" parity: while everyone has opined on when/if the EURUSD will hit 1.00, for Greece a far more relevant question is whether the ECB's generous ELA funding of insolvent Greek banks will reach parity with the amount of Greek deposits in the bank system.Keep a close eye on the weekly increases in this series because once the amount of ELA eclipses all Greek deposits, that may be the point when the ECB finally cuts its losses, and leaves the Greeks with the total "bail-in" wipeout.
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Doesn't matter, Germans have your back.
Idiots.
American Society forgot the dangers of keeping your money in the banking system with the death of the adults who lived through the Great Depression. Current generations will relearn that lesson soon enough.
wow, that's like, 5 people....
I think its only 4 people in line, the last old man looks to be walking past not standing.
People dont panic 2 weeks before a decision they panic the day after.
Lesson from Cyprus, dollar (or Euro) in wallet is more worth than is dollar (or Euro) in bank. Lesson from Soviet era, if you are see line, quick form in back, find out later why is line.
yes Boris, I have lived through the "see line, join line", it's real.
For Barry Soetoro, when is see line, is snort line.
Jesus, the line at my local wal-mart checkout is longer than that, we must be running out of crappy chinese shit, I better go get all I can carry.
Difference is Walmart line longer only because many customer is use store scooter with sagging chassis.
Borees! Yousa on flames today! :>D
If you look at the shadows of people it suggests more....what amazes me is that people there still have any money in the bank? wtf?
I'll bet it looked like this:
https://www.youtube.com/watch?v=lfP8__wl-_4
Well at least there'll be cheerful, plucky music to accompany the bank run. (and everyone just laughed and laughed later.)
buying 40 ounces of gold would have been SOOOOO much easier than buying a car, that costs a lot of money to operate, and depreciates at a very fast rate....and you bought a Mercedes on top of that!!! The Germans are getting you guys both ways!!!
Perhaps, but they will let you drive the car across the border...
and tear out those hand-sewn leather seatcushions looking for the gold coins smuggled inside.
I'm a newbie here, and work in the computer industry, not finance, so pardon me if this is a stupid question.
I agree that buying a rapidly depreciating asset like a car was not smart.
But if he buys gold and the economy collapses, will there really be anyone to buy his gold? What can they offer in exchange? Maybe food or some other necessity, but how would you value the exchange so you don't get screwed?
And if the price of gold skyrockets, don't you now risk your life every time you whip out a coin to try to barter?
Him: I'm starving, but I have this 1-ounce coin worth $20,000.
Other: I have a can of beans. Take it or leave it.
Junk Silver for trade, gold to store wealth.
pods
'Junk silver' usually low value coins, is only really available in the US. In UK/EU all silver containing coinage was 'hoovered' up decades ago.
Over here a 1oz coin is generally the smallest, apart from very limited amounts of jewelry etc.
Also there is a sales tax, VAT, of in the UK 20%, on non legal tender so most are caught by that.
So that means you will do all of the servicing, including creating the different lubricants and fuel. Not to mention wear and tear on the parts... do you make those parts in your garage? What roads are you going to drive it on when they are in disrepair?
I'll hold on to my Silver and Gold, as well as copper, etc. and never worry about it breaking down on me.
Think of it this way. Gold is the way to carry wealth from one financial system to the next. It can be traded for good during a crisis but its true value is storing wealth that transcends financial systems.
Paper asstes can be wiped out in an instant. Paper currency can lose its value in an instant. Things that people need and want retain value. Gold has stood that test for probably more than 10,000 years and through all of recorded history.
If you are worried that someone might steal your valuable gold then you are afraid they will steal anything of value that you own. Gold isn't any different other than being more concentrated wealth than other forms.
That is completely wrong, anyone that has ever dealt in the black or grey markets knows this to be so wrong it's laughable....also I didn't realize paper bills or digital "currency" was that much more filling when you eat.
If you are such a bad haggler or so naive as to think that 1oz of gold is only worth a can of beans....well Nature should take care of it at that point.
Besides having gold and silver without having guns and ammo is rather dumb, and probably the majority of people that can figure out to stock gold and silver, probably have some food and weapons stocked as well.
Italy and Spain are next
"we get what appears to be visual confirmation of what happened and is still happening on the ground:"
4 people lined up behind 2 ATMs? Is someone from Buzzfeed writing the articles for ZH now?
The greeks do bank runs in greek style...between siestas....
Looks like a Canadian bank run. They seem to insist upon 4 ft of personal space even while in line.
That's city folk. Here in the sticks we require 8 ft
Srsly. Go to any kollege kampus at lunchtime. The lines will be 2x longer than this one...
But Kollege $tudents don't have any money.
Imagine if they cut-off food withdrawals in the Kafeteria...
Kollege $tudents (thanks for that one) do have money - from $tudent loan$. When I was selling my motorcycle after kollege (to pay for worthless friend's rent), two of the prospective buyers were kollege $tudent$ waiting for the loan money to come through. That was in '11. It has likely gotten way worse since, as inflation in housing and food (and everything else) pretty much force the kollege $tudent to take out a loan.
That is an FT article, a main stream news source. (supposedly)
So you met to say, "Is someone from Buzzfeed writing articles for FT now?".
Which 'news' source carries more weight? Zero or FT?
Wow, that looks dangerous. That was just like the bank run in Mary Poppins.
They obvioulsy got enough money to buy new cars with cash
Doubtful there are any loans being made whatsoever, let alone on cars
Why give them anymore? There's enough money to go around. Just default and live within your means, fuckers.
WW3 Better start soon. Barry's allies look like they are coming apart at the economic seams. Everyone loves austerity and bank holidays. Italy and Spain will be next. Ukrainians in Kiev made a great decision choosing the EU and the fucking IMF over the Eurasian Economic Union and Russia. LOL, LOL LOL As Victoria Nuland said, fuck the EU!
>>> Ukrainians in Kiev made a great decision choosing the EU
KIEV, June 1. /TASS/. Ukraine has stopped paying out welfare payments for pensioners, World War Two veterans, people with disabilities, liquidators of the Chernobyl disaster beginning with Monday, since the law of December 28, 2014, on stabilizing the financial condition of the state has come into force. It affects practically all social security beneficiaries, without defining the mechanisms for providing targeted assistance to low-income groups.
Kiev has eliminated transport, healthcare, utilities and financial benefits for former prisoners of Nazi concentration camps and recipients of some Soviet-era orders and titles. Compensations to families with children living in the areas contaminated by radiation from the Chernobyl accident will be no longer paid either.
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Coming soon to a G7 country near you.
"...and that's how the country once known as Ukriane ended, Johnny. Don't belive what the internet says. Ukraine wasn't just an urban myth - it really, really existed at one time. I remember it distinctly..."
Ukraine is dead thanks to Geoffrey Pyatt and Victoria Nuland!
https://www.youtube.com/watch?feature=player_embedded&x-yt-ts=1422503916...
http://thetruthspeaker.co/2015/04/19/10-reasons-ukraine-is-dead/
After the reset, banks will demand cashless from the holdouts. Enslaving depositors is their only hope.
It is crucial that government does not pump in money to save insolvent banks.
Otherwise poor people pay for the sins of rich.
Too late...
It's not too late if you let the banks fail and default on all foreign debt.
Where have you been hiding? All bank losses are socialized, and sovereign debt is "renegotiated" via haircut, or repaid with massive printing. The central banks have already bought all the worthless paper from the banks and are busy buying each others equally worthless sovereign debt. The entire world is chasing Zimbabwe.
The people standing there, you can see the panic in their faces!
This article about a Latvian bank shows an example of an actual ATM panic:
http://www.shtfplan.com/headline-news/this-is-what-your-atm-will-look-li...
Cars. Because they keep their value so well. But I suppose you can always take a loan out against them now.
You call that a 'Line'? That's not a line. Now take a look outside my local social welfare office on a signing on day, now THAT'S a line.
... and with handfuls of Euros, issued by the ECB, the Greeks were told to hand them all over to the nearest bank by the Friday 5pm deadline announced today in exchange for the new Drachma. If they try to use them, hide them, or smuggle them across the border, they will be prosecuted and may face a prison sentence following emergency legislation passed through Brussels on Monday. After being exchanged, the new drachma was devaluing on an almost hourly basis...
The only citizens with any hope of retaining any purchasing power, were those that had the foresight to have exchanged their Euros for gold, silver and other commodities back in June 2015. One particularly astute Greek citizen installed several large fuel tanks on his farm and exchanged all of his savings in Euros into diesel. His fellow citizens now buy it from him at a small discount as the price at the forecourts rises daily.
The only people that are able to keep up with the prices of everyday essentials are the fisherman and farmers who's produce manages to keep pace with the increase in prices of other everyday items at the supermarkets.
Like any Technical Analyst ,worth his salt, would tell you, always buy when everyone else is panic-selling and sell when everyone else is crazy-buying. The media in Greece are bombarding the population with news of an imminent exit from the Euro and capital controls.Since i always believe exactly the opposite of what the media are saying here's what i think will happen: 1)The media cause panic in the population and the people rush to the banks to withdraw their money ,putting additional pressure on the banking sector and the goverment. 2) The stock market crashes to very cheap levels 3) In the midst of all this panic, Foreign and Local funds scoop up all stocks 4)After a month or two ,of drama, the Goverment comes to an unpleasant but "necessary" deal with the EU,which the people,after all this panic, accept with relief 5) The stock market soars and the above mentioned funds make millions. 6) After a few years the Eurozone falls apart like a house of cards because Germany or some other big player decides it's not in their best interest to keep this, Zombie like thing called the Euro,going any more. I'm Greek and know first hand what i'm talking about and no i didn't vote for Syriza and yes i believe in free market economy as long as there are enough companies around competing to bring prices down and quality up and not a few monopolies that stifle innovation. The worst one right now is the money monopoly of Private central banks that control and issue colourfull pieces of paper and exchange them for actual Goods and Services. As a sidenote believe me when i tell you that the day the Eurozone will be about to end , the media will be telling everyone how strong and safe and stable the Euro is, and then ......poof aaaaand it's gone.