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For The First Time Ever, Total ECB Claims On Greek Banks Surpass Total Greek Deposits
If it seems like it was only yesterday (in trading days) when the ECB boosted its latest Greek ELA by €1.8 billion to a record high €85.9 billion, it's because it was.
Fast forward to Monday morning, when following a Friday bank run which sucked out another €1.6 billion coupled with another €1.6 billion withdrawn over the weekend and today, and perhaps the only question is why did the ECB not hike its latest "emergency" ELA disbursement more than just another €1.9 billion to a new record high of €87.8 billion: after all it will have no choice but to increase its emergency liquidity for Greece's increasingly more insolvent banks (because the collateral against which the ECB is lending after a modest haircut would be worth precisely zero if the ECB were to pull its backstop to the Greek banking system) tomorrow, or else engage Goldman's plan B in which a Greek terminal bank run ends up in a default and as a result the ECB proceeds to boost its QE to "regain credibility", send the EUR plunging (to assist the internal revaluation), and assure another year of record bonuses for Goldman.
This is how the now daily ELA increases have looked like for Greece since the arrival of the Syriza government:
But perhaps what is even more important is that net of the latest ELA increase, when adding some €38 billion in collateralized EFSF bonds and other collateral usage, we find that we have not only reached parity but crossed it: as of this moment Greek deposits, which are generously estimated at €120 billion but in reality are lower, are less than the total ECB claims on Greek banks and the Bank of Greece, amounting to €126 billion.
Why is this important? Because if overnight the ECB says "no more", and pulls a Cyprus, forcing Greek banks to procure liquidity in other ways, those Greek "assets" which have collateral value only because the ECB is backstopping them (and which would fetch at most pennies on the dollar once all Greeks stop paying their interest expense on outstanding debt in a default situation), then suddenly the reality of a Greek bail-in which could amount to up to 100% of total Greek deposits, becomes all too real.
Will the ECB use such a scorched earth approach, one which could potentially wipe out virtually all Greek deposits in the biggest "bail in" in history? For the sake of the Greek people, we certainly hope not but then again there are those record Goldman bonuses to think of, and remember: the ECB does not a catalyst to boost QE even more...
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Great time to be in the black market in Greece.
Throw those pathetic Greek deadbeats out of Europe already.
Run, Forrest, run....
Fuck you Wolferl, you malaka. The sad thing is, history has shown that banksters and politicians usually take a course that fucks the most amount of people, ie the common citizen.
The German worker bee is fucked, Greece as with any other country will be given relief.
Gold German Bitchez.........I pick up pennies
Fuck the ECB, fuck the FED.
Wait a sec...you guys are shitting over two days of QE? We print Trillions... BITCH!!!
I remember about 15 years ago when folks were calling Greece's entry a fraud(3% deficit threshold was fudged) and that it wouldn't last. It was a Trojan horse takeover, of course. Now, it's time to pay the piper, deadbeats! Glad to see it didn't last much longer than the predictions of 10 years, for which we can only thank QE counterfeiting.
http://news.bbc.co.uk/2/hi/business/4012869.stm
Thats maybe the 12th time, at least, you've written that.
I wish they'd throw you out of ZH for persistent, unrepentant trolling.
Sounds like expression of butthurt from investor in Greek bonds.
Should have listened to Egan-Jones instead of Moody's, S&P, and Fitch.
Go for bailout to Merkel begging.
He is annoying like the Latvian potato troll.
FU Goldman Sachs
The Euro itself is a failed experiment.
as is the EU
Time to stop reporting anything about the Greeks finance. SOS!
They are going to stay on the Banksters hampster wheel until they can no longer run.
Greece like the rest of the world like it that way, and love to whine about it!
EU's "Thumb Up" gesture to Greece - Everything is great.
What you tough is yours is mine now!
There’s plenty of people in Greece who own a gun.
It’s going to get bloody for sure!
Best to hunker down in the wine cellar if your a farmer in Greece.Put your gold and silver in a good safe spot.(not in a bank)
honestly, since the ECB, IMF, Uncle Sugar, and the rest of the NWO Banking and Warfare Imperium can't give enough money to Ukraine, which doesn't want to pay for anything...
why not have Greece borrow directly from Ukraine, so Ukraine can buy more weapons from the MIC to kill and ethnically cleanse the ethnic russians while doing all it can to help provoke Russia into a defensive manuever that can be sold as aggression in the Times?
Brilliant!
Less is moare and the market soars.
I think the pundits, are the smartest guys in the room when it comes to Greece. Its not because they got it RIGHT. Its because they've been getting paid to write or pontificate and spew the same shit for 4 to 5 years. Great gig if you can get it.
James Turk has been keeping a keen eye on this dynamic and said months ago that when greek deposits fall below what the ECB is owed, the banks will bail-in the Greek deposits they'll get Cyprused. We'll see if he's correct.
Premium must be awful juicy on those calls being sold to the Greeks on the basis of some type of monumental bailout hopium. ZH correctly points out the inflated deposit data but the fact that it is above 0.00 tells you how there are still very large numbers of citizens that just assume everything is awesome. Aside from restrictions on physical cash distributions why on earth would anyone leave cash in a Greek bank. Wiring the money for a shit asset like a car makes more sense.
Is it just coincidence that the second graph is almost a carbon copy of the Italian flag?