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Greece Blows Up Negotiations – Bank Run Has Started – Some Banks Won’t Be Able To Open On Monday
Despite cautious optimism earlier last week about reaching a deal, the talks have suddenly derailed after Greek Prime Minister Alexis Tsipras announced he would organize a referendum in Greece about whether or not accepting the proposal from the three institutions. Strange enough, Tsipras received a standing ovation from his coalition partners when he arrived in the Greek parliament earlier today (see next image)
This was a huge surprise as this basically was sticking up another middle finger to the European Institutions. By instating a referendum (to be held next Sunday), Tsipras tried to accomplish two things. First of all, he wanted to arm-wrestle the institutions into giving Greece an extension of a few weeks (which obviously didn’t work), but secondly it also looks like he was trying to cover his (political) ass by putting the responsibility of the decision on the shoulders of the (uninformed) citizens.
Indeed, uninformed. Not only have the Greek citizens been influenced by demagogic statements (‘the three institutions only want to humiliate the Greeks (and Greece as a nation) and don’t care about an honest solution that works for everyone’), but on top of that, the question which will be asked at the referendum also isn’t really worded very fair. According to our information, the only question on the ballot will be ‘Do citizens of Greece reject the proposal by the three institutions? Yes/No’ and someone should call Tom Cruise because it will definitely be a ‘Mission Impossible’ to educate the Greek citizens about what exactly the proposal was about.
Even if we ignore the legal aspects of calling a referendum (our sources tell us a referendum can only be called on matters of national security and not for foreign relationships), it wasn’t just the Eurogroup and us who were surprised, the Greek population was also caught by surprise and a new bank run started on Friday night already.
Things only got worse on Saturday as several reports and images have reached us of tens of people are queuing at the ATM’s of the country and ‘several hundred’ (almost 10% of the) ATM’s all over Greece are now empty (see previous image), despite the Greek national bank stating the ATM’s are replenished ‘smoothly’. The Greek citizens obviously don’t trust the situation and if the current bank run continues, we expect some banks to be closed on Monday unless the ECB makes more funds available – which it refused to do on Friday.
Something WILL have to happen, and the ECB has called an emergency session on Sunday. If no agreement can be reached before Monday, we expect several smaller banks in Greece will have to keep their doors closed for the public. Pensioners are standing in line to withdraw their entire pension (which was deposited yesterday), and it looks like people will start to hoard cash. It would be very interesting to see some updated numbers on the demand for gold from the Greek citizens
The tension is rising on the streets of Athens and Thessaloniki and if the banks shut down on Monday, the always hot-tempered Greeks could be on the verge of rioting. Several European countries have already emphasized tourists need to bring a sufficient amount of cash money if they plan to travel to Greece, indicating a disruption of the complete financial system is a very realistic possibility.
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They CAN call a referndum, which is simply a vote to gauge the oppinion and will of the people. Its just a poll.
But it isn't a referendum in the legal context, and they are not bound to follow the result.
However it does give a clear picture of what the people think, and this IS a fucking democracy.
You know, the people choose a small number of people to manage the affairs of their country on their behalf, for the benefit for the population of the country.
And I don't think you can say the Greek people are ignorant of what is going on. It is their welfare, their future, I can bet most a much better informed about the realities than say Americans are about the USA. Greeks would be most intimately trying to understand what is going to happen one way or the other, because it is dealing with money in their pockets today and tomorrow, and their Pensions, the one thing the plan to rely on. So the people will be talking about this non stop between themselves.
They are not sitting there watch the Voice every night not caring about anything else.
So a referendum of the Greeks would probably be more informed and understood than most.
Looks like some socialists have run out of other peoples money. Who could have guessed that would happen?
Ha ha ha good one. Nobody asked the Greek people when they were borrowing the money and they especially didn't ask who they should spend it on.
Now it's time to pay it back guess what, all of a sudden the voters are involved.
I say they should look up whose signatures are on the original loans and let them pay it back.
This is VERY interesting.
The first sovereign to admit it can't pay off its debts?
So what about Japan, USA, UK, France, Italy, Spain, .......
Squid
When the FED prints dollars to "buy" up US govt debt, it's equivalent to announcing a default.
That's why so many countries are joining Russia and China in setting up an alternative payment system and settling trades in other currencies.
Geat concept. So all Central Banks that create debt to pay debt, ignoring real govt revenue (which is tax stolen from the productive economy and GDP) ... are insolvent? BRILLIANT!!!! Pass me a Guiness.
Not the parasitic banks, but the sovereigns.
a huge wrong way cds bet on Greece.
Banks have the ability to borrow money from the international banks and central banks. They are just deciding not to, to put pressure on the government.
If the banks refuse to open, then the government should revoke their charters IMMEDIATELY!!!!
Good thread. Useful comments.
I do indeed think there will be another last minute, miracle bail out. I have been conditioned over the past 5 years to believe that it will be so.
Having said that, I also happen to know that there was a giant order placed with an international style currency printer over a month ago. Unfortunately, I did not bookmark the reference nor can I find it. It came from a credible source.
That's why I think there is a shot that Greece will tell the troika to go fuck themselves. My over under line is 65% chance they stay in...35% chance they say adios.
"Uninformed"
The Greek sheeple are the same as sheeple everywhere: they want more services and less taxes -- and care not if they destroy their society to keep the free stuff coming.
In a nut shell, the boomers and the "silent" generation are screwing up the world because they are pretty much all narcissistic.
Only a small percent ... the .1%.
Don't forget yourself- judging from your narcisstic comment.
by yourself's comment you not worth any better neither ( so i am, it's endless, raise speech quality 'd good start )
Do banks in Greece have to report suspicious transactions? If so, I guess EVERONE in Greece is on the list for making 'suspicious' withdrawals.
A small snippet from the article....
our sources tell us a referendum can only be called on matters of national security and not for foreign relationships
What is a nation composed of??? Its people, of course, not a few corrupt pols & banksters.
It's the foreign relationships that are threatending the people of Greece
Given the threat to the security of the population, I think it is easy to make the case that what's going on IS about national security.
The trouble with these negotiations is that no one knows what the hell anyone else is talking about. They've made the whole thing so complex,so Byzantine, that I doubt anyone, even Schauble, knows every aspect...
By the time you dicker over numbers, percentages, spreads, etc, you've forgotten what it was you were talking about. Or you've completely missed the point.
This is about PEOPLE, pure and simple. And it needs to be kept 'about PEOPLE', and not allowed to sink into numerical fantasyland. The negotiation from the Greeks should be that the PEOPLE and their needs come FIRST. After that, if there's anything left, debts can be paid.
So, there wouldn't be any VAT taxes on medicine, food, stuff like that. Tax the shit out of imported Hello Kitty ankle socks if you wish, but leave grandma's heart medicine alone. Forget about 'the numbers', look beyond them, see what they represent.
People come FIRST. Money goes to the back of the line and waits its turn.
Fuck fiat money and all its worshippers! No more throwing people into the volcano to appease this petty worthless godlet!
" honest solution that works for everyone’" Does that mean volunteering to become slaves for the fiat NOTES printers and their frontmen stooges the politicians.
This Greek tragedy is assuming herculean proportions, it has humor,it has pathos and dollops of hardship and suffering. Watching the misery and sad fate of the Greek people from wherever he is, the Great Alexander must be turning in his grave. Will the match that sets spark to all of Europe be lit tomorrow ? This Sunday, attendance at churches in Greece must be at record levels. Pray,Pray,Pray !
I am working for the EU and I have to say: thanks Alexis, you have balls!
I am so fed up with this politians and their hidden agendas blocking any real democracy as they are only interested in their ego games. Like little children playing in the sand box. It's time for a catharsis!
Ditto
goo.gl/693wyL
That's a good thing if they close on monday, they're keeping your your money safe ;)
Gold, at this point, is a long term strategy where the problem is needing a short term solution.
If cash is short who can buy your gold?
Holding gold is something we all should consider but when the ATM is running dry, getting currency should be the main focus.
There will be lots of time to trade gold for drachmas in the future.
Dude, Greece is not landlocked. There are many countries who will gladly exchange Greek euros for gold. As a Greek, you have prepared for this (intelligent) or you have not prepared for this (dumb fuck)
If you are prepared, have the bulk of your assets in precious metals, this is no big deal. You will also go to the front of the line when they start handing out drachmas again.
don't wait for the ATMs to start running dry....get your cash out now minus the minimum required to pay your bills,
Is Greece experiencing inflation or deflation?
Deflation. 25 months in a row now.
It doesn't matter. It's unsustainable. You can't squeeze blood out of a stone. The ultimate responsibility lies in the EU leadership who knowingly let Greece in while ignoring the swap agreements which helped to hide their true debt position. At least Golman got paid.
Agreed -- in their insatiable greed to devour the whole continent along with its various populations, the EU gluttons ignored the warning label and bit off more Greece than it could chew and now it has severe dyspepsia. Maybe terminal. I hope the EU perforates itself and puts the whole EU scam out of its own misery. The sooner that travelling circus folds the better.
Today in Greece... a bank's ATM stands for.. "All Their (the banks) Money"...
This pictures I have of Liz II are very valuable. I just traded some today for a loaf of bread and some Dutch cheese.
"This was a huge surprise as this basically was sticking up another middle finger to the European Institutions. By instating a referendum (to be held next Sunday), Tsipras tried to accomplish two things. First of all, he wanted to arm-wrestle the institutions into giving Greece an extension of a few weeks (which obviously didn’t work), but secondly it also looks like he was trying to cover his (political) ass by putting the responsibility of the decision on the shoulders of the (uninformed) citizens."
IMHO, this is a surprise only if you haven't been paying attention for the last few months.
Syriza was elected with the mandates: 1. Get a relaxation of austerity; 2. Stay in the EU; and 3. Retain the Euro. These mandates are sufficently contradictory to leave the Greek government in a weak negotiating position - denied the nuclear option of "FU We're Leaving".
Tsipras and Varoufakis have spent the last 5 months telling everyone: 1. Greece is broke and can never pay the Troika debt, or meet the payment schedule; 2. Greece does not want to continue to run up debts by continuing to play "Extend and Pretend", borrowing more money to meet debt payments; 3. Greeks are suffering terribly under austerity; and 4. The only deal the Troika will take is for increasingly severe austerity and more debt by Extend and Pretend.
Tsipras and Varoufakis have continually added to their offers to the Troika, going way beyond their initial positions. Wolfgang Schaeuble has become the face of the Troika, with his thin-lipped "NEIN, NEIN, NEIN."
The Troika and Wolfie Shambles have consistently refused to accept any deal that is short of complete surrender by Greece, while hinting broadly and strongly that they want the Syriza government to be overthrown (a military coup would seem to suit the Troika).
Greek default is now inevitable since the Troika refuses to change the payment schedule and refuses to advance money to Greece for it to meet the payments due this month.
Syriza is now in the best position they could hope for in the circumstances to get a mandate from the Greek people to say "NEIN, NO MORE AUSTERITY" to the Troika, even if it means leaving the Euro and the ECB banking system.
For their part, the Troika have made it easier for Syriza, by making it seem that the Troika could never be satisfied, and now by Dieselbloom saying that their Final Offer would be withdrawn before the referendum date. Why vote "Yes" to accept an offer that is no longer there?
The Troika now must face its fears - Greek default and its contagion through the Euro zone markets, derivatives meltdown, banks having to write down Greek bonds to market value, and anti-austerity political movements in Spain, Italy, Portugal, Ireland, and France being inflamed.
Good post Al.
do we have algo opininion writing ?
No breakup of Eurozone.
Eurozone common fiscal policy here we come...
I recall a statistic from '09 or '10, that there were more Porsche Cayennes licensed in Greece than there were tax returns stating annual income of amounts equal to the cost of a Porsche Cayenne.
I could use me a handy little atv like a Cayenne.
What does the word "income" mean in a tax statute in the US?
'This was a huge surprise as this basically was sticking up another middle finger to the European Institutions. By instating a referendum ..... by putting the responsibility of the decision on the shoulders of the (uninformed) citizens'
The two things that jump out of this opinion piece is that,
1. The Europeans were acting in good faith
2. That ordinary Citizens are too stupid and ignorant to understand anything
The Eurotrash are acting like a bad version of the Mafia, the drive to create an overall EU Superstate has led us to a point where poverty and a return of Helotism awaits the Greeks and all the South of Europe. While the global elite get to spend their funny money buying assets across Southern Europe for next to nothing.
Time is coming for the biggest upheaval since the 1930s with a dash of the French Terror thrown in. The EU system may stagger on for a little while longer but its days are numbered.
If the people vote to keep paying the Troika, then they are debt slaves. If they vote not to pay the Troika then they are broke but free. They should have had this vote a couple months ago because tourist season is now well under way. If they had the drachma in place even a few weeks ago, the cash would flow and the transitition would be easier. Good Luck my friends.
Freedom is not free. Fuck the EU. You'll live to see another day as free men.
Guarantee they vote to stay in the Euro. Reference the Scotland indepence vote and David Cameron get re-elected. The sheople are pussies.
Don't be so sure. Sooner or later this mf'er has to end. It may be today.
yeah but NOW Scotland is 95% SNP-next vote to leave will be a landslide of YES
This is ass covering at its finest. It's all falling apart and Greece is screwed no matter what, so make the people responsible for the crash.....
Panic time, go to ATM, stand in line.
What sutpid ass idiot would have waited until now to get their money out of Greek banks? Those stupid asses deserve exactly what's coming.