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Cash On A Greek Bank Account? *Poof* It’s Gone!
The banks in Greece have been closed for six days in a row now, and Greek citizens were allowed to retire just 60 EUR per day from their bank accounts. Some banks reopened yesterday, but only to allow pensioners to draw 120 EUR from their bank accounts where their retirement benefits were wired to. This had led to dramatical situations:
Source: AFP
The situation is worsening by the minute, and whereas the National Bank of Greece said last weekend the ‘replenishment of the ATM’s goes smoothly’, there now is a shortage of 20 EUR notes. This is due to the effect most people wanted to withdraw the maximal amount of 60 EUR, and the only possible combination at Greek ATMS (which only contain 20 and 50 EUR notes) is to withdraw 3 banknotes of 20 EUR. This leads to surrealistic situations where shops and supermarkets are unable to give their customers change.
Source: Slate.com
The tension is increasing, and there’s no way the banks will be open again right after the referendum. The capital control measures will have to be extended because most people would raid their bank accounts the minute the banks reopen again. Exactly BY instating capital controls, a bank run is more likely than ever, as the capital controls imply the cash simply isn’t there anymore. This was confirmed by senior bankers in Greece, which confirmed the ATMS would run out of money by the middle of next week.
Source: Slate.com
The only possibility to replenish the ATM’s would be to ask the ECB to increase the Emergency Lending Assistance ceiling from 89B EUR towards 100B EUR. That’s theoretically a realistic assumption but this will be subject to a) the Greeks not overwhelmingly voting ‘no’ in the referendum and b) the question if the ECB wants to play hardball over a 22 year old loan.
According to a German newspaper, the National Bank of Greece was supposed to repay a final 470M EUR slice of a loan at the end of June. This money was ‘given’ to Greece in 1993 and should have been paid back by now. So after defaulting on the IMF payment, Greece has actually also defaulted on a commitment to the ECB outside of the emergency bailout measures.
So, why would the ECB still be interested in providing more funds under the Emergency Liquidity Assistance program if the country’s central bank has already defaulted on an old loan?
That’s why the risk of a bail-in has become realistic now. Rumor has it there might be a 30% bail-in on deposits above 8.000 EUR. So if you have 50.000 EUR on your account, you’d wake up one morning to see you only own 37.600 EUR anymore and 12.400 EUR have been robbed from your account. Never mind the 100.000 EUR guarantee extended by the government, never mind one has worked hard his entire life to save some cash. One morning you’ll wake up and a part of it will be gone.
That’s once again a reason why hard assets are an excellent thing to own – as long as you keep it outside the financial system because even people who did buy gold but stored it in a bank’s vault still aren’t able to monetize it now, when they need it the most.
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Lol. What a crock of shit.
The Greeks are supposed to pay back "money" to a bunch of crooks that loaned them "money" they created out of thin air?
The Greeks should tell the ECB to go fuck themselves.
The ECB should just create some more hocus pocus fake money & pay themselves back!
Fiat money is the biggest scam ever perpetrated.
What kind of idiot makes an unsecured loan to a bank or government for anything but a trivial sum? No sympathy whatsoever for people with their life "savings" lent out with no pledge of collateral from the borrower whatsoever.
Why would the. Governmet default to itself?
One thing to recapitalize a Bank...but how do you recapitalize a country?
"All deposits are safe and can be withdrawn" seems pretty simple to me.
The alternative is that the money itself.is no good...
Why would the. Governmet default to itself?
One thing to recapitalize a Bank...but how do you recapitalize a country?
"All deposits are safe and can be withdrawn" seems pretty simple to me.
The alternative is that the money itself.is no good...
Greece will be just a step ahead of ecb, boj,fed ,and boe, when theres no money in the system, theres no bsnks , or govts.
Either way the vote goes..it looks like a financial "chain reaction"..like Fukushima..it will just take a life of its own..and the sh*t will just keep rolling down hill.
they will have to build a big wall of ice to keep the cold cash from leaking out
buy Monday dip. ECB will install new Govt., renegotiates terms, problem solved. Italy Spain learn a lesson. No one remembers this silly little issue in Greece. Remember world wide debt is over $100 trillion, so $300 billion isn't even noticed. This is all about teaching left wingers a lesson. And the Germans know how to teach those who cross them a lesson.
BLacks rampage in a Wallmart. Could this be the ghost of the futures to come? http://foxmuldar-conservative-thinker.blogspot.com/2015/07/georgia-black...
Thank goodness the fed can stilll print money or else we here would be in the same boat. But its coming.
I don't understand why businesses cannot give people change. The solution is simple: the business writes an IOU scrip for the money and gives it to the customer. This is no different than a banknote, except it is backed by the business rather than the government. At a later time, the customer can use the scrip for purchases, or trade it with someone else who eventually redeems it at the shop.
A supermarket could print up a set of 1, 2, and 5 Euro notes, called "Joes Supermarket" instead of "Bank of Greece," which would start the ball rolling to create an alternative currency.
Another approach would be to use an alternative national currency such as the U.S. dollar or Chinese banknotes. There should be multiple solutions to this problem, once you accept that the Euro banking establishment is no longer willing to support the basic economic needs for day-to-day trade.
What do these people do for their money anyway? From the look of things they just sit around and wait for direct deposit of entitlements. Do they work, do they do or make something that somebody else ie myself outside of Greece would like to buy? I'd like to help but not via a GoFundMe or other giveaway. This is bizarre.
To me it looks like they have run out of pretend money to pay people for their pretend livings. Two things gotta change - they need to get away from the pretend money, and they need do some goddamn work for a change.
"From the looks of things" I have no idea what is happening. I imagine the demographics include all age groups with all different needs and different levels of contributions. Imagining that they all are a bunch of early retired pensioners with a bottle of booze in their hands is foolish. Mind bogling that so many buy into such imagery.
It's the "No Banker Left Behind" program while the people are forced into austerity.
Ya know, I doubt any banker has ever seen less then a 7-course dinner and I doubt any will see it. The referendum may just impact how many billions flow into their pockets but any outcome will certainly be misery for the Greek private sector.
No matter the vote, things are going to suck badly. So which suck do you prefer?
Like I said, now wait for the cries for "humanitarian aid".
You know that is coming, humanitarian aid. LOLOLOLOL.
Yeah, the FED will lend them the "money" for humanitarian Aid!
Cue the obligatory South Park video.
OK:
Aaaand it's gone...https://www.youtube.com/watch?v=-DT7bX-B1Mg
The Greeks always have a way out. I know we don't know what, but the night is young.
https://www.youtube.com/watch?v=Zvl9N9GdraQ