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Greek Banks To Reopen On Monday, But Do Greeks Have Any Faith Left In Their Banks?
It was less than three weeks ago that, in the aftermath of the surprising announcement of the Greek referendum and the even more surprising cap on the ECB's now clearly conditional ELA, the world was greeted to massive lines of Greeks waiting at ATMs where they were allowed to withdraw only €60 per day. Following the Greek capitulation, whose sole directive was recovering access to locked up bank funds, hopes were that Greek banks would promptly reopen, and now, according to a Greek senior banker cited by Reuters we know just when that will happen: Monday.
Reuters reports that "Greek banks will reopen on Monday, a senior banker told Reuters after the European Central Bank decided to increase emergency funding."
Banks have been closed since June 29 after Athens imposed capital controls. "They will open on Monday," the banker said.
The ECB on Thursday increased the cap on emergency funding Greek lenders can draw from the domestic central bank by 900 million euros.
A ministerial decision on the bank holiday is expected to be released later on Thursday.
A government-appointed commission responsible for vetting capital outflows since controls were imposed said it had approved applications worth 819.9 million euros until July 13.
let me pop it up real quick
As Mario Draghi observed earlier today, Greek savers withdrew a whopping €8.1 billion in June, or about 6% of the entire deposit base, or about a quarter billion per day. Even under capital controls withdrawals continued at a pace of just under €100 million per day.
So what everyone is wondering is whether the events of the past 24 hours restored confidence in a banking system which, from the perspective of the ECB, was borderline insolvent three weeks ago, and is suddenly only "solvent" this morning because the Greeks voted the way the ECB strongly "hinted."
If confidence has not been restored, and if Greeks continue to withdraw their savings, the new ELA increase should be sufficient to last about 4-5 days (or even less depending on how much residual panic there still is) before the new ELA cap is hit and has to be increased.
But another question is what happens if Greek banks burn through all the ELA eligible collateral. Recall that the ECB also increased the haircut on Greek collateral and with good reason: with the economy grinding to a halt, paying their loans was the last thing on any Greek's mind suggesting non-performing loans held at Greek banks soared, along the lines of what the IMF suggested.
So the ECB suddenly faces a real test: did its actions provoke a terminal loss of faith in the Greek banks, or is there still some hope in fiat left. If the answer is no, and if the deposit outflows continue, this may prove to be the shortest "rescue" in European history.
Come Monday, will these people be lining up to re-deposit the money they pulled three weeks ago, or will they take the opportunity to withdraw all they have?
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Greeks will be withdrawing money at a record pace on Monday. Only the uninformed or unintelligent will keep money in a bank in Greece. Time to convert your money into bullion
So the 900 million increase today will last until Monday at lunch.
Grab all you can and RUN!
Clean out those safety deposit boxes.
International Banksters must be destroyed
Tsipras has said everything is good and he takes responsibility having signed to deadly deed.
I believe this is much more about Greeks being able to get their Government Feta at the bank on Monday, than it is about Greeks being able, or unable, to withdraw their own Euros from the banks.
I don't believe we will see many small business owners lining up at ATMs on Monday, as they have been successfully working around the banking system for some time now.
I do, however, predict that Greek pensioners and government employees will be returning next week to Greek beaches...
~"Greek Banks To Reopen On Monday"~
Said the spider to the fly...
"Hey!
HEY!!!
HAIRCUTS, Y'ALL!!!"
Everybody keeps thinking this deal is actually real. I've read most of the actual 'agreement' and the condition Greece is in now shall soon be known as "the good old days". Greece has given away their life on a definite 'maybe'.....
Ohh you make good joke! You say clean out safety deposit boxes, because they were already cleaned out by banks and creditors.
small and medium sized business can't. they have a payroll day to pay, among other things
in fact, one of the few lone news from Greece that make me a bit more optimistic is that even syriza seems to understand that. who knows, perhaps even marxists can appreciate the fundamental role of small and medium sized businesses... when their own skin is in the game
not that I expect the financial world of "unicorn shitting skittles" to ever understand the real economy of the small and medium sized enterprises
The best small businesses in the world have one employee. Maybe two....if it is your wife. Much easier to navigate the bullshit. Yeah, but if you have to have employee it is quite the pickle.
"unicorn shitting skittles"
Awesome!
Is that Unicorns shitting skittles?
or is it
Skittles shitting unicorns?
What's the difference, really?
@Ghordius
In the good old days we got paid on a Thursday every week..................weekend started on a Thursday
Great days
Now we have gone to mostly monthly........................
There is no reason not to buy and sell goods for cash even if you are a medium size business
Just need to go back to the old way of doing things
You would have to set up a "payroll" office. Pay employees in cash and document it all for tax purposes. Withdraw all your recievables daily from the bank as cash. You will need a good safe and a guard depending on your area of operation. You can also set your credit card recievables to go directly to your suppliers depending on type of business. Set up a line of credit with the bank and operate with a negative balance.
Just throwing that out there.
It will be just like running a petty cash book...........................just bigger
It can be done and used to be done that way
Weekly payments also help .................not holding so much cash
Not so easy. Some months my biz receipts are 90% credit cards or direct payments.
Slow and steady removal at $600 per day,every day, from the ATM has worked, but start now,
I started right after Cyprus.
Winston
Your Business can purchase PM and put them on ballance sheet as stock...............no tax as stock.
Will get taxed on the sale on the proffit (If one) less normal out goings.
HTH
If I ever find where I lost them , I'm well covered.
Cash , outside the system, is king right now IMO
Its skittle shitting unicorn.
maybe it's been brought up before here or other sites, but I guess I've missed it. If not, then isn't anyone wondering WTF people in Spain, Italy, Portugal and France are doing about their own bank accounts after seeing this shit show go on in Greece all this time???
Those countries are in more debt than Greece is. Aren't capital controls on bank accounts and other accounts being initiated in those countries too?
Every person in the so-called "free" world should have already been emptying their accounts years ago after 2008. And since then, year after year shit's gotten 100 times worse and more and more draconian banking laws have been enacted to keep people from getting their money out of the system.
Yet so many millions of people in Greece were still caught in this trap even after all the shit that's been happening there.
I would think people all over Europe after seeing this would be running on the banks like crazy right now if they haven't already, but I haven't heard much of anything about bank runs and cap controls in those other fucked up countries...and really not even here in the U.S.
But shit, people...if ya haven't done it already, get every bit of money you can out of the system while there's still time. And money you can't get out like 401k's if you aren't going to quit your job, well then just mentally write that money off and quit depositing anymore money into those accounts. Fuck it...that money will be gone, vaporized if you can't get at it in the next year or so.
It will never be there when you retire. But get everything else out now. I can't imagine why anyone at this point, especially in Europe, would not be withdrawing everything they can each day or week right now until they've emptied out their accounts as much as possible.
I hope Tyler has a way of measuring that because you can be sure you're not going to hear about that in MSM.
@Save_America1st
You should know the answer
You did a great post re...............Trying to help others for 8 years!
No one wants to know
Peeps see it with thier own eyes in Cyprus...........................but still do not "Get It"
Look out for you and yours as best you can
When Save_America1st blew a drunken gasket the other night, it was far from a "great post". It was the wrechings of a burned out cortex.
And SA1st, if you're listening, consider changing your name to "Save Me 1st", and act accordingly.
I've seen your type, and they start out with great intentions, and worry so much about everybody else, they neglect the most important entity...themselves. Why do you worry so much about others???? Has anybody EVER asked you that.?
(Introspective Observation here: So why do I worry about SA1st?... I'm not. Its just a typing excercise.)
... --- ...
XAU XAG, you are correct: "Look out for you and yours..."
@SolarSystem1932
Ta and Concur............................if you know what I mean?
My sister, who got a 47% haircut in Cyprus, is back banking with those self same banks.
Go figure, its beyond my ken.
Her reasoning is that lightning doesn't strike twice.I have finally convinced her to hold some
PM's outside the system at least.
Well funny you mention that Winston
I was going to put a post up that if I was a Greek and got some money in the Greek banking system.........................I would have been spending the last few weeks opening a bank account in CYPRUS LOL for the reasons your sister said.
On Monday assuming internet banking I would transfer the lot.................................and then go buy silver
So there you go..........................you gone darn made me post it LOL
Lightning doesn't strike twice...
Tell sister that is actually incorrect.
I have photographed lightning, and it actually hits the same spot MULTIPLE times during apparent single events.
And did you know wood workers will not use wood from a tree that has been hit by lightning?
The wood grain gets cooked and twisted and misbehaves badly with power tools and finished products.
Gotta go. Beer run before it rains....Florida.
Even here in "the land of the free"...try to withdraw $25k or $50k from your bank account in cash. You need to schedule an appointment and basically endure an interview as to why you are withdrawing so much cash.
What are your plans? Would you prefer a check? Etc, etc....
That's why you TRANSFER the money to purchase PM's and get them deliverd.
It's the same in the UK
Bastards have me figgering alsorts of ways getting round things...............it helps if you run a business.
Don't you know anything, you crazy conspiracy theorist? "It can't happen here"!! Doesn't matter where you are, "It can't happen here."
You're exactly right on about 2008. I've only kept a minimum amount in the bank since that time for paying the bills--often not even that. I'll go make a deposit to cover a bill the day before it is due.
The. Bank profits on Wall Street right now are OBSCENE.
That money ain't going to Greece that's fer sure.
I find unreal that the ECB can be this DUMB. Forget mere parity to the dollar...the inflation already over there has to be MASSIVE.
The EU bail-in directive - BRRD - has to be implemented by all EU countries under the threat of legal action no later than August this year and become fully operational no later than Jan 2016.
Anyone still holding cash at the bank in countries like Italy and France deserves that cash expropriated if they cannot be bothered to familiarise themselves with BRRD. As matter of interest, Swiss Banks on the Italian border have long ago run out of safety deposit boxes, so high is demand from across the border because BRRD, bail-in directive applies also to safety deposit boxes.
As for the 900mln. - this would only last for one week for continuing with the limited bank opening - EUR60 per day. After that the BRRD kicks in in Greece - 22d of July - Tsipras deal - last condition of the deal is the implementation of the BRRD.
So, Greeks will not even be given a chance fo a run on the banks. The rest of Southern Europe has another few months to clear their cash accounts. ECB, to "maintain stability" will have to increase the QE^3.
@ Amun
America
Canada
Austrailer
Have all passed the same laws.............prob have differant name.
Folks need to understand
When the Gov says they have your back and you are insured if the bank gets into trouble they do not have your back at all.
When the bank gets into trouble any deposit you have mean you are a creditor.............and as such thay can take your deposit and make good the bank.
hey presto..................the bank did not go bust.....................so no claim!
You say so beacuse you're smart but the 99% aren't. Most of those will redeposit their ramaing savings and beg for for the next rape.
@ The central planners
Well no one is smart..................but granted some more than others.
My guess would be if they were "Smart enough" to pull it out in the first place.................they wont be putting back in.
And those that did not pull it out......................have smartend up
JMO
Good News for the Greeks : Banks Open on Monday !
Bad News for the Greeks ? : How much they limit withdrawls & how much of your money is left in your account ?
Correction:
Only the uninformed or unintelligent still have any serious money in a bank in Greece at this moment.
Plus:
Opening banks and letting people withdraw larger sums are two completely different pair of shoes.
well, if I were a Greek, I would immediately grab all money from the bank accounts. But then, I am too informed and I took all my savings from banks long ago. Only my salary is coming to my bank account and I always immediately withdraw all the money, as soon as they arrive. This way, if something happens, they will only be able to take away one my salary at worst, but not my savings. Besides that, I started to spend less money on everything: I dont need any iphones and similar Western crap, sorry fake capitalists, I dont consider myself a consumer any longer in the world you created. The less I spend, the sooner it will all collapse.
Of course I need some fun in life, but I decided that I will spend my money on things like for example holidays in Russia:-) I will not support any stupid Western bankster economies anymore. And there are more and more defiant people in Europe, I know a group of defiant Brits, who decided to organise vacations for Europeans in Crimea:-) They say: we are just a citizens organisation, no business organisation, so sanctions dont apply to us. Nobody can tell ordinary citizens where to go. Take that FED, take that ECB!
Monday = bankrun day.
New national Greek celebration day.
Fireworks optional.
Good day to be a street vendor for sure! There will be line ups...long line ups.
Complimentary molotov with every gyro.
Welcome to Monday Money Marathon!, lets meat our contestants, the Greeks, know for long distance running, insufferable long war campaigns and now all moderned up is the money run. Coming to a theatre near your bank.
Bank Run Day! Riot Dogs get a free milk bone and a Spiderman towel. ;-)
Were the riot police getting paid during the bank holiday?
Doubtful they have any faith in their politicians.
Well it's a good thing the ECB gave the Greeks more heroin in exchange for a night with their Daughters!
For a minute there it looked like the drug dealers might get chased out of town and sanity and morality resotred.
The problem is the FSA is the Mob!
It’s human nature.
This is the reason why when the EMP strikes the CONUS, I’m starting with the next door neighbor.
A bank used to be a place to store the value of people's effort & talent.
Should they be lawfully be called 'banks' now?
they won't open before the bail-in
Bet this doesnt happen, without extensive capital controls. how can 800 million last even till lunch as Haus stated......
bunch of pussy's...
over it...
why r they not hanging their politicians...
oh wait - in amurica??????
keep in the bank only the minimum needed to service current bills - anyone who lives in an insolvent country that keeps more than that in any bank is yet another data point in proving that humans are the dumbest species on the planet
It will all be outflows...no inflows that is for sure...
I feel sorry for the lady who is in charge of New Accounts..she is going to get shitcanned next week....your job is gone....good luck
They have BOXES full of unused Spider Man towels sitting in the back room, too.
It really will be difficult, in future, to feel sorry for any of those who don't withdraw every last Euro.
Greece will become cash and carry - just as it should.
Does anyone have faith in banks, bankers or the global financial system?
Not me.
Sadly Batman Millions upon millions of people all over the globe have utmost faith in "their bank". I find it mostly a generational issue. Majority of the USA boomer set for example still trust their bank, their government, their tee vee, and that their way of life will never change. They have been trained well and will wonder what has happen all the way up to the point when the the waves wash over them. Encouraging though are the Gen X up to Y generations, not all but most do not trust any of the above and that is a step in the right direction. They are much more difficult to program and tend to question authority more directly. Some see through the facade without being shown the flaws, and to me that is most refreshing.
Know your enemy
AD
I bet they don't have any faith left and I would highly recommend the Greek people to withdraw everything they have left before all is gone.
One trend you see in propaganda media is they will not picture people scrambling for their cash in front of a bank except the OAP's for their pensions.
You have to be one sad mofo to keep anything in these banks. Greece has just had a coup of the banking system.
Fascism is the only word I can describe the outcome.
Bank Sprint.
You are going to see a whole country go blackmarket....it will all go cash...
100% correct!!
The loss of faith in the banking system is one thing. That, coupled with the implementation of new VAT taxes, will drive the Greeks to withdraw all of their savings and shift to new black markets.
If there is one the the Greeks have become quite adept at over the years, it is evading taxes.
Maybe I'm just being hopeful, but I bet this whole thing collapses inside of a month. We have not heard the last of this shitshow by a longshot...
I think you're right. The Greeks have a lot of faith in cash and right about now their hatred for bankers and banking couldn't possibly be any higher.
They'll probably be thinking
"What do I need the bank for? These are not really Greek banks anyway, they are institutions owned by foreign thieves. They hate us. They rob us. They capture OUR money and will only let us have whatever amount of OUR money they think they can live with. FUCK THAT. I DO NOT NEED THE BANK. IT DO NOT NEED IT TODAY AND I WON'T NEED IT 4 YEARS FROM NOW." (caps because they are thinking angry, lol)
My greatest hope is that Greeks will abandon the banks entirely and drain 100% of their money out of these insanely evil corporations. They literally don't need the fucking banks. In fact, the opposite is far more realistic... the banks need the Greeks' money desperately, because it is the lifeblood of their fractional lending schemes. Without that deposit base the bank cannot exist So if the banks desperately need the Greeks' money, what better way to ram a great big grenade up their asses than to deny them that money until the bank fucking explodes, like it should have in the first place. Banker shit everywhere, that's what the world wants to see. Banker shit and blood everywhere.
It seems people have forgotten the good old local credit union. Those little institutions work like magic... the community helping itself by lending to those within that community can do something productive with the loan. Local credit unions are the answer, not only in Greece but world wide.
... meanwhile, I wonder if they have baby-parts banks like they do at Dr. Deborah Nucatola's Planned Parenthood franchises ... >>> "VIDEO shocker: Dead baby parts 'harvested' during partial-birth abortions... sold to biotech companies for 'scientific' research... Profiteering from sales of baby brains, hearts and intestines" ... >>> http://www.naturalnews.com/050412_organ_harvesting_partial-birth_abortions_baby_parts.html and here too: >>> http://www.washingtonpost.com/politics/undercover-video-shows-planned-parenthood-exec-discussing-organ-harvesting/2015/07/14/ae330e34-2a4d-11e5-bd33-395c05608059_story.html
Which Monday???
<Yawn>
I'll take "opportunity to withdraw all they have" for $100 Alex....
If they hire Caitlyn as a spoketrans, I am sure confidence will be restored.
We could also send in a brigade of infantrannies to re-assure them.
Too bad they aren't smart enough to introduce the Drachma on their own, without the banks involvement. They could use it for domestic purposes, within Greece, and separate their economy from the Euro. Allow the people a domestic currency they can use to buy what they need, and push the Euro out gradually, as a currency for investors or international trades.
As long as their economy is Euro-based, they are at the mercy of people who really seem to dislike them. With an in-house currency, at least they can still function domestically no matter WHAT games Brussels decides to play with them.
It should have been done already, and Greece should be using both currencies. In fact, re-introducing the Drachma should have been one of the first things they did. It would have loosened the hold the Euro has over their economy, and perhaps have eased the anxiety over the banks closing. People wouldn't panic as easily over being denied access to Euros if they knew they could buy food, medicine, etc with Drachmas under the control of their own government.
But they stuck with the one currency, NOT under their control, and of course went into panic when suddenly they weren't sure they could GET their Euros out of the banks.
They need bridge financing during the transition because as soon as word gets out of a new Drachma bank accounts evaporate and banks fold. Who knows who would provide that. Russia maybe? Plus there would be a massive spike in inflation when the new Drachma floats at 0.05 Euros.
Greece would be guaranteed years of misery, and thats assuming the EU doesn't do everything in their power to beat them down even more as example to the remaining PI(G)S.
If a country does not have control of their own currency, then they are at the mercy of foreign powers.
"Common sense is not so common as generally supposed."
The most effective riot would be sucking the blood out of those banks. Force the collapse and make the people's collective voice heard. Instead of standing in an ATM line for $60, everyone can form a line around Parliament.
If the Greeks don't empty their safe deposit boxes and empty every penny from their accounts and go to gold, silver and bitcoin then they deserve to get everything stolen from them.
Too late
Even for the safety deposit boxes
But perhaps a last lesson for those in the rest of Europe who learned nothing from the Cyprus bail-in/
Holding Eurocash in any form is bad because even more QE and even more agressively will happen now
But holding Eurocash in a bank is simply mad
The vicious circle of QE - reserve currency dumping - more QE - more dumping = Weimar Republic "wheelbarrow money"
http://www.google.de/imgres?imgurl=http%3A%2F%2Feconomyincrisis.org%2Fwp-content%2Fuploads%2F2012%2F09%2Fweimar-300x162.jpg&imgrefurl=http%3A%2F%2Feconomyincrisis.org%2Fcontent%2Fquantitative-easing-did-not-work-for-the-weimar-republic-either&h=162&w=300&tbnid=pu9kmDPHWreqBM%3A&docid=xIYEUoiRBe9MqM&ei=xNinVaizMsHxUPrdhgg&tbm=isch&iact=rc&uact=3&dur=1253&page=1&start=0&ndsp=19&ved=0CD8QrQMwCmoVChMIqKWFm4bgxgIVwTgUCh36rgEB
I think those stupid morons who are still keeping some of their possessions in the banks deserve to lose it all!
Don't forget that Greece went bankrupt 5 years ago! 5 years has passed and imbeciles are still keeping their possessions in the banks who are bunkrupt! How much is still left, 120 bn euros?! Not a small amount at any rate, and certainly not for the Greek's! Really stupid! But I reckon it won't be nearly as stupid when those stupid, ignorant, gullible simpletons called libtards in the West lose all of their possessions they foolishy though was safe in the crime centers and that goverment was watching their back! ehehehehe
I've written down my suggestions more than once. If you are within the EUR and keep your account within the "bounds" of the EU, you're bound to loose. I warned the Greeks after the cypress bailout and wrote don't you think this will stay an exception.
If you like you can start you journey about my "claims" here: http://fdominicus.freecapitalists.org/2011/09/10/deep-trouble-greece/
http://fdominicus.freecapitalists.org/2011/06/30/greece-saved/
Just look for the year and then see what has happened. It's clear for Austrians it's impossible to accept for EU politicians (well correct no actual government does get that)...
I just cite from the given links:
"Now without a really reduction of the debt and without budget surplus they have no chance. As I wrote just the payments last year and this year are probably twice as much as every Greek earns a year. So the debt will probably raise up to 180 – 220 % of the GDP and Greek is not known of being a big exporting country. Indeed they earn their money more or less with tourism…."
That was in 2011 and now where are we now and that after "debt reductions" of a few hundred billions. Greece does not have changed anythin within this 4 years now and you can see that change is absolutly crucial.
take ECB money on Monday and stuff it under your matrass.
Last chance!!!!!!
Of course they have faith, they are Greeple sheeple.
there's a solution to that: reopen the market of the Greek Govvies. after the Greek White Flag, it might hint on people that at the present time they constitute a claim SENIOR to the FMI, ECB etc. when they reach 60-70 again, reduce the haircut, and release another 2 Bn. UR to the greek banking system. Rinse. lather.repeat.
It'll all go full burn, people will get out what they can , as ever when once a bank has shut its doors on them. I'll be surprised if the extra lasts 3 days.
Dear Greek people,
If you don't have it, you don't got it.
Liberty is a demand. Tyranny is submission..
But then you should know that by now.
They will open for deposits only. You know...
1. Tsipras and Syriza are beyond useless. No local confidence in these swindlers so my guess is no confidence in banks
2. You know as soon as those banks reopen everyone will be heading to empty out their safe deposit boxes