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Greek Bank Deposits Have Biggest One Month Outflow Ever In May

Tyler Durden's picture




 

It's official: all those rumors of unprecedented deposit withdrawals in May as Greece was heading into one then another parliamentary election were true. According to just released NBG data, May deposit outflows were €8.5 billion, or the highest on record, bringing the local banks' total private sector deposit base to just €157 billion, the lowest since January 2006, and represents a massive 5% outflow of the entire deposit base as of the end of April. And keep in mind rumors of epic bank jogs and trots did not really pick up until weeks into the second Greek election two weeks ago. At this rate of outflows the entire Greek banking system will have zero deposit cash left in under two years. So aside from the 'details', Europe is all fixed and stuff.

 

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Fri, 06/29/2012 - 11:27 | 2573353 SilverTree
SilverTree's picture

Ouch.

Fri, 06/29/2012 - 11:38 | 2573399 Pladizow
Pladizow's picture

First dominoe!

Fri, 06/29/2012 - 12:06 | 2573506 battle axe
battle axe's picture

"First domino", I agree but the SOB will not fall like it should. 

Fri, 06/29/2012 - 12:14 | 2573545 Mark Carney
Mark Carney's picture

what I am having a hard time understanding is , why were there INFLOWS in other months. 

 

Obviously someone did not get the memo to get out of dodge.

Fri, 06/29/2012 - 12:46 | 2573682 old naughty
old naughty's picture

i am more interested in the outflow...geewez, they've been at it for, how many moons now? And yet they're still doing it?

And they are broke?

Fri, 06/29/2012 - 16:33 | 2574553 Herman Van Rompuy
Herman Van Rompuy's picture

The state is broke, the people are not, the situation is pretty much the same in all of the mediterranean countries.

The situation in my country, Sweden, is the opposite.

Here the people are broke but the state is not.

But combine all the debts (personal, companies etc) and suddenly we´re in worse shape than Greece if you look at the total debt to GDP ratio.

Interesting yes?

When the housing bubble bursts over her (cause it hasn´t yet) we´re gonna take some serious pain I´ll tell you.

/With love from Herman Van Rompuy

Fri, 06/29/2012 - 12:35 | 2573647 icanhasbailout
icanhasbailout's picture

that domino is glued in place by dried hangover vomit

Fri, 06/29/2012 - 11:28 | 2573356 eclectic syncretist
eclectic syncretist's picture

Good!

Fri, 06/29/2012 - 11:27 | 2573357 AvoidingTaxation
AvoidingTaxation's picture

Bullish!

Fri, 06/29/2012 - 11:29 | 2573359 Cognitive Dissonance
Cognitive Dissonance's picture

More to follow.

The plebs are beginning to get it.

Fri, 06/29/2012 - 11:29 | 2573360 Undecided
Undecided's picture

http://www.youtube.com/watch?v=jVm3Yzjq8zE

 

Ron Paul yesterday on Fractional reserve banking.

Fri, 06/29/2012 - 11:30 | 2573366 duckarooni
duckarooni's picture

GERMANS CLAIM VICTORY.

At first glance, it looked as though Chancellor Angela Merkel gave up several core demands during the EU summit. But did she? A closer look reveals a clever retreat to secure greater gains. To find the summit's true loser, one must look no further than Paris.
(spiegel)

Fri, 06/29/2012 - 11:34 | 2573386 GeneMarchbanks
GeneMarchbanks's picture

Mmmmm... that was nice. Anything about troops amassed on borders to please our Anglo friends?

Fri, 06/29/2012 - 11:37 | 2573395 NotApplicable
NotApplicable's picture

Well, what do you know, Germans will now get all of the lounge chairs at the pools throughout the EU without even having to resort to using towels any more.

Merkel is pure genius. The rest of Europe, meanwhile, simply will not stand for this. With Summer just starting, it's about to get ugly. Really ugly.

Fri, 06/29/2012 - 11:30 | 2573367 HaroldWang
HaroldWang's picture

That runs contrary to FT report yesterday that saw the last two weeks, Greeks depositing money back into accounts.


With a new government in place and market focus shifted to Spain and Italy’s debt issues, Greece has been enjoying a bit of welcome breathing space.

The country’s banks have been seeing steady inflows since the election two weeks ago.

Fri, 06/29/2012 - 11:36 | 2573392 j.tennquist
j.tennquist's picture

Indeed, that election was a real confidence booster.    They replaced substandard begger clowns for inferior corrupt panhandlers.      

Fri, 06/29/2012 - 11:38 | 2573401 NotApplicable
NotApplicable's picture

Well, they had to do something, don't you know.

Fri, 06/29/2012 - 12:41 | 2573668 pasttense
pasttense's picture

It's not contrary: This is the end of June; the post was about the data at the end of May. Thus for the FT to say things have changed in the last 2 weeks is not contrary.

Fri, 06/29/2012 - 11:31 | 2573371 Shizzmoney
Shizzmoney's picture

Weeeeeeeeeeeeeeeeeeeeeeeeeeee!!!!!!!!!!!!!!11111111

Fri, 06/29/2012 - 11:31 | 2573373 monopoly
monopoly's picture

We have all the facts. But the deranged bearded one behind the curtain does not want to hear it. I think most will agree it will hold together with toothpicks, cheap glue and bare string until November. And to fight this insanity even though you know the truth, and short this market is nuts. The only scenario worse is to use leverage, either short or long. But most of them are already gone.

Fri, 06/29/2012 - 11:31 | 2573374 j.tennquist
j.tennquist's picture

I hear a sound like a massive toilet flushing in the distance.  Oh well.. no matter.  Buy the market, it's so cheap!

Fri, 06/29/2012 - 11:32 | 2573377 LongSoupLine
LongSoupLine's picture

 

 

Don't worry, Germany will recap those Greek banks!

(wait...how much gold does Greece have again?)

Fri, 06/29/2012 - 12:22 | 2573583 machineh
machineh's picture

What is this 'will' word, kimosabe?

Germany IS recapping those Greek banks via TARGET2, as we speak.

OPA, it's Friday, let's party!

Fri, 06/29/2012 - 11:33 | 2573381 muppet investor
muppet investor's picture

No problem. Another EURO summit will fix that.

Fri, 06/29/2012 - 11:33 | 2573383 disabledvet
disabledvet's picture

If this doesn't look like a "run on a country" and not just the banks then I don't know what does. Now will someone answer me this. HOW DO I DISCOUNT FOR THAT? Gold absolutely makes senses as the ULTIMATE truth barometer because the "growth" I am allegedly going to have would have to make the Roaring Twenties look like snail paced growth. Am I suppose to be a currency expert in order to even buy in Europe? If the alternative is 500,000 barrels of oil coming of North Dakota I think the choice..."chooses itself."

Fri, 06/29/2012 - 11:38 | 2573398 tocointhephrase
tocointhephrase's picture

I PROMISE TO PAY THE BEARER...oh sorry, thats £ sterling, wrong currency.

Fri, 06/29/2012 - 11:41 | 2573407 Nachdenken
Nachdenken's picture

And are the two week  targets presumably DAX 6980, DOW 13100, EUR/USD 1,28 - maybe that is where the runs are ending in.

If everything is going up, so should global PMIs and consumer spending.  What crisis, what slowdown, what crash  

Why doubt the Groups of 7, or 17, or 20 or more recently EG4 (Italy, Spain, France, Germany).

We are too critical, too concerned, too cynical.  And perhaps right, only not yet.

Fri, 06/29/2012 - 11:42 | 2573411 Abner Doon
Abner Doon's picture

FYI

Wells Fargo Advisors INTERNAL USE ONLY: What is 4front?

http://hartzman.blogspot.com/2012/06/wells-fargo-advisors-internal-use-only.html

George Hartzman to Steven Butz, Director – Investment Adviser & Broker Dealer Examinations, North Carolina Secretary of State Securities Division

http://hartzman.blogspot.com/2012/06/george-hartzman-to-steven-butz-director.html

From letters sent to Michael Mashburn, SEC and Daniel Stefek, FINRA, from Tasha W. Sheehy, Enforcement Attorney, State of North Carolina Secretary of State

http://hartzman.blogspot.com/2012/06/from-copy-of-letter-sent-to-michael.html

Please cover this.

 

Fri, 06/29/2012 - 11:46 | 2573419 jannewmx
jannewmx's picture

Italy up 6.4 points. I'm laughing at all you bears. You guys are probably grumpy bears who lost out on all the bullish movements. Suck it up. Waiting for a market crash is like waiting for a meteorite to hit the earth and end all the suffering. It won't happen.

Fri, 06/29/2012 - 11:48 | 2573427 globozart
globozart's picture

Who needs deposits if they can print (or POKE) money as they please...

Fri, 06/29/2012 - 11:50 | 2573436 Inthemix96
Inthemix96's picture

All joking aside boys and girls.

Just think of the fun and games we will have when enough of the whole fucking world(western mind), find out what has been screwed from us.  You're gonna have fucking nut jobs knocking these fuckers off left right and centre.You will walk down the street and see bodies hanging from lamposts, while kicking heads no longer joined to their bodies into the gutter.

Just imagine a life without chosen money masters?  It must be fucking bliss.

Fri, 06/29/2012 - 11:52 | 2573447 Snakeeyes
Snakeeyes's picture

Yes, the Greek deposit chart does not bode well. It looks like a missile in its final arc below striking its target!

http://confoundedinterest.wordpress.com/2012/06/29/angelas-angst-germany-surrenders-and-allows-direct-bailout-of-spanish-banks/

Fri, 06/29/2012 - 11:53 | 2573449 ATG
ATG's picture

While people are busy making plans for 4th of July Independence Day BBQ Beach fireworks,

worth reading someone who actually went through a bank holiday for perspective:

http://www.archives.gov/exhibits/eyewitness/html.php?section=11

Just took windfall profits on SPY Jul 131 Calls and averaging into QQQ Jul 64 puts:

http://richcash8tradeblog.blogspot.com/

 

Fri, 06/29/2012 - 12:01 | 2573476 No Euros please...
No Euros please we're British's picture

But surely now the election fixed everything for Greece, the deposits are back in the bank.

Fri, 06/29/2012 - 12:25 | 2573595 machineh
machineh's picture

" /sarc "

I, too, support the strong drachma!

Fri, 06/29/2012 - 12:22 | 2573584 Jack Sheet
Jack Sheet's picture

Where's the problem ? If Ireland can print its own euros,

http://ftalphaville.ft.com/blog/2011/01/18/461881/the-mechanics-of-irish...

then so can Greece.

And, according to Jim "IQ 250" " pigtail" Rickards, all the bank runs are harmless because the banks to which the deposits are transferred just lend the funds back to Greece.

Fri, 06/29/2012 - 12:26 | 2573600 machineh
machineh's picture

True dat. 'TARGET2,' bItCHeZ!

Fri, 06/29/2012 - 13:55 | 2573921 jez
jez's picture

Tyler has been posting these histograms for a few months now, and this time he talks of the "massive 5% outflow" during the month of May.

 

I continue to be surprised by how little money the Greeks are removing from their accounts.

 

Consider: on May 6 they had the first of their two recent elections, with an inconclusive result. No proper gummint for most of May. There was news of food lines, of hospitals running out of drugs, of the government looting university bank accounts in order to pay bills, of the tourist trade doing badly, of one town turning to barter, of rocketing unemployment, and so on. That was the background.

 

And yet amidst all this, the average Greek decided during May that, for every 100 euro he had in the bank, he really ought to trim it to 95? That "massive 5% outflow" seems tiny to me, given the circumstances.

Fri, 06/29/2012 - 14:21 | 2574011 John_Coltrane
John_Coltrane's picture

Ever hear of the law of inertia:  objects in motion (or bank deposits or equity positions) tend to stay in motion (not withdrawn or closed) unless acted on by outside forces (capital controls).  Inertia and inaction (deer in the headlight syndrome) are very powerful in humans.  Its flee or freeze and too often the sheepie freeze.  Still, in fractional reserve system, you only need 5-10% of all deposits to be demanded to result in insolveny.  How many closed out their Washington Mutual accounts (I did) months before its insolvency-answer very few?  Ain't leverage great!

Fri, 06/29/2012 - 14:12 | 2573984 ZZR600
ZZR600's picture

That's still over 15,700 euro for each Greek man, woman and child, hardly poverty stats!

Fri, 06/29/2012 - 15:34 | 2574312 3x2
3x2's picture

It is worth considering that, as with any other collapse, there are those who get out early and those that (try to) get out when things become too obvious.

The Greeks I am (UK based) familiar with moved the family "Euro's" out a long time ago - no rioting in front of closed banks for them.

 

 

Fri, 06/29/2012 - 20:15 | 2575077 honestann
honestann's picture

Once people realize the game is definitely going down, the currency will positively FLY out the doors... until the government closes them.  That's called "hyperbolic", then "flatline" AKA "you lose, customers".

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