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Greek Bank Deposits Plunge By €5.5 Billion In September: Biggest Monthly Drop Ever
We had a feeling that the modest upward blip in Greek August deposits by corporations and households, to the tune of €1.4 billion, was a "transitory" event. It was. According to just released data by the Bank of Greece, the September collapse in gross deposits from €188.7 billion €183.2 billion was the largest ever, and took the total to an amount last seen in June 2007. Indicatively Greek deposits peaked at €237.8 billion in September 2009. Said otherwise, in addition to being massively undercapitalized, banks cash in the form of deposit liabilities has plunged 23% from its all time highs. Look for this number to continue dropping month after month as more and more Greeks move their cash offshore. Additionally, the ECB announced that financing to Greek banks in September was €77.8 billion while Greek reliance on the "temporary" Emergency Liquidity Assistance program hit €26.6 billion according to Bloomberg. With every additional deposit outflow, expect ever more money to be needed to keep the Greek sham of a banking system afloat, and more and more Germans to follow in Jens Weidmann's footsteps and start getting very, very angry.
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Who were the fools putting in €1.446 billion into Greek banks during August 2011 ?
Ben and Timmah?
The ECB via some SPIV?
why doesn't the EU go after Goldman SAchs for selling Greece swaps to hide its deficit, so it could get in the union? Oh right, if they crush GS, the economy would collapse, and US Congresspeople would lose in the election.
GS owes EU taxpayers $$$
A pox upon the house of Goldman SAchs!
#occupywallstreet.
They cant go after goldman sucks and greece, because every single southern european country did it too.
But that's the @#ASF problem. Goldman Sachs conducts these questionable dealings, and it has primary dealer status, and is recognized as a TBTF bank, implying that if it goes down, it'd lead to systemic collapse.
So GS is untouchable, as it continues its de-facto criminal dealings. And taxpayers are on the hook, if deals go bust.
Why the @#$# do regulators give a near criminal enterprise global financial immunity? Arggh. makes me so mad.
#occupywallstreet.
Stage 2 in Kubler-Ross. There, there. It will pass.
Greece tried that gambit, about one year ago. The threat lasted only over a week-end, until it was revealed that 1) Greece invited GS to Greece to do 2) what Goldman had been asked to do previously by several other EU members. That was not the first weasel move by the zeropeans, and many have followed.
You are obviously underinformed about this issue. Continue to mindlessly rant, it is your birthright.
Uhmm you are. Or should I say you and all the other American tax payers.
You must use an intermediary bank to convert fiat to Gold and Silver when buying on-line.
You, if you pay taxes
rats are fleeing the ship. at least the smart rats.
"Look for this number to continue dropping month after month as more and more Greeks move their cash offshore."
Well then. All is well. They can leverage the deposits and buy Greek and Italian bonds. I think this is a big positive.
I have a question.
Why doesnt the EMU plan an orderly transition of greece out of the Euro. Otherwise doesnt everyone know that the transition out will be disorderly? Everyone knows it is inevitable now. The greeks are taking all their money out, that which isnt needed to pay immediate bills.
Why are they all going to allow a.disorderly exit and say " we couldnt see this coming?" No way will greeks pledge national assets as collateral.
simple one word answer is contagion
It seems if they start early enough they could kick out portugal and greece, and they would have saved some money they could then put toward ringfencing italy and spain. All the money they have already wasted on greece would have been a substantial addition to the EFSF.
if Greece exits, the rest of the PIIGs will be a target. And theremaining PIIGS--Italy in particular-- bond yields go up, they won't be able to rollover their debts, and they will go bust. And if they go bust, then the EZ, and Euro are finished. And if the Euro is a failed currency, then you have a global systemic collapse. That's the contangion the ECB fears. We are close to that point. weeks/months away.
Because the money-changers want their odious debt paid back.
Who you gonna call when the money's all gone?
"Another senior government official said Greece's eurozone partners are demanding that five top Greek officials co-sign a letter reaffirming their commitment to the country's bailout deals and economic reforms, in return for the release of a vital euro8 billion ($11 billion) loan installment later this month. He said those officials are Papandreou and Samaras, the Bank of Greece governor, the new prime minister and the new finance minister."
Pathetic. A letter.
You were expecting maybe, the pledge of their left nut and first born child?
all their daughters, delviers as virgins when they turn 16! then maybe we will release some gold! buahahahaha
I am only looking at the month before, wasn't that a positive influx? It must be bullish.
I am only looking at the month before, wasn't that a positive influx? It must be bullish.
transitory - as in, on it's way to zero.
I mean can this market really stay a float for another month? It's already over bought, and clinging on to dear life... Call me a bear, but this is insanity...
I cannot see the graph the adds are over the top of it.
I have the same problem on the iPad.
Try the "Printer Friendly View" option at the end of the article.
Well, have you ever gone skiing?
Just imagine a ski slope with a little jump near the bottom.
pods
And is this not the absolute truth.
Anybody in Greece holding money in a Greek bank now faces two risks.
The collapse of the banks.
And the, now not insignificant, risk that Greece might exit the Euro.
An exit from the Euro should be their greatest worry.
They would be better having all of their Euros under the mattress now.
Why take the risk of having them forcibly converted in a new Drachma?
It's possible that a new Drachma might be just what the doctor ordered especially since the MO of most currencies now seems to be intent on winning the race to the bottom anyway. Greece would be overrun with tourists (Santorini redux!) and the velocity of the currency re that aspect would do the country a world of financial good in regard to what other hiccups would occur.
This is Bullish, NOT
I don't think this is going to make it to a "month after month" situation. As Mish explained yesterday, the rational action for Greeks is to pull their money from banks, and the run that this amounts to will bring it down. As they say, the collapse comes slowly, and then all at once:
http://globaleconomicanalysis.blogspot.com/2011/11/history-suggests-greece-will-freeze.html
Whoever has money in a greek bank right now isa an idiot...but then again.....
Its not about Greece anymore, and its never really about Greeece. Whatever they do, it simply does not matter anymore.
Today. We are all Greeks.
The nationality of the ECB’s managerial staff matters for the monetary policy of the central bank, two German and Austrian economists show in a new paper. The findings are so politically charged that the detailed results of the study are kept secret.
http://economicsintelligence.com/2011/11/01/the-italian-job-how-passport...
I would love to hear smoething about this from Tyler.
Yeah, and the "official line" is they're all supposed "to leave their passports at the door"........riiiight.
B
A
N
K
R
U
N....
What I want to know is why anybody keeps money in the Greek banks in the first place.
Normalcy Bias.
No shit, who would have thought the banks contained 5.5 billion euro?? Hello morons!!!
Your country is swirling the drain, convert Greek marked euro to N. euro and hide under bed.. Or alternatively you could buy some metal, high strength steel and lead perhaps..
How much money does Greece has in deposit? From the chart, it should be zero already. That's green shoots, it can only go up from here.
Anybody know why KITCO is down again. I've got some rumors, but no good source.
I heard they refuse to sell Gold right now, because it is trading too cheap vs Fiat
That never worried them before.
Greeks are suddenly big, if not the biggest, foreign owners of Swedish stocks. They have vacuumed Stockholm OMX for a place to put their money. Capital flight bitchez!
Germany - The Biggest Debt Transgressor In History....
http://germanywatch.blogspot.com/2011/11/germany-biggest-debt-transgressor-in.html
Greeks are cashing out their bank deposits for lots of reasons but my guess is that the primary reason is that so many have no income now and are now living on the last of their savings.
Well at least that's progress, compared to living on the Germans' savings.
i don't mind them living of my money when they fulfill the necessary conditions (see my comment above)
LOL! I'll take a piece of that action!
Greek population is about 11 million - so that works out to be 500 euro withdrawl for every man, woman and child in Greece. That is way too much to be only for survival for a month.
depends what you do with the money. 500 cannot buy you a lot of high-end hookers...
The market is down 50 pts. Quick we need a rumor.
3pm announcement will be Berlusconi's resignation.
BOOM! Fucking called it!
BOOM! Fucking called it!
BOOM! Fucking called it!
ahaha, uhuhu, wait i got it:
IRISH FIND POTS OF GOLD UNDER RAINBOWS! WILL USE FUNDS TO SUPPORT EFSF!!
Leprechauns form Occupy Dublin in protest.
I am so sick of stupid EUROPE just GO AWAY.
FAZ to the moon here $50+
Pay attention all, this is a prelude to what will happen here. That is a promise.
Yet the Irish banks are sucking way more ECB financing + money from ELA program than Greek banks. Yet EVERY pundit tells how Ireland has "turned the corner". Lol!
From a moral perspective I would take any Greek over any large cap US bank. Greece might be slightly les solvent than US, but from an integirty perpspective Greece banks have their US counterparts by exponents. Hopefully eveything will crash and CEO's will have to hide in drainage ditches from homicidal masses with wobbly cellphone video cams chanting religious banter.
At least Greece has islands and retsina to pledge as collateral. Banks have paper and bonuses...
Maybe the missing deposits are up in there.
this is why they did a bond deal yesterday...6.3 billion euros, guaranteed by the government, so they can fund it at the ecb...circular!
Time to start the countdown.
How many more Fridays are there 'til a "bank holiday" is declared?
"If Greece had defaulted, there would have been a domino effect carrying everyone away,"
"Allowing Greece into the eurozone in 2001 was a mistake."
Nicolas Sarkozy
Interesting how he says 'if'.
If looks more and more like when, and then what..??
Italy next in line..??
the beginning of a fantastic meal:
1. Greek salad
2. Some pasta
3. Paella
4. Coq au vin
5. To close up some Queijo da serra, together with a glas of whiskey.
And after all that I probably will go out and help myself to some German beers!!
that's like a 4000+ calorie day. i don't eat that much and i work out daily.
about that sustainability thing...
Here's an interesting article abt Greece:
http://www.nytimes.com/2011/11/07/world/europe/in-greece-economic-crisis...
From the article:
That the Greek economy is in a downward spiral from a relentless program of austerity is well known. In October, Greek manufacturing had one of its sharpest declines ever, and this year overall production is expected to contract by more than 6 percent. What has not yet shown up in the official figures, though, is the extent to which the crisis atmosphere has brought the economy to a virtual standstill.
Auto sales have essentially stopped and are at their lowest level since 1993. People who do have cars have trouble with the expenses of operating them. In the last three months, the number of uninsured drivers increased by 500,000, bringing the total to 1.5 million.
I just got the minutes from today's meeting at the TPTF ministry of Ponzi. "Ok. Dow down 64 now. That's close enough. Churn it between -90 and -30 for a few more hours then have the computer ramp it up on another absurd rumor our MSM is putting in the headlines to a +90 close again and call it good. Then do it again tomorrow and the next day. Let's close at the day high everyday this week to really freak people out but no more moves up or down over 100 for another week. We don't want to get too cute. It will be hilarious. Huge Christmas bonuses for all your hard work."
It seems to me that if Merkozy et al were serious about preserving the Euro at all costs, they would have found a way to institute currency controls on the Euro in Greece and all of the Eurozone for that matter. Without currency controls, hypothetically, all Eurobank depositors could move all their money out of the Eurozone. Could this interminable dog and pony show denial and delay have anything to do with the fact that what each of them is primarily working on is their own ultimate plan to exit the Euro????
I'm playing with my State Senator. I sent her an email about the ECB Fed Deposits rise and now I just sent her this chart.
I cant wait until I get a response. The state of WI doesnt have a clue whats coming...of course none do but I have been warning her for about 2 months. Here are my oringinal emails to her in September Youtube vids on it...
My Email to her: http://youtu.be/sSknThHgnHI
He call to discuss:http://youtu.be/wBWL4vW_kM8
GOOD!!!!
What about getting a credit from a Greek bank? You put your euros abroad (or convert them into gold, dollars etc), wait some months and return the credit in neodrachmas. Of course, you must have "friends in high places".
I bet this thing is going on now ("compadres" obtaining loans in order to transfer the funds abroad, waiting for the devaluation) This is the likely consecuence of the ECB insistence in keeping the Greek financial system liquid.
Why worry about NeoDrachmas? The drama isn't about whatever liquidity lets the Greek economy putter along - it's going to about NeoDMs.
Is Greek money staying in the EU or going to Russia/Israel?
With every dollar you spend or borrow or save, you vote!
You don't have to be registered. You can be a convict, who can't read or write. You can be an illegal, a tourist or a child.
If you don't like something, don't spend money on it!
But what of the government you ask? Should I not pay taxes? Of course not. The great blind spot in humanity is that no matter how much evidence is presented showing who really controls the government (did you see the interview of Abramoff on 60 minutes?), the people will forever cutoff their nose to spite their face.
Hey ZHer's. Anyone know when the contagion kicks off? I Like FAZ here :-)
FAZ is a strong buy now....
The more I look at US debt crash correction and future gold/silver charts,
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...
http://www.tfmetalsreport.com/comment/78024#comment-78024
http://www.tfmetalsreport.com/comment/78025#comment-78025
Something does not fit with end of 2013 or beginning of 2014 being the date of US debt crash correction. So the anwer could be:
that defaults of USA Treasury to FED will happen in discrete (DISCRETE as in DISCRETE scale, not as in discrete presence) way starting from November 2012,->and that is the reason of Gold price connection with this election cycle, then FED buys more, then Treasury defaults again etc. It will be kind of a new "permanent" way of handling country debt and monetary issues combined.
I just wander what other consequences it will bring to USD value ( vs. commodities, other currencies), will it become fashionable way to handle part of debt in every country (except Europe where partial debt corrections happens as country by country defaults as there are no local central banks). Than of course every countries currency will devaluate in a similar manner to the USD except that USD will still be sitting on bank balance sheets even if they will receive a default in JPY ( e.g. Japan). So despite US correcting its debt to FED , USD still will have the longest (one of the longest ) lifetimes among currencies. The currencies that can outdo USD will be those where total government debt and other debt in the economy is small relative to GDP, and where USD etc is not too prominent on the balance sheet of central bank.
Also, does it MEAN Ron Paul can make it to president with coming recession etc and consequently exploding debt? Or his idea will be stolen by Obama?
"Congressmen and Presidential hopeful Ron Paul, who chairs the House sub-committee on monetary affairs says the Fed should not be holding this “ficitious” debt any longer against US tax payers."
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=860#p35004
Assuming Greeks are just moving money overseas without tracking where it goes is just as stupid as the sell side guys saying that with all the outflow from equities, there is a ton of money on the sidelines just waiting to return. I call bullshit - I know all too many who simply used the money to get by, having no other options (as far as their thinking goes).All those corp profits are that money - -and the profits are there due to cost cutting, so no more is coming in for people to spend....
I wonder if the people fleeing the European Banking Titanic are buying gold and silver.
I wonder.
I will say that Chinese and Indians know that its smart to buy gold. Americans, maybe not so much.
http://www.gainesvillecoins.com/news/490/FT--Chinas-September-Gold-Impor...
http://www.gainesvillecoins.com/news/474/Mine-Web--Indias-Gold-and-Silve...