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Greek Bank Run Continues Unabated: €3.8 Billion In June Outflows Bring Total Deposit Base To Mid-2007 Levels

Tyler Durden's picture




 

Who could have possibly imagined that in the month of June, Greek banks would see yet another major deposit outflow. Alas, according to just released NBG data, June deposit outflows by households and corporates amounted to €3.8 billion, bringing the total down to just €188 billion. This is a whopping 20% decline in total Greek bank deposits since January 2010. It also means that each increasing outflow merely plants the seeds for even more outflows in the next month as less and less confidence (and cash) remains in Greek banks. As a reference, an equivalent outflow in the US, based on the total $8 trillion in total domestic deposits, would imply a $160 billion monthly outflow, enough to put two Bank of Americas out of business. We expect to see comparable data out of the Bank of Italy, and then all other pigs, as billions of euros are being pulled from deposit accounts in insolvent countries and deposits in Switzerland. Naturally, it also means that European efforts to quell the panic are failing abysmally.

 

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Tue, 08/09/2011 - 10:03 | 1542275 Iriestx
Iriestx's picture

200 point bounce in about 90 seconds.  I smell QE3 announcement frontrunning.

Tue, 08/09/2011 - 10:06 | 1542282 dbach
dbach's picture

And how many people will crap their pants if the announcement is only continued accomadation for an extended period?

Tue, 08/09/2011 - 10:17 | 1542339 Iam_Silverman
Iam_Silverman's picture

"And how many people will crap their pants"

The buyers at the Fed's SOMA desk who are trying to telegraph QE3 to the Queasy public?

Tue, 08/09/2011 - 10:50 | 1542467 Sudden Debt
Sudden Debt's picture

Can' compute!

Tue, 08/09/2011 - 10:04 | 1542279 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

*****What Business is Wall Street in?

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The only people who know what business Wall Street is in are the traders. They know what business Wall Street is in better than everyone else......""

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Tue, 08/09/2011 - 10:05 | 1542281 DonnieD
DonnieD's picture

The Greeks should outsource this data point to the BLS. Then we will see massive inflows.

Tue, 08/09/2011 - 10:10 | 1542297 Drag Racer
Drag Racer's picture

of course Greece would then be revised

Tue, 08/09/2011 - 10:08 | 1542288 oogs66
oogs66's picture

august 20th is big date for greece...they need a lot of money to pay what they have due...they probably get it, but better safe than sorry

Tue, 08/09/2011 - 10:09 | 1542293 Sudden Debt
Sudden Debt's picture

HAHAHA!!

THEY DIDN'T GET THE BERNANKE SPEECH MEMO!! THE ECONOMY IS SAVED!!

How stupid will those who withdrawl their money feel when all their effort is for nothing....

 

Tue, 08/09/2011 - 10:10 | 1542298 chubbar
chubbar's picture

Meanwhile a flurry of paper gold is being sold in order to corral the gold market and show all is fine with the fiat money system.  P.S. please drive the price down so I can get more physical at a discount with my bernanke bucks!!!!

Tue, 08/09/2011 - 10:11 | 1542301 g speed
g speed's picture

say it again and again--he who panics first panics best.

Tue, 08/09/2011 - 10:11 | 1542302 Caviar Emptor
Caviar Emptor's picture

All getting converted to gold. 

Oh and Goldman's $2,500 target by year end? They got it from me, here on ZH (2,400) :-) 

Tue, 08/09/2011 - 10:11 | 1542306 choorles
choorles's picture

coming to a bank near you!!!

educate your friends before this happens to your bank!!

buy silver. buy bitcoin. www.silverrevolucion.com

Tue, 08/09/2011 - 10:16 | 1542328 GD
GD's picture

Remember what Argentina did? Default, seized pension money, froze bank accounts to raise cash.....Yesterday the Greeks imposed no more short selling in the market. Defaults and freezing assets are a real possibility...In panic Govts will do whatever they want..

If I were a Drachma dude, I would have long ago taken all the cash out of the banks and liquidated assets to cash and gold.

I reality that is what a lot of people are doing all over, including myself..

Tue, 08/09/2011 - 10:16 | 1542331 youngman
youngman's picture

Why does a bank need deposits or customers when you have a government to bail you out and pay your bonuses????

Tue, 08/09/2011 - 10:20 | 1542348 Iam_Silverman
Iam_Silverman's picture

"Why does a bank need deposits"

To fund their prop trading desks?

Tue, 08/09/2011 - 10:28 | 1542372 max2205
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All reports are hereby canceled

Tue, 08/09/2011 - 11:48 | 1542739 Peter K
Peter K's picture

Eur/CHFunder 1.0500 ;)

Explains where the Euro's are migrating. If I got paid in Euros, and could buy 1 CHF for my 1 Euro, I would take that deal. In a heart beat;)

Wed, 09/14/2011 - 05:16 | 1667558 chinawholesaler
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