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Greek Bank Run Update: Up To $1 Billion A Day Now
Yesterday, we did an update of the Greek bank jog, when noting that between €100-€500 million per day was being withdrawn from Greek banks based on Kathimerini reports. 24 hours later the jog has become a trot with the most recent estimate from Reuters now estimated at nearly double: "Combined daily deposit outflows from the major Greek banks have reached 500-800 million euros over the past few days, with the pace picking up as the election draws closer and rising noticeably on Tuesday, two bankers said." This is roughly $1 billion a day in the upper case, and a number that is approaching 0.5% of the entire documented €170 billion (now likely much less) deposit base.
Deposit outflows at smaller and medium sized banks were running at 10-30 million euros.
"This includes cash withdrawals, wire transfers and investments into money market funds, German Bunds, U.S. Treasuries and EIB bonds," said one banker, who spoke on condition of anonymity.
Fears that Greece may have to quit the single currency and return to a weak drachma have fuelled a steady stream of withdrawals by companies and businesses alarmed at the prospect of seeing the value of their deposits cut sharply.
The result of the election, called after a previous vote in May failed to produce a government, remains too close to call, with the conservative New Democracy party running neck and neck with radical leftist SYRIZA.
Both groups say they want Greece to remain in the single currency but SYRIZA has pledged to scrap a 130 billion euro bailout agreement signed in March which has imposed some of the toughest austerity measures seen in Europe in decades.
At the daily rate of doubling the "estimate" by Friday the trot will be an all out sprting and Greece will be experiencing a $4 billion in outflows. We wonder which banks will have any cash left at that point.
How much of this is fact, and how much pre-election rumormongering to scare people from voting against Syriza remains to be seen. Due to the polling moratorium it is impossible to get any grasp of which is the most popular party in Greece currently, even if the polls that had been released had the accuracy of an Excel random number generator.
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Here we go again with the frigging bitcoin bullshit again. Real monetary coins are made from gold and silver that you can hold in your hands. Bitcoin is another PONZI scheme.
Just seems logical to me.
Paper and metal currencies are in the domain of the physical, digital currencies are in the domain of the internet. To take fault with one or the other simply because of what they consist of doesn't make sense.
Also, you'd have a hard time getting gold/silver/cash through any major airport to another country in quantity. With bitcoin, my money is always available wherever the internet exists, and for where it isn't, stores easily on a USB drive. No parasitic bank transfer fees is nice too.
If anyone was serious about undermining the central bankers power - they'd shift over and transact solely in bitcoin. Yes, this means not transferring it to any tertiary currency. Pricing it in dollars/euro/whatever is just a distraction from its true value.
Just 15% over the month... Plus 3% is fatal...
Not the mention the paypal transactions buying gold and silver...
Spain and Italy better hurry up with those capital controls.
Snowball meet hill
Bug meet windshield
Ouzo
where's that gin blossom when I really need it?
"Did you enjoy the performance?"
Sounds like the Greek banks have a case of The Trots.
Plato's Revenge.
Therefore, they must ask themselves, what is the banking equivalent of reducing the amount of fiber in their diet ?
Here's hoping the Greeks shove it up the world's ass Sunday. If they were smart, Athens would short the shit out of the Euro at 400x leverage....and then conspire to elect Syriza. Boom! Debt problem solved.
slewinomics indicates coming soon: swiss francs instead (?)
(these will be legit) this is the printing order (?)
same-same, right? pegged
angela and the ECB EU need do nothing; those cashing outa the banks will either take the CHF paper or come back another time; the SNB can just take over the banks that go under due to "terms of endearment or boilerplate dating from charlemagne which has never been superceded under romanPolanskiLaw..." or gunpoint or whatever
now, what would you prefer, and are you married?
if/when the EU gets bifurcated, the SNB will still be there for greece, and anyone else who splits over the shits; even germany!
now go shopping, BiCheZ! and buy tyler something wet!
"Fears that Greece may have to quit the single currency and return to a weak drachma have fuelled a steady stream of withdrawals by companies and businesses alarmed at the prospect of seeing the value of their deposits cut sharply."
Fears about Greece leaving the EMU? There's an app for that! More bailout + money printing.
Greece will never leave the EMU, not gonna happen. The debt:GDP will approach infinity before that happens. Or rather, the EU, imbued with new powers of taxation and borrowing, will assume most of the Greek (and other nations') debts long before Greece would leave.
Like The Chairsatan and all the archangels--yes, even the Europeans we love to disrespect so much--would let this shit get out of their hands. Must. keep. money. flowing.
You must be in Greece these days to understand why. Every single TV and radio station are spreading intravenous terror in megadoses. That, if they don't vote the parties "EU want" Greece will be out by Monday and that it is a matter of weeks to have :
-no food
-no drugs
-no oil
-no money in banks
-no life
The guys in the banks are saying to the customers, especially to the old people "keep your mouth closed, but by Monday you will not have access to your money".
The news are only consisted of interviews and statements by foreigners and Greeks saying what will happen if Greeks don't vote the "european" parties, which are the two parties that ruled the country for 40 years and which are so corrupted that they had voted a law according to which nobody can prosecute a minister for corruption, which is still in effect. So you have to vote for them, the most hated of all politicians every single generation in the country can remember, if you don't want to go to hell - according to what every European persona said during the past weeks. No one will forget in his life this WW I type bombardment of terror from all sides, yours included. Not anyone of you can imagine what is really happening here. We live something like mental raping of the entire people, no kidding. If it will be succesful, and I believe that it will, every single european country is going to feel that way sometime in the very near future: Something very big and powerful wakes up guys.
indeed June 18th will be THE DAY so hurry up until 15th
What picslaks wrote is absolutely true, there is no exaggeration. To me it's unprecedented and on a such fearsome scale that I'm furious and awed at the same time. I just can't describe it fully...I'm partly reminded of the video montage(I think it was the original Zeitgeist video iirc) after 9/11 of Bush/Cheney/Guiliani/et al using terrorist/terrorism in speeches in ridiculous repitition; it's that * 1,000. It literally is "mental rape" continously, morning, noon and night, day after day after day.
I will be shocked-and proud-if my fellow Greeks reject New Democracy under such obscenely intense applied pressure.
Really, if we could somehow prevent the 60-and-older crowd from voting(which also has become a running joke here courtesy of an eccentric journalist Stefonos Hios("Lock them in their homes! Tell them a nuclear device went off!... link: http://www.youtube.com/watch?feature=player_embedded&v=F3ZSZ7Zh7vk)), New Democracy would be crushed despite the terror campaign being waged.
A billion here, a billion there, pretty soon.....................
"Hey brother, can you spare $2,000,000,000? Wait, just make it $1,000,000,000. That way, I'll owe you $1,000,000,000, and you'll still owe me $1,000,000,000, and we'll be even!"
Those are some pretty big wheelbarrows.
Modern day bank-run is of course electronically. These are not your average Greek citizens who take out millions of Euro in cash every day. Ordinary Greeks don't have this kind of money.
So the question is. Who has the money and where is the money being transferred to - electronically of course.
For all we know this could be foreign corporations operating from Greece which are taking their operating cash positions out of Greece and to their headquarters. Greek's multimillionaires have their money offshore anyway. Many of them in Cyprus.
Cyprus? Their banks are bleeding cash too and need a bailout.
SO WHO THE FUCK IS MAKING THE WITHDRAWALS AND WHERE THE FUCK IS THE MONEY GOING?
TARP, BAILOUT, TWIST, LTRO1 & 2 and so on... and the system is still fucking bleeding like a pig all over the fucking place.
The leadership is completely useless on both sides of the pond. Capital controls should have been put in place in September 2008 before any fucking tax money was entering the system to bailout the crooks.
Eine gute Frage, walküre.
If I were a Greek, I would route it through a German bank to Treasury Direct.
They left out people fleeing into Disney Dollars.
MBD for President 2012!
Run Papoulopoulos, Run...