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Has The Greek Bank Run Started?

Tyler Durden's picture




 

While the long-term decline in bank deposits over the past 3 years has been well documented both on Zero Hedge and elsewhere, it is the most recent, acute post-election phase that has not gotten much coverage. Minutes ago Bloomberg sent out a notice that things in Greece may be on the verge of the final collapse. From Bloomberg: "Anxious Greeks have withdrawn as much as 700 million euros ($893 million) from the nation’s banks since the inconclusive May 6 election, President Karolos Papoulias told party leaders yesterday, according to a transcript of the meeting posted on the presidency’s website today. Papoulias said he got the information from the head of the Bank of Greece, the central bank, George Provopoulos, according to the transcript." While this was likely a negotiation talking point to facilitate the formation of the government, the reality as we now know is that there has been NO government formed, which now means that the bank run will only get worse. Needless to say, a Greek banking system which is now virtually shut out of any extrenal funding except for the ELA, where it has a few billions euros in access left, will be unable to deal with hundreds of millions in deposit outflows.

This may be the beginning of the end for Greece, just as Buiter and later JPM warned over the weekend.

And courtesy of Russian_market, here is a picture of the first Greek ATM lines:

 

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Tue, 05/15/2012 - 11:38 | 2427235 Fips_OnTheSpot
Fips_OnTheSpot's picture

Bullshit.. already 300bn gone abroad.

 

that's not "Started" at all

Tue, 05/15/2012 - 11:57 | 2427283 slaughterer
slaughterer's picture

Lagarde jawboning a few areas where the Troika is open to negotiation already.  Sorry guys, I am covering all shorts.  These Eurodummies want to keep the game going somehow.  

EUR/USD 1.2650 target got "Lagarded" today.

 

PS. to the people downarrowing me, wait until the 3:30pm Eurorumor(TM) today to see my point.  

Tue, 05/15/2012 - 12:03 | 2427412 MillionDollarBonus_
MillionDollarBonus_'s picture

This is EXACTLY why a failure to bail out Greece would be CATASTRPOHIC for the global banking system. Because people do not have their deposits guaranteed by the ECB, they are panicking and withdrawing precious liquidity from the banks. These financial institutions are simply TOO BIG TO FAIL, and no amount of whining from doomer libertarians or Greek “protesters” will change that. The ECB, Federal Reserve and IMF NEED to step in and put a stop to this nonsense once and for all. Insolent Greek populism and ignorance has been tolerated for far too long. “Not accepting” the bailout, is simply not an option, I’m afraid. Greek whiners, and doomer goons need to suck it in and GET this.

Tue, 05/15/2012 - 12:06 | 2427454 Pladizow
Pladizow's picture

You gotta switch it up buddy, you've become quite predictable!

Tue, 05/15/2012 - 12:34 | 2427669 sessinpo
sessinpo's picture

I think he's related to Max Fisher. Maybe they are one in the same.

Tue, 05/15/2012 - 12:35 | 2427686 Al Huxley
Al Huxley's picture

He's funnier than Max Fischer.

Tue, 05/15/2012 - 12:46 | 2427739 Zero Govt
Zero Govt's picture

MillionDollarBankrupt is hilarious

i like he wont "tolerate" bad attitude or people taking their money out of bankrupt banks ...what a world MDB would build for us, is his family all zombies already?

Tue, 05/15/2012 - 12:58 | 2427810 Hard1
Hard1's picture

Where are the pics of the greek bank lines?  there is a longer line here in the ATM outside my office

Tue, 05/15/2012 - 17:40 | 2429095 NumNutt
NumNutt's picture

Funny, I was thinking the same thing...

Tue, 05/15/2012 - 13:12 | 2427891 emersonreturn
emersonreturn's picture

you're right, Max is really Timmy's fun side.

Tue, 05/15/2012 - 14:02 | 2428151 fuu
fuu's picture

Stretching the meaning of "fun".

Tue, 05/15/2012 - 12:16 | 2427519 shutupnsing
shutupnsing's picture

@MDB- I resemble that remark!

Tue, 05/15/2012 - 12:20 | 2427551 Matt
Matt's picture

Is that true? Europe doesn't have an FDIC equivelent? If so, that would seem really bizarre and irresponsible.

Tue, 05/15/2012 - 12:30 | 2427654 sessinpo
sessinpo's picture

Actually from a free market stand point, our FDIC is a joke and irresponsible. First off, banks are supposed to pay into the FDIC fund. Yet FDIC is horribly underfunded, with absolutely no chance of being able to cover a massive bank run in the US, 1T. The proper avenue has always been is through bankruptcy where other institutions buy the assets of a bankrupt corporation. That buyer would also be buying the liabilities, such as the deposits FDIC has simply turned into another social program for banks because if FDIC gets in real trouble, they have option of going to congress to beg for money, which means taxpayer bail out of guess who - the banks. Just another version of the same old story. Rinse, repeat.

Tue, 05/15/2012 - 12:41 | 2427716 trembo slice
trembo slice's picture

FDIC is certainly a joke, but wouldn't it be the depositors that are bailed out?  FDIC didn't come about until after the Gold Removal Act of 1933.  Which, if you think about it, makes sense; if money is sound how can you guarantee the money deposited would be redeemable on demand?  It is impossible to print more gold/silver so FDIC can only exist under a fiat-monetary system.

If there is no deposit insurance in Greek banks -- a bank run makes sense even with paper money.  However, in the US bank runs make no sense.  If you are guaranteed to be able to redeem your deposits (whether they print it or not) why would you need to rush the bank to withdraw your funds?  You're fucked either way if you haven't put your savings into something tangible.

Bank runs make logical sense if there is a gold standard.  If the bank has made more loans than they have the capacity to make and customers catch wind of this fact -- they need to hurry and withdraw their gold because when it is gone it is gone.

Tue, 05/15/2012 - 12:50 | 2427756 malikai
malikai's picture

Greece is fixin to be broke with no government. I don't think deposit insurance by the state would help them much.

Tue, 05/15/2012 - 14:29 | 2428269 Tortfeasor
Tortfeasor's picture

The idea of "no government" is where it all comes to a head. How can Greece institute a bank holiday without a government? This will be a slow motion revolution -- they've tipped their hand already.

Tue, 05/15/2012 - 13:32 | 2428005 Nozza
Nozza's picture

...perhaps people might not want to join the queue to get hold of their guaranteed money... they might fancy buying something to eat in the next few months

Tue, 05/15/2012 - 13:35 | 2428022 moneymutt
moneymutt's picture

bank runs only make sense when you people are worried about a shrinking money supply. Fractional reserve always gets carried away, and at some point money suply (debt created by banks) becomes suspect, and if there is no govt backing of deposits, bank run insues. Banks inherently run themselves to insolvency if not regulated, and even when regulated, still many collapse under their risky lending.

There was a run on money market funds in 2008 in US til govt put their full faith behind it up to $250k for each account. This was not paid for FDIC, it ultimately cost govt little, but saved whole population of losing retirement savings etc, scrambling to exhange money markets to bank accounts and thus crashing system, and the run stopped.

The FDIC is actually one of the better run, least corrupt agencies the US has, read some articles about it. It leads to great trust in system and is a pittance of the cost, even whe FDIC is underfunded by bank tax, compared to what we spend on much more wasteful, less useful things. It is a tiny sliver of the DoD budget. But average person not having to be a bank examiner before they depsot funds, average person not having to worr about bank runs, is a very valuable security.

For the best overview on how banks and private debt are THE money supply (swamps public debt) and how they always get carried away and crash and how this could possibly be controlled see Steve Keen, on good overview video is this http://www.debtdeflation.com/blogs/?p=7258

If private debt in Greece is collapsing via bank runs, this is taking way way more money supply out of their economy than EU can ever give in public bailout. Greece now will only get better when all the private debt defaults and they start over. This was avoidable, but given rich investers/bondholders in German and French banks never losing a dime on stupid loans they made to customers who clearly could have never paid them back, given these few 1000 richies were more important than entire population of Gree, this unfolding brutal jubilee is now their regular folks in Greece's best option, much better being debt slaves to the IMF in a moribond economy for 30 years.

Now greek CDS will kick in, the sellings of the CDS will not be able to pay and will have AIG all over again...

 

Tue, 05/15/2012 - 13:43 | 2428057 QQQBall
QQQBall's picture

FDIC... best run... blah blah blah... the FDIC front-loaded three years of premiums to banks; its a strawman - could never make good in the case of a  real bank run.

 

Remain calm, all is well...

Tue, 05/15/2012 - 18:52 | 2429371 BooMushroom
BooMushroom's picture

Like politics, most Americans are ignorant of high finance. They see the big FDIC placard (or NCUA) placard, and say "oh that's good to know." Perception is reality. At least until it isn't.

Tue, 05/15/2012 - 19:48 | 2429574 Sokhmate
Sokhmate's picture

I'd argue reality is perception.. until it isn't.

Wed, 05/16/2012 - 15:15 | 2432679 Matt
Matt's picture

So everyone who had money at WaMu lost all their deposits?

Tue, 05/15/2012 - 16:40 | 2428847 Marco
Marco's picture

Private debt doesn't collapse in a bank run, it collapses in the accompanying depression. The EU could easily give all the Greeks their savings and let the banks hold on to their reserves, it would only amount to a fraction of the current bailout ...

In fact if the stability fund did just that (up to some per person limit) for savings and pensions I think it would be a lot easier to get people to rally behind it ... saving the peons is cheap, the rich however are a bottomless pit.

Tue, 05/15/2012 - 14:11 | 2428206 sessinpo
sessinpo's picture

trembo slice                 2427716

"FDIC is certainly a joke, but wouldn't it be the depositors that are bailed out?"

 

Comment:

That would be true except for several things. The repeal of Glass Steagall which allows for investment banking and traditional commercial lending banks to be one in the same. TD has already exposed where Bank of America is using its $1T in deposits as collateral against investments it is making. That wouldn't have been allowed before. So in essence, the depositors, which are also generally tax payers would be bailed out but it would be the overall bank that is being bailed out instead of facing its bad decisions.

Referring to the gold standard, PM's were actually still used for foriegn exchange after 1933. It was just national use and where gold was confiscated whereas gold was nationalized (taken by the gov) and banks part of the FR system had to turn over gold holdings to the treasury. You should note that the US gov was still legislating laws regarding PMs. Most notably in the 1963 where the treasury was authorized to issue silver certificates. That was eventually discontinued.

FDIC could exist under a  non fiat system. It is supposed to be simply an insurance program. How it is designed is the problem. It is underfunded because the funds it collects from banks aren't enough to cover a catastrophic loss. It would be like a property insurer. Say someone loses their house because of a tornado. Well the insurance company pays and everything is fine. No bankruptcy or run on bank so to speak. But let's say a hurricane like Katrina hits and thousands of houses are destroyed. Well the claims overwhelm the insurance company. The company goes bankrupt or races to find addional funding (bond issues, stock issuance, etc.) The problem is that the way FDIC is designed (as with many government departments), FDIC's last resort is always the tax payer. This simple factor is what makes government inefficient, flawed and quite often corrupt. When things go bad, they always look toward raising taxes to pay for their mismanagement.

An additional thing that would end this problem banking system is fractional reserve. Just because you have a fiat system does not mean you have to have a fractional reserve system. Banks are way overleveraged and thus exacerbate a bank run.

Tue, 05/15/2012 - 16:42 | 2428861 Marco
Marco's picture

FDIC's last resort is the printing press.

Tue, 05/15/2012 - 13:27 | 2427978 Sauk Leader
Sauk Leader's picture

It is not a joke, your money is insured. I asked my banker and he told me it could take over 70 years to get my money.... Oh wait nevermind.

Tue, 05/15/2012 - 12:23 | 2427609 sessinpo
sessinpo's picture

MillionDollarBonus_                 2427412

"These financial institutions are simply TOO BIG TO FAIL"

 

Comment:

Nothing is too big to fail. However, things become to big to bail out.

You weren't the captain of the titanic in a past life, were you?

Tue, 05/15/2012 - 12:26 | 2427626 Rubicon
Rubicon's picture

Congratulations on winning cock of the day!

Tue, 05/15/2012 - 13:01 | 2427835 ProtectiveFather
ProtectiveFather's picture

I've been away for a while. Love the new avater, MDB. Keep keeping it real. Your satire is one of my favorite parts of ZH.

Tue, 05/15/2012 - 13:04 | 2427850 Winston Churchill
Winston Churchill's picture

Nice one MDB.

Time to change yor avatar to Dr.Mengele or maybe Rasputin.

Tue, 05/15/2012 - 13:11 | 2427887 ATM
ATM's picture

whether or not the Greeks accept more bailout doesn't matter. With or without bailouts the fact remains that the Greeks cannot repay their debt.

In the end everyone is going to end up paying for the irrational borrowing based on some mistaken future ability to pay.

What a bank run means is only that some people realize they can protect themselves somewhat from that repayment because ultimately repayment will come in the form of currency debasement.

 

Take the money now and spend it otherwise it wont buy anything later. Bailout now, bailou later all leads to money printing eventually. The longer it takes the worse it will be.

Tue, 05/15/2012 - 13:29 | 2427987 Iwanttoknow
Iwanttoknow's picture

Fuck global banking sytem.Fuck you.

Tue, 05/15/2012 - 16:12 | 2428757 Jason Bourne
Jason Bourne's picture

Hey Million Dollar Bonus - Go fuck yourself.
Its exactly that bullshit pragmatic punk thinking that has us nowhere four fucking years later in the USA.
Fuck you and catastrophic warning. You sound like that prick
"Insolent Greek populism and ingnorance has been tolerated for far too long" - Fuck you and from whatever status quo bullshit system you came from.
ECB and Federal Reserve and IMF need to step in - FUCK OFF. Was that clear enough for you?

You sound like that prick Hank Paulson.

What Greece needs is a total reset.

Oh and btw, normal entitled greek citizens are not exempt either. They need to understand that its not going to work that way anymore. Fuck them too.

yasu

Tue, 05/15/2012 - 16:59 | 2428951 lakecity55
lakecity55's picture

It is Hank.

I thought the ECB gave a kind of FDIC insurance to the Euro bank depositors, FWIW.

Wed, 05/16/2012 - 21:38 | 2433772 MeelionDollerBogus
MeelionDollerBogus's picture

Failure of the global finance-mafia system is good. It lets the rest of us actually have freedom. We don't benefit from how it works today.

Tue, 05/15/2012 - 12:02 | 2427413 vast-dom
vast-dom's picture

IS THIS ANOTHER GREEK CAPTION CONTEST?

Tue, 05/15/2012 - 15:38 | 2428574 spastic_colon
spastic_colon's picture

....you missed by 2 minutes

Tue, 05/15/2012 - 16:05 | 2428717 DeadFred
DeadFred's picture

As of 12:57 all I'm seeing is a moving toward the weighted average. I guess I (and everyone else) missed the rumor. I understand why you're jaded after sooo much BS has been shoveled at us but sometime or another the real thing will hit, This time is an excellent candidate. Still all in TZA.

edit- now two days below support. Real is becomes realer.

Tue, 05/15/2012 - 16:10 | 2428747 Peter Pan
Peter Pan's picture

There is nothing wrong with a bank run other than the fact that it exposes the shortcomings of borrowing short and lending long as well as that small problem of fractional reserve banking.

Tue, 05/15/2012 - 11:40 | 2427258 MunX
MunX's picture

You're late to the party my friend.

Tue, 05/15/2012 - 11:50 | 2427297 BigJim
BigJim's picture

Don't panic.

But if you do panic, panic early.

Tue, 05/15/2012 - 12:01 | 2427405 SilverRhino
SilverRhino's picture

Jeremy Irons in Margin Call said it best 

John Tuld: If you're first out the door, that's not called panicking.

Tue, 05/15/2012 - 15:42 | 2428596 MonsterBox
MonsterBox's picture

pull your cash out BEFORE the ATM/Bank Holiday.  it's only fiat, but it better than nothing.

Tue, 05/15/2012 - 12:57 | 2427791 Loose Caboose
Loose Caboose's picture

@jus_lite_reading

Your General Bert Video answers the burning question - What is Lee Marvin doing now?

Aside from that, there is nothing more despicable than whoring a "product", in this case, another "free" report in the midst of a global crisis - one that some believe may be an extinction level event - that will indeed take many innocent lives.

FOAD

Tue, 05/15/2012 - 13:22 | 2427956 jus_lite_reading
jus_lite_reading's picture

>>"What is Lee Marvin doing now?"<<

Came back from the grave...

I wasn't whoring anything caboose... This was a news article from Yahoo News

Tue, 05/15/2012 - 14:17 | 2428221 hedgeless_horseman
hedgeless_horseman's picture

 

 

"The lack of information is, however, a matter of State policy in Japan where it is now a felony offense to discuss negative aspects of either nuclear power or the Fukushima situation in particular."

Tue, 05/15/2012 - 14:30 | 2428270 jus_lite_reading
jus_lite_reading's picture

Oh yes... truth is teason. Never question authority. They have YOUR best interests first.

LMAO

GAME OVER

First footage of drones flying over Chicago confirm the S is about to hit the big fan in a BIG way...

NOW could Greece be the first kicker to start the derivatives bowl!?! HOLD TIGHT!! shhhhhhhhhhhhhh!

Tue, 05/15/2012 - 16:55 | 2428935 lakecity55
lakecity55's picture

"After conferring with our NATO partners, we have decided to let the PTB take control so we will not have a repeat of Greece anywhere else in the West. NATO troops are deploying to Alabama as soon as our conference here is finished. Now. please excuse, I'm late for my iodine pill."

--Barry The Gay

Tue, 05/15/2012 - 22:46 | 2430086 Vlad Tepid
Vlad Tepid's picture

That can't be the case because I've seen official reporting, not just discussion in Asahi Shinbun, Mainichi Daily, and NHK as well as cable channels.  Plenty of Op-Ed too...When they shut down the last plant last weekthere was a field day of anti-nuclear power reporting and pronouncements.

Tue, 05/15/2012 - 13:05 | 2427848 Dr. Kananga
Dr. Kananga's picture

+1
I will alert my finance ministers.

Tue, 05/15/2012 - 11:42 | 2427260 tekhneek
tekhneek's picture

Greek bank run, bitchez.

Tue, 05/15/2012 - 12:54 | 2427779 Zero Govt
Zero Govt's picture

where are they going to put all these Euros????

€890m, this month alone, under the mattress!!!

Tue, 05/15/2012 - 11:41 | 2427263 walküre
walküre's picture

But they made the bond payment of close to 500 mm TODAY.

Inquiring minds will want to know WHERE that money came from.

Crucial mistake was made imo. Their strategy to play hardball with everyone and go begging thou neighbour to pay your bills is back firing.

Tue, 05/15/2012 - 11:45 | 2427276 Tyler Durden
Tyler Durden's picture

The Greek Treasury which had €1.5 billion yesterday, and has €1 billion today

Tue, 05/15/2012 - 11:47 | 2427290 redpill
redpill's picture

If I were a Greek pensioner I'd be upset that the gov't just gave away a third of all the Euros their country is ever likely to see again.

Tue, 05/15/2012 - 11:53 | 2427323 Sudden Debt
Sudden Debt's picture

If you where a greek pensioner you should ask yourself how much taxes you ever paid and why you should still get a piece of the pie!

Tue, 05/15/2012 - 12:03 | 2427384 redpill
redpill's picture

"Because vee fooled za Germans hahahaah"

-Funny smoking Greek dude wearing sandals with socks

Tue, 05/15/2012 - 13:36 | 2428026 CCanuck
CCanuck's picture

"Geeneous, Genneous, Geneous."

From all the Helenic people of the world - "You're Welcome"

Mr.Panos

Tue, 05/15/2012 - 13:32 | 2427995 balanced
balanced's picture

That's probably true, and the Germans don't deserve to be paid back a single euro. They choose to take a risk in order to benefit themselves, and it went bad. That's why it's called risk -- stop your crying, and accept responsibility for your actions.

Tue, 05/15/2012 - 11:52 | 2427324 Buckaroo Banzai
Buckaroo Banzai's picture

Ruh roh, Shaggy.

Tue, 05/15/2012 - 12:01 | 2427389 DebtSlaveZombie
DebtSlaveZombie's picture

Actually, "Ruh roh, Raggy" is better....

:-)

Tue, 05/15/2012 - 12:11 | 2427485 CrockettAlmanac.com
CrockettAlmanac.com's picture

And I would have got away with it, too, if it wasn't for you meddling kids!

Tue, 05/15/2012 - 12:51 | 2427773 CaptainObvious
CaptainObvious's picture

The above quote is attibuted to:

 

A)  The Scooby Doo villain of the day

B)  Jamie Dimon

C)  Jon Corzine

D)  All of the above

Tue, 05/15/2012 - 13:02 | 2427834 Zero Govt
Zero Govt's picture

it's like Ireland ...fast as the ECB shovelled it into the Irish Banks the depositors were cranking it out of the ATM's

Tue, 05/15/2012 - 15:47 | 2428639 MonsterBox
MonsterBox's picture

ATM holiday coming.  just can't have sheeple "toppling" the TBTF banks

Tue, 05/15/2012 - 12:05 | 2427427 Village Smithy
Village Smithy's picture

Do we know for sure that the payment was made ie. do we have some happy bondholders?

Tue, 05/15/2012 - 12:43 | 2427721 walküre
walküre's picture

Is this commonly known on the ground in Greece? This is a recipe for desaster! They might as well forget about the 2nd set of elections and go straight into anarchy followed by martial law and a junta government.

Tue, 05/15/2012 - 13:06 | 2427863 Dr. Kananga
Dr. Kananga's picture

And the plan all along was?... :)

Tue, 05/15/2012 - 16:47 | 2428898 lakecity55
lakecity55's picture

Ummm, maybe in the old days. Today, it would be an ISAF with NATO troops. Might as well practice before they go to USA and kill the Americans.

Tue, 05/15/2012 - 11:46 | 2427282 smb12321
smb12321's picture

I read they had approx $1,5 billion "to play with".  This supposedly takes them down to a billion.  When we're going in debt $3.3 billions/day it puts it in perspective.

Tue, 05/15/2012 - 11:56 | 2427342 HungrySeagull
HungrySeagull's picture

That billion is gonna evaporate one way or the other.

Sure they paid today, but may have to dance the night away just to keep warm.

Bills are like children. Always more...

Tue, 05/15/2012 - 12:06 | 2427369 JustObserving
JustObserving's picture

US debtclock has debt increasing at $4.15 billion a day and unfunded liabilities by $19 billion a day at current rates. Just $23.15  billion growth everyday in the US of A.

Run, sheeple, run to the security of the dollar.

http://www.usdebtclock.org/

Tue, 05/15/2012 - 12:14 | 2427505 Olympia
Olympia's picture

Something serious should have taken place, so that the “Superpower" owes 15+ trillion dollars. Such a "broke superpower" has never been before. The world has never seen before "World rulers" who surrender to pain because cancer medication costs. 

 

http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html

 

.

Tue, 05/15/2012 - 13:29 | 2427986 EFNuttin
EFNuttin's picture

"Greece has defaulted on its external sovereign debt obligations at least five previous times in the modern era (1826, 1843, 1860, 1894 and 1932). The first episode occurred in the early days of that country's war of independence, and the last default was during the Great Depression in the early 1930s. The combined length of period under which Greece was in default during the modern era totaled 90 years, or approximately 50% of the total period that the country has been independent."  

I would be worried about the fiduciary responsibility of my fellow Greeks as well.  "Take my Euros?!  Get thee back to Berlin.  THIS IS SPARTA!"

Source: http://www.investopedia.com/financial-edge/0911/The-History-Of-Greek-Sovereign-Debt-Defaults.aspx#ixzz1uxUnwsAg
Tue, 05/15/2012 - 11:43 | 2427265 smb12321
smb12321's picture

This is a repeat of a repeat.  Who in their right mind would keep money in a Greek bank at this point?  The problem will be the run on the banks in Spain, Portugal and Italy when I imagine another boatload of Euros will magically appear.

Tue, 05/15/2012 - 11:51 | 2427318 BigJim
BigJim's picture

Indeed. When the rest of the PIIGS see what happens to Greeks who have left their euros in the bank, there will be bank runs all across Europe...

This could get amusing.

Tue, 05/15/2012 - 11:53 | 2427319 Byte Me
Byte Me's picture

Who in their right mind would keep money in any bank at all at this point?

Tue, 05/15/2012 - 11:58 | 2427382 Bam_Man
Bam_Man's picture

Why? For the interest, of course.

</sarc>

Tue, 05/15/2012 - 11:59 | 2427388 JLee2027
JLee2027's picture

Worldwide bank run - it's on!

Tue, 05/15/2012 - 12:02 | 2427401 Withdrawn Sanction
Withdrawn Sanction's picture

The idea of screen doors on submarines and Greek bank deposits suffer from the same problem...pointlessness

Tue, 05/15/2012 - 12:47 | 2427742 TWSceptic
TWSceptic's picture

Why not, it's guaranteed by many governments up to 100000 euro.

Tue, 05/15/2012 - 11:58 | 2427366 crouton
crouton's picture

you can pull cash out of a greek ATM from your spanish/german/french/italian account.

Tue, 05/15/2012 - 16:42 | 2428869 lakecity55
lakecity55's picture

Kirk: "Full speed on the presses, Mr Scott."

Scoty: "It's gonna blow, Cap'n."

Spock: "Captain, would it not be logical to declare a Holiday until we can derive more Di-Lithium?"

Tue, 05/15/2012 - 11:46 | 2427266 Cognitive Dissonance
Cognitive Dissonance's picture

I thought a Greek bank run was a given considering.

I guess this means the toga party is over? Or is it just getting started?

http://www.youtube.com/watch?v=c93n6PTrhoQ

Tue, 05/15/2012 - 11:55 | 2427353 RacerX
RacerX's picture

TOGA! TOGA!

They're beating the rush before the "New Drachmas". Lol.. Sadly, we will all be in this situation as some point. "on  long enough timeline.."

Tue, 05/15/2012 - 11:42 | 2427269 Nothing To See Here
Nothing To See Here's picture

Bullish!

Tue, 05/15/2012 - 11:44 | 2427273 GeneMarchbanks
GeneMarchbanks's picture

I often wonder what exactly the 'end' means in our present context. We've been situated in a clinically dead civilization for at least a decade or so and yet... these strange apocalyptic types are announcing the 'end' day after day...

Tue, 05/15/2012 - 11:45 | 2427275 tocointhephrase
tocointhephrase's picture

Yep, they come to me to buy Central London apartments, they have been over here in droves.

Tue, 05/15/2012 - 11:45 | 2427279 TrumpXVI
TrumpXVI's picture

Does anyone know how much has simply been withdrawn and spent by the out of work and the broke?

Tue, 05/15/2012 - 11:46 | 2427281 Slope of Hope
Slope of Hope's picture

Good time to trade Euros for Gyros.

Tue, 05/15/2012 - 11:48 | 2427291 Coldsun
Coldsun's picture

So inferring from this, electing the uber left, socialists and neo-nazis to government tend to be the final acts of desperation for a broke and entitled society? Good thing here in the United States of America...

Fuck. Last one out grab the flag.

Tue, 05/15/2012 - 11:48 | 2427299 Negro Primero
Negro Primero's picture
"The meetings between the President of the Republic and political party leaders on 13/05/2012"

Below is an English-language summary of the transcripts of the meetings held on 13/05/2012 between the President of the Republic, Karolos Papoulias, and the leaders of all the political parties that were elected to parliament following the 06/05/2012 elections, in an attempt to form a coalition government. Papoulias first met with the leaders of the three largest parties (Nea Demokratia, SYRIZA and PASOK) and then proceeded to individual meetings with the leaders of the Independent Greeks, the Communist Party, Golden Dawn and Democratic Left.

http://news.radiobubble.gr/2012/05/meetings-between-president-of-republi...
Tue, 05/15/2012 - 13:18 | 2427923 Colonial Intent
Colonial Intent's picture

"A first topic of discussion, raised by PASOK’s Venizelos, was the British-law bond that did not participate in the PSI and must be paid back by Wednesday 15 May"


Tue, 05/15/2012 - 11:51 | 2427305 Gloomygus
Gloomygus's picture

If it hadn't started, you just started it - thanks for helpfully pointing out the "anxious" withdrawals to date, the lack of a backstop for depositors, and really double points for using "bank run" in the headline. So it has been written, and so it shall be done.

Tue, 05/15/2012 - 11:53 | 2427320 slackrabbit
slackrabbit's picture

lol

A Tyler said 'Enough', and low and behold the people did listen and go down to their ATMs and being withdrawing their moeny; and there was much jaw-boneing and knashing of Merkyl's and Monty's teeth...

Tue, 05/15/2012 - 11:53 | 2427322 Tyler Durden
Tyler Durden's picture

You are right. It is best for the people not to know there are ATM lines, and that the President has told, and Bloomberg has reported, there has been a deposit outflow scramble.

In fact, living in a box with no news from the outside world is best in life.

Tue, 05/15/2012 - 11:57 | 2427365 HungrySeagull
HungrySeagull's picture

You mean the box in the alleyway being shoved by the line of people trying to make room while waiting to withdraw?

I suppose the smart Greeks have gotten TFO while the getting was good. What is left is the unwashed masses of the poor, clueless and soon to be angry Greeks.

A big fat bank run is good for the cleansing.

Tue, 05/15/2012 - 11:59 | 2427374 RacerX
RacerX's picture

Conan knows what is Best in life

http://www.youtube.com/watch?v=6PQ6335puOc

Tue, 05/15/2012 - 12:00 | 2427391 PR Guy
PR Guy's picture

We were so poor when I was a kid, we used to live in a box in the middle of the road. Looks like we're heading back there. History has a nasty habit of repeating itself.

Tue, 05/15/2012 - 12:04 | 2427415 Floordawg
Floordawg's picture

Ignorance is bliss. Knowledge is misery...

If you didn't get your dumb-ass to an ATM in time.

Tue, 05/15/2012 - 12:53 | 2427785 iDealMeat
iDealMeat's picture

I +1'd you for the Avatar..  Kirk and McCoy in some forehead tennis.. You'll literally expanded my mind with that one..  thx..

 

Tue, 05/15/2012 - 12:18 | 2427527 Al Huxley
Al Huxley's picture

No need to live in a box without news from the outside world.  MSM is there to tell everybody happy stories and assure us all that EVERYTHING WILL BE OK, NO NEED TO PANIC.  LEAVE YOUR MONEY IN THE BANK, IT WILL BE FINE, DON'T WORRY ABOUT THE GREEK GOV'T ONLY HAVING 1B EUR LEFT, SURELY THEY CAN'T RUN OUT OF MONEY.

Tue, 05/15/2012 - 12:27 | 2427636 JackT
JackT's picture

You should include the bloomberg link in your post...just sayin'

Tue, 05/15/2012 - 11:55 | 2427332 Gloomygus
Gloomygus's picture

Do you ever hae a hard time sleeping from all the "observation" you do? Think of all those Greeks, struggling in the birthplace of democracy, now literally running to the bank. All those little kids wondering why Mommy and Daddy look so forlorn.

Tue, 05/15/2012 - 11:57 | 2427354 Tyler Durden
Tyler Durden's picture

We have been warning people about what is currently happening for 3.5 years. If to some, such as yourself, this is news, you really should get our of your ivory tower more.

Tue, 05/15/2012 - 11:59 | 2427386 Cognitive Dissonance
Cognitive Dissonance's picture

Damit Tyler. Stop playing with your food and just eat.

Tue, 05/15/2012 - 13:29 | 2427981 CCanuck
CCanuck's picture

That is Funny!!!!! Thanks CD.

Tue, 05/15/2012 - 15:56 | 2428690 MonsterBox
MonsterBox's picture

like a cat with a trapped, exhausted mouse

Tue, 05/15/2012 - 12:05 | 2427449 Gloomygus
Gloomygus's picture

Tyler, I am a solo attorney with 3 small children who was crushed into bankruptcy in 2008 by a bank that called my consolidated SBA note, 90% backed by the US government, before the ink had even dried. I lost my firm (when the same bank called my landlords office bldg note), my house (when Wells Fargo pretended to be restructuring the mortgage up to the day they foreclosed), and everything else. My ivory tower looks a lot like a rented Victorian home.

Tue, 05/15/2012 - 12:20 | 2427578 Likstane
Likstane's picture

Looks like you should have gotten in line earlier.  What's anybody need a duo attorney for anyway?  

Tue, 05/15/2012 - 13:17 | 2427919 ParkAveFlasher
ParkAveFlasher's picture

WAAAAH

Tue, 05/15/2012 - 13:22 | 2427950 ProtectiveFather
ProtectiveFather's picture

Buck up, little camper: inflation will take care of any remaining debt. Now stop emulating our government with your borrowing habits!

Tue, 05/15/2012 - 14:50 | 2428335 Day_Of_The_Tentacle
Day_Of_The_Tentacle's picture

My my.. the wolves are sure having a feast today.

I left you an answer on the other thread, and I am curious to hear your answer.

Tue, 05/15/2012 - 12:08 | 2427458 tekhneek
tekhneek's picture

I would like to directly submit an article as soon as possible, subject to editorial approval of course.

-Gloomygus' biography

Tue, 05/15/2012 - 12:25 | 2427616 fuu
fuu's picture

+1

15 whole days!

Tue, 05/15/2012 - 13:19 | 2427941 WillyGroper
WillyGroper's picture

raff out roud. And ur student loan debt is how much GG?

Tue, 05/15/2012 - 12:01 | 2427404 fuu
fuu's picture

Your Faux Concern TM is touching.

Tue, 05/15/2012 - 12:12 | 2427492 Ben Dover
Ben Dover's picture

For argument's sake, what do you think should have been/ought be done? No sarcasm, just interested in how you feel that the news should be handled.

Tue, 05/15/2012 - 12:19 | 2427537 Al Huxley
Al Huxley's picture

Fuck, do you think they'd be better off if the DIDN'T run to the bank?  And then find out that whatever small deposits they thought they had are now gone!  Wake the fuck up!  Bad news doesn't go away just because you ignore it!

Tue, 05/15/2012 - 16:36 | 2428842 lakecity55
lakecity55's picture

 Screw the ATM. In this type of situation, I would just rob the bank.

Tue, 05/15/2012 - 23:16 | 2430213 jerry_theking_lawler
jerry_theking_lawler's picture

i'm ready for Bonnie and Clyde.....

Tue, 05/15/2012 - 17:49 | 2429135 Poor Grogman
Poor Grogman's picture

 

Gloomypus lkes to mope about how he lost his coin in the rigged ponzi casino.

He has mothing to take out.

But will instead support the ponzi to the bitter end, prefering to see others wiped out also.

Misery loves company.

 

 

Tue, 05/15/2012 - 13:03 | 2427839 CaptainObvious
CaptainObvious's picture

Yeah, but think of all those little Greek kids wondering why Mommy and Daddy look so frantic and desperate...those are the Mommies and Daddies who didn't get on the ATM line before the Euros ran out.  I'd rather be forlorn than frantic and desperate myself. 

You ever hear the saying "don't shoot the messenger"?  It applies here.  The Tylers are just reporting what is happening, dolt, they didn't cause it.  You want to assign blame, start with the ECB, the EFSF, the IMF, and the drunken sailor government who spent Greece into the hole...you know, the morons who made all the big decisions that so fucked Greece.

Tue, 05/15/2012 - 11:49 | 2427306 pleseus
pleseus's picture

That's only a couple of people.  They need the money to buy eggs.

Tue, 05/15/2012 - 11:49 | 2427307 slackrabbit
slackrabbit's picture

ITS ALL UNDER CONTROL....for the MPs, cos they moved their money out last year

Tue, 05/15/2012 - 13:30 | 2427983 sethstorm
sethstorm's picture

Nothing says another country couldn't nullify that move by some way or another.

Tue, 05/15/2012 - 11:50 | 2427315 Sudden Debt
Sudden Debt's picture

1. Transfer your funds to visa
2. Open paypal account
3. Buy silver and gold for cheap.

Tue, 05/15/2012 - 11:52 | 2427317 Grey-Ghost
Grey-Ghost's picture

OK - is a photo of few people in front of an ATM (where you can take a limited amount of money, vs. emptying your account due to your "run on the bank) really worth a post?

Tue, 05/15/2012 - 11:53 | 2427331 Tyler Durden
Tyler Durden's picture

There is a reason why we use the BOLD FONT:

From Bloomberg: "Anxious Greeks have withdrawn as much as 700 million euros ($893 million) from the nation’s banks since the inconclusive May 6 election, President Karolos Papoulias told party leaders yesterday, according to a transcript of the meeting posted on the presidency’s website today. Papoulias said he got the information from the head of the Bank of Greece, the central bank, George Provopoulos, according to the transcript."

Tue, 05/15/2012 - 12:02 | 2427417 buchesky
buchesky's picture

You do have to admit though, that it's a pretty lame picture.  It's a typical lunch-time line, not some mad rush...

Tue, 05/15/2012 - 12:30 | 2427647 Sudden Debt
Sudden Debt's picture

I had the same confirmation this week from a friend that almost all ATM's are empty. There aren't any lines to see at all.
It just shows "out of order".
Shops and restaurants are refusing credit card and ask for cash to. Greece is now stacking euro's and the news is spreading like wildfire.

Remember also that Germany had the weimar period but that greece has known the same history already a couple of times and there are stil people who remember it!

Tue, 05/15/2012 - 12:47 | 2427740 Nothing To See Here
Nothing To See Here's picture

Difference between Weimar and Greece is that Greece can't print the money alone unless it breaks from the euro. Until then, it can only beg and loot its citizens.

Tue, 05/15/2012 - 13:42 | 2428049 bugs_
bugs_'s picture

they were out of bed before lunch

Tue, 05/15/2012 - 12:06 | 2427453 Tenshin Headache
Tenshin Headache's picture

But still, the scariest photo of the lot has 5 people standing in line. Doesn't exactly support the case. Could be lunch hour.

Tue, 05/15/2012 - 12:17 | 2427520 spooz
spooz's picture

And I bet more of the withdrawals were simply transferring out of Greek bank into another financial institution.  Maybe one that offers other currency choices.  Doubtful people were lining up at ATMs.

Tue, 05/15/2012 - 13:10 | 2427886 Diablo
Diablo's picture

not doubting the facts, but the pic is misleading. anyone whos ever gone to greece knows the banks are only open 5 or so hours a day, and people line up to go there...even during good economic times. heck, go out in manhattan during lunchtime and there are longer lines at those ATMs than those pictured here.  

Tue, 05/15/2012 - 11:53 | 2427327 I Am Not a Copp...
I Am Not a Copper Top's picture

11:30 express right on time!!!

Tue, 05/15/2012 - 11:56 | 2427334 blabam
blabam's picture

People in Greece still have money on their bankaccounts? F'n numbnuts.

Tue, 05/15/2012 - 11:55 | 2427338 Joe The Plumber
Joe The Plumber's picture

Maybe i am wrong

Maybe there is no more can to kick

But juncker did say in an interview today that greece would be given leeway. Its on Bloomturd

I think that german hard line just melted away and renegotiating a new bailout will commence

Tue, 05/15/2012 - 11:59 | 2427376 HungrySeagull
HungrySeagull's picture

Pass the beer... works every time.

Tue, 05/15/2012 - 11:54 | 2427339 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

This will allow the ECB more breathing room to print more since the cash will not be on deposit.  The supply will tighten because there will be no money velocity due to limited fractional reserve lending.  The ECB will make the most of this situation, while Greeks store their cash under the mattress inside their burning house.  Good luck, Greeks, but remember, paper burns.

Tue, 05/15/2012 - 11:54 | 2427341 Hallpass2012
Hallpass2012's picture

you can't even have a bank run with infinite liquidity, the only run that can happen is if everyone uses there notes to buy hard assets

like gold or some other asset class...

Tue, 05/15/2012 - 12:21 | 2427585 Al Huxley
Al Huxley's picture

The ECB has infinite liquidity.  The FED has infinite liquidity.  The Greeks, if they withdraw from the EU and go back to the Drachma will have infinite liquidity.  Right now, they don't have infinite liquidity.

Tue, 05/15/2012 - 12:45 | 2427727 catacl1sm
catacl1sm's picture

"infinite" liquidity + hoarding hard assets = hyperinflation. Good times.

Tue, 05/15/2012 - 12:52 | 2427767 Biosci
Biosci's picture

False.  If this is the case:

...almost all ATM's are empty. There aren't any lines to see at all.  It just shows "out of order". Shops and restaurants are refusing credit card and ask for cash...

(h/t Sudden Debt, above), then all those liquid electrons sitting at the bank have zero velocity, and are starting to look pretty solid.

Tue, 05/15/2012 - 11:54 | 2427343 robertocarlos
robertocarlos's picture

Can those Greek issued Euros be refused?

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