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Has The Greek Bank Run Started?
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 From Bloomberg: "Anxious Greeks have withdrawn as much as 700 million euros ($893 million) from the nation’s banks since the inconclusive May 6 election, President Karolos Papoulias told party leaders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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I'll just shut up then
You were getting bitch smacked because you were infering that reporting what is happening is causing what is happening. Not only is that illogical, it's downright wrong.
All I am doing is pointing out truth, anf that is all I will ever do.
I wonder who had CDS positions betting that Greece's stability would worsen yesterday? How much did you make om your fearmongering? Buy yourself something nice - gold is the way to go as the ultimate in fearmongering is imminent.
+1 because that's the first intelligent thing you said today.
What took them so long. I would have withdrawn my Euros ages ago. I might even (gasp) have exchanged them for US dollars, although it would be smarter to buy precious metals. I fear however that most Greeks have just moved the euros to other European banks or converted them into worthless greenbacks (thus only helping to delay a repeat of the Greek tragedy in the US).
I don't know but the 11:30 ramp thing is off to the moon today.
It's really becoming an incredible investment strategy.
No wonder TPTB are taking gold and all related down in a preemptive move. Of course they are buying all the idiots are selling with both hands ( along with Euros ). Have doubts? Look at COT reports.
Who would be dumb enough to sell an insurance policy like that?
Hell, the stuff's on sale.
That dollar index isn't gonna stay up forever.
Get with the programme you are way behind!
Greeks been pulling Euros as cash out to stick under beds ever since the first elected and non-elected European politicians started saying last week that terrible things were going to happen to Greece if the pro-bailouters did not get back into power.
Greek government revenues have fallen off a cliff in the past week as everyone is stashing their Euros under their mattress instead of paying government bills, taxes, etc. that were due over the past week. They don't want to be caught with their pants down when the 'bank holiday' is called. Those few Euros will be worth lots of Drachmas after the devaluation. There will be a parallel currency in Greece but not because TPTB want there to be (though I imagine they will - Euros to continue paying back debts to core European banks and Drachmas for the local peasantry).
Hey "genius", a lot of Greeks already earn pitiful salaries, 20-30 euros PER DAY and having two shitty jobs. Going back to garbage Drachma and devaluation will only collapse the domestic market ever harder. 78 percent of Greeks WANT to stay in Euro, they do not want that garbage money back.
Hey "dickhead", all I'm saying is that people are taking money out of their bank accounts and stashing those Euros under the bed and not paying their government bills/taxes. WTF has what someone in Greece is earning got to do with it?
now children; behave yourselves. This wave is headed across the pond as sure as you're both calling names at each other. Bank run, USA style, anyone? Won't matter...
I'm already stashin' cash then we go to silver fizz, then we go to 55grain FMJ.
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?
The post includes text for those who do not rely exclusively on pictures for their information needs.
I can easily empty my account from an ATM. You just have to have less in the account than the withdrawal limit. Try living as one of the 95%'ers.
Yea, probably so. It's also the reason the FED is clearly in the markets today continuing to shove them back up over and over.
Is it just me, or can you literally see the intervention with the break-neck reversals and slams higher?
OT - Post-Europe close ramp up in progress.
Big time. Why? Is it because Dimon kept his pay package?
Nothing that a daily cap on withdrawals couldn't fix...
the "run" is occuring globally as the Brazilian real, the aussie dollar, the rupee to name a few have sold off in earnest-destination US dollar. The dollar may soon be above it's January high as the sell-off in the euro and renmimbi begin to pick up steam. gold has been amongst the commodity casualties. but sentiment on gold is becoming too bearish so a bounce may come soon, and it could be tradeable. i was hit with beacoup down arrows for suggesting such herasy as a strong dollar and weak gold some weeks ago. Guys like Jim Rogers didn't make money by being one trick ponies and getting married to anything. he may "hate dollars" which is a pretty dumb thing to say, but he owns some just in case they become more valuable. that's smart.
Dollar might rise somewhat still but the economic fundamentals in the US are in much worse shape than in most of the Eurozone countries. US can only continue printing money until even that won't work anymore.
Doesn't matter; we got the biggest guns.
Those "biggest guns" are bankrupting your country.
"Those "biggest guns" are bankrupting your country"
True, but at the end of the day, those big guns have done more for us than any european social program has done for them...
Hey - that sounds like a good plan:
1) FED & Co stops meddling with markets - except Gold of course
2) Unleash Serious Shitstorm
3) Everybody and his pre-programmed mother runs to the dollar and dollar denominated assets for "safehaven" comfort
4) Once everybody is nice and comfy, a surprise announcement to devalue the dollar or issue those nice new ones with the golden liberty bell, that had trouble getting out of the printer some time ago.
All in a days work!
Come on, show me some images like this. Not that I don't believe it!
http://t1.gstatic.com/images?q=tbn:ANd9GcROmJplAnn0Ere_IQBkCzd_0NDaxl81E...
Some "geniuses" here even suggested Greeks should introduce new Drachma! How fucking stupid one can be...if you really want to see a massive bank run, they should do exactly that!
Euro is backed by the combined industrial base of mostly northern Eurozone countries, not by some bullshit, paper pushing managers, shopping mall "consumer" economy crap like in the US of A.
Argentina 2001 (they had their currency at parity with the dollar)
http://video.google.com/videoplay?docid=4353655982817317115
Maybe these are just pictures of Greek people preparing to go on summer vacation, after all it is mid May. Has anyone heard from Mr. Panos?
A bank run could happen in any country. I guess if you hype a bank run enough and show random pictures of people at ATMs, you could pat yourself on the back for helping to start one.
History shall repeat itself in a far greater scale and therefore the benefit for the leading roles shall be much greater. If ancient Greeks won the battle against the barbarity of the East in favour of Europe, then modern Greeks are those who are meant to win the battle against the barbarity of both Eastern and Western world in favour of the human kind.
http://eamb-ydrohoos.blogspot.com/search/label/ENGLISH
.
pictures look like a bank crawl
Where was that picture of the people in line at Indy-Mac? OMG, there are so many of them.
google images "indymac bank run line"
I pity the folks who are just now trying to withdraw their cash. They will be the same ones with only three day's worth of food in their house as well.
Be sure to bring a crowbar to our atm bankruns.
I was told to never bring a crowbar to a gun fight?
Mebbe', just mebbe', consider that you are a greek citizen today. Would you need a photo of a bank run to spur you on to get your money out of the bank?
Greek bank run releasing a test fart
http://www.youtube.com/watch?v=RMX8L7Yxyfk
Angela Merkel arrives at the Greek border. "Name?" asks border guard. "Merkel," she says. "Occupation?", he asks. "Not yet."
Mama said receivership was like a box of chocolates. you never know how yer gonna get screwed.
Biggest laugh I have had all week. Thanks!
Animal House Flounder
http://www.youtube.com/watch?v=arZdeg_fL-I
Uhhhhh, anyone looked at EURUSD last few hours?
Bash Tyler all you want, but something bad is happening in the EU as we speak.
Eur, GBP, NZD, all down about .5% against USD. You don't see that everyday.
Do you Americans have a memory span of a fruit fly or something. It was at the same level at the beginning of this year and 1.20 during summer 2010.
Same level relative to..........the dollar? A see-saw corkscrew doesn't get you anywhere but screwed.
This is for fun. Next time make a colage from more pictures to make bigger impression of bank run. Zero hedge is a serious financial site please don't republish any bullshit from internet.
Fuck you, Benazolos Bernakizakous!
u forgot Timinikos Geithneropolos!
Good thing this will never happen here!
</sarc>
To the Greeks who can read this:
GET YOUR MONEY OUT OF BANKS ASAP. GTFO.
Some people's money has fled out of greek banks, and into matresses and Norway/Switzerland/Sweden banks many months ago. But those people, who were trying to insure themselves from a Greek default, are now worried reading in Zerohedge about the risks of a complete collapse of the world banking system. We had not planned for this, we were only trying to avoid the iceberg lying immediately ahead.
More like a bank WAIT amirite?
edit - wong post
Judging by the way those people are dressed, particularly the women, it is hard to believe there is anything amiss in Greece. Carrying a designer leather handbag in broad daylight in a country with 50% youth unemployment?
Also, $10 says the photographers proceeded to steal these poor saps' PIN numbers.
Are you some kind of handbag expert?
Looks like nine people to me. Call me when the lines are 20+ at every machine and the fist fights start breaking out.
""Anxious Greeks have withdrawn as much as 700 million euros ($893 million) from the nation’s banks"
To buy bonds? Since the payment was made, it is now RISK ON time again.
i love the look of frustrated greek women at the ATM.
Someone didnt do the math...
€700mm/10 days = €70mm a day. Jan 2011 - Jan 2012 = €40 bbn = €100mm a day.
The fantastic irony here, IMO, is that the ONE thing that keeps this from happening in the U.S. is the SAME thing that has been taken from the Greek people: the ability to print money. Not that I am advocating it, just that printing is all that stands between the U.S. and the current Greek situation. The USD is backstopped by the printing press.
Now imagine what things will look like when people are going to the ATM's to withdraw money so they can SPEND it before the purchasing power of their money plummets further. Then these types of runs post the risk of kickstarting hyperinflation. Of course, that would would require the printing presses to be running hot.
I feel bad for the people of Greece, but I found a bed that may help them out.
New Banking System
Greek bank stroll, genius,? genius, genius!
" The multinational corporations now developing budgets often bigger than medium-sized countries — these live in a global space which is largely unregulated, not subject to the rule of law, and in which people may act free of constraint.” (Paddy Ashdown)
"Has the Greek bank run started?"
I was expecting more from this site. The bank run started years ago in Greece. What do you think?
On the other hand, the run on the gold market is getting faster and yet still nothing here except for China is buying or whatever ....
Hey! Wait just a damn minute.
That's our money.
XXXOOO,
Troika
ECB-Eurogroup-EFSF-NBGR-GRPM decided to approve the 18b€ recap of the Greek Banks in the following 4 days.
(/in order to continue the backing of GRBanks with regards to capital requirements and liquidity needs during the pre-election period, especially under the uncertainty of/)
Greece GDP drops 6.2% in Q1
http://goldandsilverlinings.com/?p=1989
Germany tonight telling Greece to make sure they vote 'the right way' and Greek president confirms run on banks and possibility of collapse of banking system
We will see the same thing in Italy next month, right after Greece fails to pay and elections put more socialists back in power. Its going to be UGLY once the Italian bank run starts, the contagion will spread like wildfire and the Troika will be done, there is no backstopping the avalanche that is coming.
Where you do you go to find out which soverigns/institutions are selling gold?
gata.org ? kingworldnews.com ? Dunno, some won't report anything, some misreport. Russia's famous for announcing a gold sale before actuallying buying.
How much do you want to with draw today sir
- How much can I take out, can I withdraw on the credit card also ?
Are you attempting to transfer cross border - that is not permitted..
- No just a special holiday
Oh yes ? Any where nice
- Switzerland, Luxembourg, Cayman..
All of them ?
- Haven't decided witch one - need to decide which is the cheapest jouney including a full suitcase..
So who's got their numbers straight ? WSJ saying $890M+ withdrawn on Monday alone, not since the election as reported by Bloomberg. Perhaps someone's confused, or being misled ?
I think we have hit spastic pants-shitting retard mode!
Here is some useful guidance when using this site (which has been openly established by gamblers who disclose in advance that any given article supports their daily roll of the dice. They literally tell you they are trying to affect the tumbling dice:
False Flag - when an opponent adopts the mantle of a perceived friend. For example, the establishment might pose as a counter-cultural hero, and use the cultural perception to twist current perceptions.
Up and Down Arrows: the down arrows are from individual's who's well-being, or bets on increasing individual well-being, is hurt by the content of the speech being evaluated. By "down-arrowing," stakeholders hope to deter speech that is contrary to their interests. The same can work for up-arrows - when there are many of either against a few, it is important to carefully assess the speech of the few. Tyranny, all tyranny, relies upon consensus.
Bullshit: bullshit is what it is, like a picture of a few people at an ATM supporting a story about an alleged bank run - Google Image search "Great Depression and Bank Run" - the people in this vitally speculative story are getting money for gyros.
:D
for being so chipper I gave you a vote
dude saw this on yahoo news at work (zerohedge is banned so I dabble in MSM) kinda trippy but it's neat to get the good name of Tyler Durden out there
zerohedge is banned?? wtf?? who?? under whatext?? holy crap!s