Top of Drudge: Bank Runs Hit Greece
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thoughtomator
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Drudge is, as usual, misleading. If you read zerohedge.com regularly, you would have known weeks ago that the deposit flight from Greek banks was already under way. Drudge becomes less useful as a source of information every day.
Liberty74
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It's starting people. Just like many of us said it would...the propping up of Greece can't last forever.
I have heard once Greece collapses, we have two weeks until it hits the U.S. I will be getting my money out of the bank ASAP.
Everything is set up by the govt to handle the financial crisis coming...
NDAA
Patriotic Act
FEMA camps
Drones
Internet Kill Switch
450 million rounds of bullets
Military contractors for Marshall Law
Etc.
But hey, it's all about catching the latest Muslim...
I have heard once Greece collapses, we have two weeks until it hits the U.S. I will be getting my money out of the bank ASAP.
Everything is set up by the govt to handle the financial crisis coming...
NDAA
Patriotic Act
FEMA camps
Drones
Internet Kill Switch
450 million rounds of bullets
Military contractors for Marshall Law
Etc.
But hey, it's all about catching the latest Muslim...
Let the GAMES begin! Lol, actually, it's hard to predict exactly how this financial crisis will affect our economy. Ironically enough, it may end up boosting the value of the dollar in the short term if enough banks and investors get spooked and start selling their euros for dollars.
hazek
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It is my opinion that this is crazy speak. Judging by the past these kind of dominos simply do not fall this fast. But yes, we're getting there, slowly but surely.
Greeks have been withdrawing their cash for a few months now, it's just escalating.
When the Spanish start doing this - all hell will break loose within the Eurozone.
Spain/Italy are the real catalyts. Italy has A LOT of gold, therefore I am inclined to think Spain is the one that will turn the snowball into a behemothball.
When the Spanish start doing this - all hell will break loose within the Eurozone.
Spain/Italy are the real catalyts. Italy has A LOT of gold, therefore I am inclined to think Spain is the one that will turn the snowball into a behemothball.
hazek
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I'd say Greece is weeks away from Argentina Nov - Dec 2001 .
And yes I agree. Only after Spain and Italy fold, that's when it will really hit the fan for the EMU.
And yes I agree. Only after Spain and Italy fold, that's when it will really hit the fan for the EMU.
thoughtomator
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IMO Ireland or Portugal will be the catalyst, precisely because they've fallen off the radar and aren't being taken into account by the prognosticators... and their situations are already nearly as dire as Greece's is. When Ireland explodes back into the headlines it's going to come as a huge shock to many and that will set off cascading effects. I don't think this situation gets as far as direct financial attacks on Spain and Italy, the support for the Euro scheme will be pulled before it gets to the larger countries as the core Euro nations see the writing on the wall and move to triage their losses.
It's possible. You make good points.
But the periphery countries such as you mentioned capture a tiny fraction of Euro GDP. TPTB will cut the periphery countries out (or let them walk) if it means the stronger parts of the union can stay together.
If anything... Ireland, Greece, Portugal can struggle and it gives the ECB (political) leverage to print. So long as printing does not create (significant) inflation for Germans, this is what they WANT.
Many European producers **cough, Germany, cough** would love to see a cheaper Euro so they can be more competitive on a global level (no matter how short term and flawed that view is).
It's when MASSIVE capital flight from banks occurs that the Euro experiment collapses. It will take a larger economy, such as Spain, for that to really occur. IMHO.
But the periphery countries such as you mentioned capture a tiny fraction of Euro GDP. TPTB will cut the periphery countries out (or let them walk) if it means the stronger parts of the union can stay together.
If anything... Ireland, Greece, Portugal can struggle and it gives the ECB (political) leverage to print. So long as printing does not create (significant) inflation for Germans, this is what they WANT.
Many European producers **cough, Germany, cough** would love to see a cheaper Euro so they can be more competitive on a global level (no matter how short term and flawed that view is).
It's when MASSIVE capital flight from banks occurs that the Euro experiment collapses. It will take a larger economy, such as Spain, for that to really occur. IMHO.
L
LibForestPaul
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How long did it take Soviet Union to disintegrate? I still remember watching every week and saying, they're just gone?
hazek
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Around three years I believe. You forget that information wasn't as readily available back then as it is today where you know if Greeks protest or say stand in line to withdraw money from ATMs. You might have seen only a snapshot of the Soviet union breaking up but things were playing out over a much longer period with very clear sings of problems..
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Liberty74
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I would agree assuming if Greece was a lone shark. But they are not. Portugal, Spain, U.K., France, Italy are all on the verge of financial collapse too. Greece is kinda like kicking those countries off the cliff as they sit there dangling their feet. The ramifications of Greece going under is big despite the country having a tiny GDP or they would not of had two bailouts.
In regards to getting money out of the bank, I wasn't referring to the banks running out of money per say, but rather the govt installing bank holidays as they will when shit hits the fan. It's best to have some cash on hand to buy whatever just in case.
hazek
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By having made the "either we win or you lose" bets up until now.
Drudge: ECB stops operations with some Greek banks
http://www.reuters.com/article/2012/05/16/us-ecb-greece-banks-idUSBRE84F0SN20120516
"One person familiar with the matter said four Greek banks' capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation."
Negative equity?!? Looks like the euro central bank is starting to cut off Greek banks because they keep borrowing more cash so Greeks can withdraw their money. Eventually we'll see some banks fail because they can't pay their loans back. The market will liquidate the losses and the rest of Europe will end up with bitter with Greece for the perception of being deadbeat borrowers. How's that fractional reserve banking working out for you all?
http://www.reuters.com/article/2012/05/16/us-ecb-greece-banks-idUSBRE84F0SN20120516
"One person familiar with the matter said four Greek banks' capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation."
Negative equity?!? Looks like the euro central bank is starting to cut off Greek banks because they keep borrowing more cash so Greeks can withdraw their money. Eventually we'll see some banks fail because they can't pay their loans back. The market will liquidate the losses and the rest of Europe will end up with bitter with Greece for the perception of being deadbeat borrowers. How's that fractional reserve banking working out for you all?
hazek
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