Top of Drudge: Bank Runs Hit Greece

[speciallyblend]

duck frudge

 

[Zippyjuan]

If Greece decides to leave the Euro there will certainly be a run on the banks (which will probably be shut before the news is announced). Withdrawls are up but not yet at the "run" level.
http://www.washingtonpost.com/world...anking-fears/2012/05/16/gIQAUdacTU_story.html

ATHENS — With Greece’s future in the euro increasingly in doubt, this troubled nation cobbled together an emergency government Wednesday and set a date for new elections amid fears that accelerated withdrawals by spooked depositors could escalate into a run on the banks.

Greek banking officials said the pace of withdrawals slowed Wednesday, a day after President Karolos Papoulias — the ceremonial head of state — conceded that almost $1 billion worth of deposits had been withdrawn or converted into safe-haven German bonds in recent days.

Merkel spoke as fresh fears were brewing over Greece’s banking system, where deposits have now fallen to $214 billion, down from $236 billion as recently as December.

The European Central Bank has cut off some Greek banks from its main lending programs because they are so weak, forcing them to rely on other forms of emergency help. A recapitalization of Greece’s banking system is part of the international bailout program, but officials have been slow to agree to the details.

 

[jim49er]

If Greece decides to leave the Euro there will certainly be a run on the banks (which will probably be shut before the news is announced). Withdrawls are up but not yet at the "run" level.
http://www.washingtonpost.com/world...anking-fears/2012/05/16/gIQAUdacTU_story.html

Do you think a bank holiday is coming soon or more kicking of the can for more time in this failed system?

 

[Zippyjuan]

It could very well happen there. When- nobody can say yet. I look for lots of more can kicking for now. Would that lead to a simliar situation here? No. We are not in a similar situation to Greece. Another question is if Greece leaves the Euro will others try to follow? (might depend on how things turn out for the Greeks). We saw in the Great Depression that cutting money made things worse and caused it to run longer. Slashing spending in Greece too will only continue to make things worse.

I think that if Greece had not been allowed to join the Euro when the did, they would be in better shape now than they are (not saying great- only better which from terrible to merely bad perhaps). Greece was considered by some to be too far in debt to qualify as a Euro country back in 2001 but that was ignored (and the true situation was even far worse than those people imagined). They would still be in debt but would have the flexibilty to try other things besides what Germany wants to get their economy back on footing.

 

[Seraphim]

SPAIN:


http://www.zerohedge.com/news/nationalized-spanish-bank-plummets-news-bank-run

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.

 

[wgadget]

USDEURO IS STILL FALLING AND AT $1.2671

 

[Seraphim]

The Bernankcopter will be dispatched.

USDEURO IS STILL FALLING AND AT $1.2671

 

[Zippyjuan]

Compared to one year ago, the Euro is down about ten percent vs the US dollar.
http://www.google.com/finance?q=USDEUR#

Since the start of the year it is only down 1.75%.

 

[DEGuy]

The Bernankcopter will be dispatched.

 

[Acala]

It could very well happen there. When- nobody can say yet. I look for lots of more can kicking for now. Would that lead to a simliar situation here? No. We are not in a similar situation to Greece. Another question is if Greece leaves the Euro will others try to follow? (might depend on how things turn out for the Greeks). We saw in the Great Depression that cutting money made things worse and caused it to run longer. Slashing spending in Greece too will only continue to make things worse.

I think that if Greece had not been allowed to join the Euro when the did, they would be in better shape now than they are (not saying great- only better which from terrible to merely bad perhaps). Greece was considered by some to be too far in debt to qualify as a Euro country back in 2001 but that was ignored (and the true situation was even far worse than those people imagined). They would still be in debt but would have the flexibilty to try other things besides what Germany wants to get their economy back on footing.

Actually, we ARE in the same situation as Greece in the sense that we have debts and other obligations that we simply cannot, and never will be able to, pay. Ever. No scheme of taxation will cover our obligations and the political will to renege on the obligations is no there. That's Greece. The only difference, other than scale, is that we have a Central Bank that can create currency to pay the obligations. So our default will come in the form of currency destruction. Just a matter of time.

 

[wgadget]

Actually, we ARE in the same situation as Greece in the sense that we have debts and other obligations that we simply cannot, and never will be able to, pay. Ever. No scheme of taxation will cover our obligations and the political will to renege on the obligations is no there. That's Greece. The only difference, other than scale, is that we have a Central Bank that can create currency to pay the obligations. So our default will come in the form of currency destruction. Just a matter of time.

And SO...In regards to to the inevitable currency destruction---One should be purchasing land, provisions, gold/silver and other commodities before their price skyrockets. Correct?

I love saying it: RON PAUL WAS/IS RIGHT. He does not lie to us.

I ♥ Ron Paul.

 

[Acala]

And SO...In regards to to the inevitable currency destruction---One should be purchasing land, provisions, gold/silver and other commodities before their price skyrockets. Correct?

Yup. And tools, materials, and skills for making a living in a localized economy.

 

[Seraphim]

You may be right :


http://www.zerohedge.com/news/ireland-and-portugal-resume-their-places-among-europes-dominos

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.

 

[Acala]

Instead of a bank run, we can call it a swift and sustained bank walk.

 

[legion]

Top of Drudge, now:

Bank Runs hits Facebook IPO

Of course, everyone knew this was going to happen 5 years ago.

 

[jim49er]

Instead of a bank run, we can call it a swift and sustained bank walk.

lol

 

[Liberty74]

The stock market is still slowly tanking...DOW down almost 1000 points the last 10 days.

Hey, at least oil is going down.