Truth Alliance Newsletter Signup
     Follow Us   |   Truth Alliance RSS Link     Truth Alliance Facebook Link     Truth Alliance Channel     Truth Alliance Live Documentaries
  Archive > News

Has The Greek Bank Run Started? | May 15, 2012

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 From Bloomberg: "Anxious Greeks have withdrawn as much as 700 million euros ($893 million) from the nation’s banks since the inconclusive May 6 election, President Karolos Papoulias told party leaders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:


EU talking to IMF, World Bank, others about Ukraine assistance
Abortion may be declared a ‘human right’ in tomorrow’s EU vote
Proposed EU Banking Union to Be Funded on Transaction Tax and Carbon Credits
E.U. Official Pushes U.S. to Explain Its Surveillance
Thanks To QE Bernanke Has Injected Foreign Banks With Over $1 Trillion In Cash For First Time Ever
Nigel Farage flees barrage of abuse from Edinburgh protesters
EU to ban pesticides linked to bee deaths
CEO of Italy’s Largest Bank Calls for Deposit Confiscation
EU Study recommends allowing users to flag and ban websites for subversive material
By The Numbers: 20 Facts About The Collapse Of Europe That Everyone Should Know


EU, Euro, Greek, Bank Run

Economics :: 1186 Views :: 0 Comments
Only registered users may post comments.
© Copyright 2007-2013 Truth Alliance inc. All Rights Reserved