Subvarient from XKCD...
Posted on 05/15/2012 1:26:23 PM PDT by tcrlaf
ATHENS—Greek depositors withdrew €700 million ($898 million) from local banks Monday, the country's president said, as he warned that the situation facing Greece's lenders was very difficult.
(Excerpt) Read more at online.wsj.com ...
I would have pulled cash out of a Greek bank long ago...
When the crap-hits-the-rotating-device, bank accounts will be frozen overnight with no accessability until the "new" currency is established.
Then it is too late, you are stuck with a huge loss in assets. Not to mention you'll be able to buy things in a currency that is actually worth something.
Full story here:
http://online.wsj.com/article/SB10001424052702303505504577406310678151998.html?mod=googlenews_wsj
The thing about bank runs is that they tend to be contagious...
This probably has depositors in Spain going “Hmmmmm - we’re the next-weakest, so it must be time to get out”
Which could cause depositors in the next-weakest (Portugal?? Italy?? Ireland??) saying “Hmmmm.... “
Lather, rinse, repeat, until there’s not a functioning bank in the Eurozone... (Or, to mix a metaphor - the dominos may continue to topple around the world...)
Quick, send Jimmy Stewart over there.
Wouldn't that have been about $1.4 billion, just a few years ago? They're beating us in the race to the bottom, it seems.
We saw it with the investment banks in 2008. Bear, then Lehman, then MS, then ML. The traders turned their sights on the weak one and went after them. They will do the same with the sovereigns.
and so it begins...
last chance to get ready folks.
***
Unfortunately, all of the Greek banks are staffed by an army of Uncle Billys.
Finally an "and so it begins..." placed at exactly the right time, I think. You deserve a prize. Like one billion zimbabwe dollars or something.
When it hits the fan, folks can stop buying gold jewelry, but they can't stop eating. At least not for long.
” They will do the same with the sovereigns. “
Not quite the same - when the sovereigns fall, there will be nobody to bail them out...
Much of that capital will be transferred into dollar denominated investments. That will boost the dollar, US stock market and the American economy. Ironically the European debt crisis which is the result of the same deficit spending and borrowing that Obama is doing here, will improve Obama’s reelection prospects as the US benfits from these capital transfers.
BANK RUUUUUNNNNN!!!!!!!!
A Greek who leaves money on deposit in a Euro account in a Greek bank past COB today is crazy. The run will turn into a rout tomorrow. I wouldn't be surprised to see the banks closed tomorrow.
No, it doesn't.
All WSJ articles are available in full if you copy the title into the Google search bar. Result will give you a pass to read the whole thing. It's a deal they cut several years back.
Subvarient from XKCD...
I’ve been going into bond funds for quite a few days now - maybe the primer has been lit ...
“When the crap-hits-the-rotating-device, bank accounts will be frozen overnight with no accessability until the “new” currency is established.”
When Argentina did this some enterprising folks realized they could access their accounts from casinos...in Uruguay.
I should have moved into Bonds on May 1st.
but im safe now /s
go to YouTube and you can see video of mobs in Argentina destroying ATM machines when this happened in 2002.
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