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Bloomberg: "Anxious Greeks have withdrawn as much as 700 million euros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:
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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