Bank run in Greece? 900 million withdrawn in a day

[Grandluxe]

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.

Greeks Pull Deposits From Banks

In a transcript of remarks by President Karolos Papoulias to Greek political leaders that was released Tuesday, Mr. Papoulias said that withdrawals plus buy orders received by Greek banks for German bunds totalled some 800 million.

Citing a conversation he had with Greek Central Bank Governor George Provopoulos, Mr. Papoulias said "that the strength of banks is very weak right now."

In the past two years, deposit outflows have generally averaged between €2 billion and €3 billion per month

http://online.wsj.com/article/SB10001424052702303505504577406310678151998.html

 

[74Man]

Just shut down all the offices and companies in the world for 15 days. Only internet should be available.

As long as people people go to work and earn some salary every month, they will think there is nothing wrong with the world economy.

People are still paying money to watch movies, sports, entertainment channels, sex, alcohol, cigarattes.

 

[74Man]

 

[xiaodre]

"just shut down all the businesses in the world..."

 

[jem]

The leftists leaders of the U.S. are providing the kind of leadership the world economy needs right now.........


to crater.


How about some a balancing the budget through spending reductions?
These leftists are so extreme in their spending you create Greece.

 

[peilthetraveler]

They have withdrawn 3 billion euros in the last 10 days.

http://www.guardian.co.uk/world/2012/may/16/greeks-withdraw-3bn-10-days

 

[antaram]

you know this type of bank run rumors turn into reality regardless whether they were originally based on facts or not

 

[jem]

It seems rational to me.
I would rather have cash euros... than watch by euros change into drachmas electronically at the whim of the govt.

 

[morganist]

Quote from jem:

It seems rational to me.
I would rather have cash euros... than watch by euros change into drachmas electronically at the whim of the govt.

How do they convert the debt they have in euro's into drachma's? That is the question.

 

[jem]

Quote from morganist:

How do they convert the debt they have in euro's into drachma's? That is the question.

answer... its great to be the sovereign.

They will likely be a drachma crash on the international exchanges unless they declare a mandatory balanced budget until the euro debt is paid off and they float the right amount of drachmas. It might even make sense to start out at 1 to 1 exchange rate... or 2 to 1.

Then declare a period of time where the exchange rate is fixed at the 1 to 1 or 2 to 1 rate.
Set up a system where the govt must have a balanced budget.
Set it up where the amount of drachmas circulated with allow for commerce plus debt.
Then declare as sovereign all greek citizens and govts (maybe corps) can pay all debts denominated in Euros with drachs if contract was executed prior to a certain date.

The smart move now would be to set up Greek Corps... and then pay your Euro debt in drachmas if there is blackmarket during that initial time period.