Why are there no lines outside of Greek and Spanish Banks?

[shfly]

snip..."But one Western elite has spectacularly failed to perform in a First World manner: the Europeans. Though the bankruptcy of Lehman Brothers in 2008 signalled the crisis of an elite ideology in the USA – neoliberalism – the Americans were able to adapt and survive. Even politically, they have so far headed off fragmentation: the Occupy movement will vote for Barack Obama; the Tea Party, which began as a revolt against Wall Street, is now beholden to Wall Street to fund its politicians."


http://www.chathamhouse.org/publications/twt/archive/view/183707

Letting one country after another just die...will only help the radicals.

 

[shfly]

snip...

"Instead, Minton Beddoes says Merkel should be encouraging the euro zone to create a banking union with euro-wide deposit insurance. She also recommends debt mutualization — or limited euro bonds — that would allow lagging countries like Greece and Italy to reduce their debt burdens and allow their economies to grow gradually."


"Merkel's rhetoric may be resolute, but her mixed messages and indecision have allowed the euro zone to fall further into despair."

"She hasn't stepped up to the plate and taken on that position leading Europe forward," Minton Beddoes adds. Germany has "no sense" of a looming catastrophe and "what the costs would be if the euro falls apart."


http://finance.yahoo.com/blogs/dail...-she-got-whole-world-her-hands-134922054.html

 

[Trendytrader]

Invisible bank run in Greece is taking place. Greece will leave Euro.

http://www.bloomberg.com/news/2012-...lows-said-to-have-risen-before-elections.html

Greek Bank Deposit Outflows Said to Have Risen Before Elections
By Elisa Martinuzzi and Christos Ziotis - Jun 12, 2012 6:00 PM ET

Greek deposit outflows have accelerated before this weekend’s elections, two bankers familiar with the situation said, on concern the nation may move closer to abandoning the euro.

Daily withdrawals have increased to the upper end of a 100 million-euro ($125 million) to 500 million-euro range this month, one banker said, asking not to be identified because the figures aren’t public. A second banker said the drawdown may have exceeded 700 million euros yesterday. An official for the Bank of Greece (TELL), the Athens-based central bank, declined to comment.
Enlarge image Greek Bank Deposit Outflows Said to Have Risen Before Elections

At 500 million euros a day, deposit outflows would probably exceed the previous monthly peaks since the outset of the crisis. Photographer: Louisa Gouliamaki/AFP/Getty Images

Greek banks are under strain after individuals and companies withdrew about 72 billion euros since the nation triggered a region-wide sovereign-debt crisis in October 2009. While lenders have access to European Central Bank funding, an exit from the euro would cut them off. Depositors are seeking to preserve their cash on concern Greece may adopt a new currency that would immediately drop in value.

Deposit outflows jumped in the days following the May 6 election after parties opposing the bailout by the European Union and the International Monetary Fund won most of the votes, raising doubts about Greece’s future in the euro. They couldn’t form a government and new elections will be held June 17.

Deposit withdrawals slowed as last month drew to a close, National Bank of Greece SA (ETE) Chief Executive Officer Apostolos Tamvakakis said on May 30.
Unsustainable Pace

At 500 million euros a day, deposit outflows would probably exceed the previous monthly peaks since the outset of the crisis, and wouldn’t be sustainable if they continued over several months, according to one person.

Deposits rose in April, the most recent figures available from the central bank show. Outflows reached as much as 6 billion euros in May, Athens-based Kathimerini reported June 9, without saying where it got the information. Withdrawals in May weren’t on track to surpass previous monthly peaks, people familiar with the matter said on May 23.

Alexis Tsipras, head of Greece’s biggest anti-bailout party Syriza, said yesterday a rapid recapitalization of the country’s banking system, which will give the state voting rights in the banks, will aid in restoring normalcy to the financial system.

He said goals of his government would include getting what Greeks have withdrawn from banks to be returned and asking for a European-wide guarantee on deposits.

 

[Swan Noir]

I must be expressing myself poorly. We all know money is pouring out of both Greece and Spain by wire or other electronic means. As that is happening there must be millions of people with nowhere to wire money to. You would think that, just like at Northern Rock in the UK, they would descend on the branches in some numbers large enough to cause lines.

It is not happening and it seems odd to me. BTW, I do not buy the point of view that says all of the money is already gone or that virtually everyone wires. Neither meet the common sense test.

 

[oldtime]

Quote from Swan Noir:

I must be expressing myself poorly. We all know money is pouring out of both Greece and Spain by wire or other electronic means. As that is happening there must be millions of people with nowhere to wire money to. You would think that, just like at Northern Rock in the UK, they would descend on the branches in some numbers large enough to cause lines.

It is not happening and it seems odd to me. BTW, I do not buy the point of view that says all of the money is already gone or that virtually everyone wires. Neither meet the common sense test.

maybe they are so use to government doing everything for them that they have lost the ability to think for themselves.

They will get in line when someone tells them to.

 

[shfly]

Germany HAS to step up to the plate...if Merkel does, the French, Dutch, Finns etc. will too, and maybe a 1930's outcome can be averted.

If your house is on fire, would you take a time out, or try to get a bucket or two of water? Trying to save a EURO or two when the "EU" house is burning is the wrong medicine...IMHO...


http://www.calculatedriskblog.com/2012/06/european-crisis-commentary.html

 

[Trendytrader]

Bank of Berlin in Greece.

http://www.businessweek.com/articles/2012-05-24/greek-exit-could-trigger-a-run-on-european-banks

 

[achilles28]

Quote from Swan Noir:

I must be expressing myself poorly. We all know money is pouring out of both Greece and Spain by wire or other electronic means. As that is happening there must be millions of people with nowhere to wire money to. You would think that, just like at Northern Rock in the UK, they would descend on the branches in some numbers large enough to cause lines.

It is not happening and it seems odd to me. BTW, I do not buy the point of view that says all of the money is already gone or that virtually everyone wires. Neither meet the common sense test.

Maybe Greeks assume they'll stay in the Euro? Between the deficits they ran and the politicians they back, they seem to be a rather deluded people. The upcoming election (June 17?) features two anti austerity candidates. Both want to roll back austerity measures *and* stay in the EMU?! One guy, the most popular, is campaigning to rehire all the public servants laid off, restore all pensions and salaries for government workers back to pre-08 levels, give them all raises, and roll back all austerity measures. And yes, stay in the Euro. Oh, and don't forget, cut taxes... The ouzo never stops in Greece!

 

[Trendytrader]

Quote from achilles28:

One guy, the most popular, is campaigning to rehire all the public servants laid off, restore all pensions and salaries for government workers back to pre-08 levels, give them all raises, and roll back all austerity measures. And yes, stay in the Euro. Oh, and don't forget, cut taxes......

Is his name Obama???

I hate to say it but this is all going to end rather badly.

 

[achilles28]

His name is Alexis Tsipras, head of the new Syriza party. Greeks regard him as a charismatic dynamo. Just the kinda guy to bust Greece outta it's rut!