Quiet Greek Bank Run Quickens With Euro Debt Crisis

Investor's Business Daily ^ | 11/21/2011 | Jed Graham

[Slyscribe]

As fears that Greece will leave the euro have grown, a quiet bank run has proceeded. Deposits held by corporations and households fell 22% from the start of 2010 through September.

Deposit outflow from Greek banks reportedly accelerated in recent weeks, spurred by a threat that Europe would rescind its bailout package if Athens failed to meet austerity demands.

[STD]

Coming to the USA soon.

[cuban leaf]

The one time money really does leave the whole system, besides that removed via the debt collapse, is when people like me buy lot’s of PM and do nothing with it. It is like money frozen in time, until it is used to buy something. At least savings is theoretically used to be loaned back into the economy.

That is one of the problems with money in mattresses. It’s not doing anything. It is deflationary. As is buying PM’s. And when inflation hits hard, and people start using their PMs to buy thins, It amplifies the inflation.

I’m rambling. Never mind...

[JakeS]

Coming to the USA soon.

Coming soon? It is here my friend. Deposits are down, withdrawals are up, silver is getting hard to find.

[The Working Man]

You are correct as usual. I a person was to envision the banking aka Financial community as a giant and sturdy Oak tree it has as it’s very roots the absolute need of confidence in what it does. Once they lose that confidence the roots of their business will rot.

So using the same analogy once the roots are rotten the base of the trunk goes and then when the first bad wind comes it will cause it to topple over. So where will the tree fall? Whose house or property will be demolished?

[KarlInOhio]

If Greece reverts to the drachma, will the EU forcibly repatriate Greek citizens' deposits in non-Greek banks and convert those to drachma too? The EU is already leaning on Switzerland to limit Greek citizens' deposits. It looks like a stack of 500 euro bills might be the only safe place for a Greek citizen to hold his life savings until the problem is solved or Greece collapses and it is time to pick up the rubble.