Greece’s Bank Jog Turns Into A Run: Is Viral Panic Next?
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  • Mogden

    I agree with your comment. It is insane that this didn’t happen long ago.

  • EvilBuzzard

    And welcome to the Tragedy of The Commons. Garret Hardin could have seen this one coming a mile away.

  • Sundog

    “When there’s a fire in a crowded theater, you want to be among the first at the door.”

    Unless it’s locked. Then you get trampled or crushed to death.

  • t0r67foulvjjcfxte

    “Of course a bank run will hasten the insolvency of the banks and force an earlier Greek exit from the euro: that is all the more reason to panic fast. When there’s a fire in a crowded theater, you want to be among the first at the door.”

    “Bank panics are slow to start but they can build with unbelievable speed if the panic goes viral.”

    You might be able to get a better quality of intern if you paid them something.

  • TravisMcGee

    This could have been managed, a year ago. But the governing and banking class of the EU was having none of it.

  • MST

    Tipping point one is when the ATMs start consistently running out of Euros.

    Tipping point two is when they stop getting refilled.

    Watch for “Closed for maintenance” signs proliferating on the Diebolds.

  • rix

    Never underestimate the determination of governments to raise revenue. At some point, the door will be locked as the entire populace rushes to the door. The smart and the prepared will be ahead of this with banks far outside the Euro-zone.

  • Jerry

    ““When there’s a fire in a crowded theater, you want to be among the first at the door.”

    Unless it’s locked. Then you get trampled or crushed to death.”

    And having averted the trampling you burn to death.

  • Mike

    And yet the infantile Greeks demand they continue to live beyond their means, and the Germans pay for it. The Germans refusal to pay for it is understandable but selfish as those Germans lived well beyond their own meager means following WW2 on Marshall Plan money, paid by the universally, and unfairly maligned and despised Americans. When Romney opens the Green River Formation to drilling, gasoline will fall to about $1.69/gallon and America will lead the world out of a catastrophe yet again.

  • Captain Dg

    “The amazing thing is that there are any deposits left in Greek banks[.]”

    This is exactly right. But it begs for an explanation. Can it be largely the money of ordinary Greeks? I just can’t see that.

  • richard40

    If this article is true, the chance of europe not slipping into major recession and currency collapse, and then dragging the US down with it, before the election, is remote. I cant say I like to see a double dip recession, but if it is going to come no matter what, a likely possibility, I would rather have it before the election, than after. That way at least it will kill Obamas chances, and by the time Romney takes office perhaps it will hit bottom.

  • Kris

    “The amazing thing is that there are any deposits left in Greek banks”

    Yet more proof of Greek economic wisdom? 🙂

  • Anthony

    Would the other European governments confiscate the deposits of Greek depositors as part of the bailout of either Greece or the European banks exposed to Greece? If you were a Greek citizen, would you worry about that possibility? If I were Greek, I’d get my non-immediate money outside the EU as a whole, and possibly not trust the U.S. or Canada, either.

  • Rich K

    Im ready to go, I got my camera and my popcorn so bring on the bulls.This is what history is supposed to be like, exciting and extraordinary all at the same time.

  • asdf

    Greece is already, according to media reports, looking at how to track, tax and possibly confiscate holdings by their nationals in foreign banks.

    If I were greek, I’d be packing my bags and leaving. Failing that, gold or hard euro-denominated cash is next.

    If greece leaves, it will have to be sudden and total, lest greek citizens convert all their currency and subvert the whole plan. You can’t debase a currency that’s not in use. If word gets out early (and political leaders will be sure to put their own fortunes out of the government’s reach right before it happens), then chaos will ensue, and greeks and the EU will cooperate to put the greek people back into their box.

    A tax on foreign holdings might work, with some kind of exemption for key backers. Or a tax on euro-denominated holdings at greek banks.

  • Jacksonian Libertarian

    The Euro and the EU are going to fly apart, just like the Soviet Union and Warsaw Pact, and for basically the same reason. It is a union being crammed down the throats of the people by the political elite. When even the French people won’t vote for the elite’s Constitution, you know the elites aren’t even on the same page as the people.

  • teapartydoc

    Just think how cheap European vacations are going to be again!

  • Kris

    [email protected]: “When even the French people won’t vote for the elite’s Constitution, you know the elites aren’t even on the same page as the people.”

    Precisely why the proposed constitution was some 200 pages long, with another 300 pages of appendices!

  • Kevin

    “Just think how cheap European vacations are going to be again!”

    I’m just hoping that before its all over Uncle Sam doesn’t need to provide free European vacations for America’s youth like he did for my grandfather 68 years ago.

  • The Panic of 2012? Maybe not a good time for Americans to be invested in the stock market either maybe?

  • I don’t think the Greek situation will come to a head just yet because it will take more time to admit that the situation is unsustainable. Having experienced the hyper inflation in Zimbabwe, I would consider if I were Greek with money in the bank buying durable goods that will still be marketable after the music stops.

  • The smart and the prepared will be ahead of this with banks far outside the Euro-zone.

    Other sovereigns will not allow their currencies to rise far against the Euro. A diverse array of hard assets is probably the way to go. And both the gold price and the central London property market suggest I’m not the only one to whom this thought has occurred.

  • willis

    “You might be able to get a better quality of intern if you paid them something.”

    In which case you’ll want to hire someone more qualified than an intern.

  • piro

    There is possibility also in Japan.
    The preparation which escapes may be necessity.

  • Kavanna

    The critical moment will come when the Greek government imposes capital controls to keep euros from fleeing the country. With that, Greece’s membership in the EMU ends, because money will no longer be able to move freely across the border with the rest of euro-land.

    It won’t be put off for much longer, as the Greek economy is collapsing. Certain Greek towns are moving toward barter, which is another way, I suppose, of leaving the euro-zone.

    This will be the next of a series of Lehman-like moments for Europe, the first one of which was last fall. Expect some major euro-zone banks to become insolvent and be nationalized.

  • Kavanna

    Also, most of euro-land is in recession already. Germany is flirting with recession, having seen contraction in Q4/2011.

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