Greek
Bank Run Update: €100-€500 Million Per Day
The
Greek banking system has continued to hemorrhage deposits this month,
amid uncertainty over the outcome of elections
12
June, 2012
Five
days ahead of the Greek parliamentary re-vote, the media propaganda
machine has gone mute due to the moratorium on the RAND() known as
popular polling: forgotten are the days when Syriza' popularity
rating would swing from -100 to +100 in the span of hours, Diebold
notwithstanding. Which leaves the media machine just one tactic:
updates on the economic collapse as a tacit suggestion of what may
happen if situation is not fixed.
And
while at this point it is nearly impossible to distinguish propaganda
from fact, the latest numbers out of Kathimerini are just stunning.
As
Bloomberg's Marcus Bensasson reports, citing Kathimerini, the Greek
banking system has continued to hemorrhage deposits this month, amid
uncertainty over the outcome of elections on June 17.
"Many
people are putting money in shares of mutual funds denominated in
dollars because of the bureaucratic difficulty of taking money out of
Greece, or are keeping cash at home, the newspaper said."
How
much?
"Deposits
are leaving the banking system at a rate of 100 million to 500
million euros ($125 million to $625 million) a day, Kathimerini said,
without specifying over how long a period that rate of outflow has
continued."
Considering
that the Greece banking system has about €170 billion in total
deposits, this is roughly 0.3% of the entire deposit base fleeing
each day - those who understand the nuances of fractional reserve
banking get why this could be an issue.
Putting
this in the US context, which has over
$8 trillion in
various forms of deposits, this would be equivalents to about $25
billion getting withdrawn. Every
day.
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