Tuesday, May 15, 2012

Hints of a Greek Run on Banks

Greek depositors withdrew EUR700 million from local banks on Monday, the country's president said, and warned that the situation facing Greece's lenders was very difficult, reports WSJ.

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

4 comments:

  1. The question is whether these Greek People will be smart enough to turn in their paper notes they get from the ATM for cold hard cash AKA gold and silver coin.

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  2. "It is true that the investment of its assets in short-term loans does make it possible for a bank to satisfy its creditors within a certain comparatively short period. But this would prove adequate in the face of a loss of confidence only if the holders of notes and deposits did not apply simultaneously to the bank for immediate payment of the sums of money owing to them. Such a supposition is not very probable. Either there is no lack of confidence at all or it is general." - Ludwig von Mises

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  3. Ron Paul has stated that a major economic event would be grounds for his running third-party. Perhaps this is the beginning of that event.

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  4. I'm sure the old timers have buried some gold or silver just in case. The young are too busy .......

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