Link: World News - Greeks withdraw $894 million in a day: Is this beginning of a run on banks?
Author: Alastair Jamieson, msnbc.com and NBC News
The minutes also reveal Papoulias was warned by George Provopoulos, head of the country’s central bank, that savers withdrew at least 700 million euros ($894 million) on Monday, Reuters said.
"Withdrawals and outflows by 4:00 p.m. when I called him exceeded 600 million euros and reached 700 million euros," the president said according to the minutes of the meeting. "He expects total outflows of about 800 million euros."
Several banking sources told Reuters similar amounts had also been withdrawn on Tuesday. Nevertheless, there was no sign of panic or queues at bank branches in Athens on Wednesday. Bankers dismissed suggestions that a bank run was looming. A senior executive at a large Greek bank told Reuters: "There is no bank run, no queues or panic. The situation is better than I expected. The amount of deposit withdrawals the president mentioned referred to three days, not one."
A senior bank executive said there had been withdrawals in recent days but there was no sign yet of a panic, as had happened in April 2010 when eight billion euros were withdrawn just before Greece obtained its first foreign bailout.
I wanted to post and comment so as to head this one off at the pass so to speak. While it makes no direct link, the title that MSNBC uses makes it appear as though this happened in a few hours and that there is more to come on the horizon. Of course the linkage to other 'poorer' EU countries is also made and whether or not the EU will allow them to fail as well should Greece exit the Eurozone. The 800lb 'thing' in the room is whether or not this 'run on banks' will eventually gobble up the U.S. should Greece, Portugal, Spain and others go down in flames.
First off, this type of journalism is completely irresponsible, but not unexpected these days. In typical fashion, the title makes it appear as though a 'general' run on banks is beginning or could begin which = global run on banks. Casual readers are not discerning nor do they pay attention to detail.
Secondly, while it is in the future for a day's wages to pay for a handful of food, this is not it. What this is, is the consequences of greed; corruption; self-absorption and the rest coming to bear fruit.
Third, comments like the following make me
Roger White, an American private tutor who moved back to the United States from Greece three weeks ago to escape the economic crisis, told msnbc.com: "I see violence on the Greek horizon. Will the Greeks continue to withdraw their savings? Yes, for as long as they can. Then, the government will intervene with limits on withdrawals and other controls. Then, Greeks will protest in the streets, light banks afire, smash bank windows and rip out ATMs.
"Oddly, I can say that in many ways my Greek experience gave me wonderful opportunities. Nonetheless, my epiphany came when Greece's economic collapse and the government's implosion revealed just how reliant on the government we are, and just how vulnerable to government mismanagement we are."
Mr. White...you are as reliant on the government insofar as you make yourself reliant on the government.