The market value of European banks has shrunk by more than €50 billion after Greece shut down its banks until July, 6, the day after the referendum on the bailout deal is held.
Without a complete capitulation from the troika, Greece will default on the IMF tomorrow and emergency liquidity assistance should be withdrawn on Wednesday.
*Update: Greece officially passes Capital Controls Act – Banks to Remain closed until July 6th, ATM Withdrawals Limited to €60/day
“He who panics first panics best.“
It appears the phrase might not have been translated into Greek, as now that the Greek banks and market officially will remain closed Monday, Greeks have suddenly found religion, and are storming ATMs, stores, and gas stations tonight…
I am of the opinion that some of the Greek banks will not open Monday and those that remain open will shut down with a day of opening or at least by June 30. The ECB and IMF are looking at June 30 as the absolutely deadline for full on default, no concealing it any more.
The ELA must protect its position and will likely order a bank holiday and full on capital controls because the bank deposits are now less than what is owned. Collateral is going to be worth ZERO in short order as a Greek default shoots rates to 50-90% on 2 year bonds, just like the last time Greece took the haircut that avoided a full default 2 years ago.
This will precipitate a bail-in as the ELA, along with the troika, will demand full deposit theft to protect this 100 billion euro assets still within reach. Bank holiday will give the troika and ELA provisions time to extract everything they can reach in these accounts. If the Greek central bank does not nationalize the banks sometime between Sunday and Wednesday, the banks will fail and crash, throwing the entire system into chaos.
When the Governor of Texas decides to put a gold depository in the state and reclaim Texas gold from the Federal Reserve, this could be one of the first steps toward a bank run.
The co-CEOs of Deutsche Bank have unexpectedly stepped down. Recall that Deutsche Bank is now the largest holder of derivatives in the world.
“The ONLY reason these resignations would have been unexpectedly coerced like this is if Deutsche Bank was having a potentially uncontrollable problem in its OTC derivatives holdings.“
A cashless society is right around the corner and the financial and economic nightmare that is unfolding right in front of us will be ramped up to warp-drive.
So good luck with the coming bail-in from your account. The ability to remove your funds from your 401k and IRA is in the process of being taken away from you, it is called a Gate Mechanism. You will no longer be able to actually remove the funds in your account, merely move from one fund to another. When the banking cabal stops the flow of hard currency and force you to use their criminal online, fully digital “currency” you will have no choice as to how your funds are used or who uses them for what purpose.
Step out of line–deleted from the financial world.
Welcome to a brave new hunger matrix world.
While shocking to some, the bail-in strategy is completely legal.
Client account holders can only profess ignorance which – when it comes down to it – will not be enough to protect them. Knowingly, or unknowingly, account holders are investors and not savers.
The event in Cyprus is and will not be an isolated event.
Quite a day today. First off the ECB has decided that it will not fund Greece anymore and that should kick off a huge bank run tomorrow.
Let’s head immediately to see the major data points for today:
In the wake of the Swiss National Bank shocking the market this week de-pegging the CHF from the Euro, the Golden Jackass Jim Willie joined us over the weekend for an Exclusive Interview discussing:
- Willie explains why the Swiss are dumping the Euro in favor of GOLD, and that multi-hundred billion trading losses will result in MASSIVE DERIVATIVE LOSSES & CONTAGION!
- Swiss actions have brought a HUGE ACCELERATION of end game events–We’re looking at the potential END of the EURO!
- Swiss have front run the Global Currency Reset & GOLD REVALUATION!
- $2 TRILLION IN SUB-PRIME OIL BONDS ARE ABOUT TO EXPLODE! Contagion will be bigger than sub-prime housing crash!
- Dollar Death-Spike: Fed has LOST CONTROL of the dollar!
- Coming European bank failures will result in a STAMPEDE INTO GOLD!
- 2015 Will be a repeat of Lehman- Several Western banks will go down, This is GAME OVER!
- When Putin flips his switch, the DOLLAR IS DEAD, and Gold Will DOUBLE!
- GREXIT will blow up the EU!
One of Jim Willie’s Most Dynamic & STUNNING Interviews EVER is below:
Roughly a month ago IMF bureaucrats released an official report which stated, among other things, that Bulgarian banks are “stable and liquid.”
Talk about epic timing. Because less than two weeks later, Bulgaria’s banking system was in the throes of a full-blown crisis.
There was a run on two of the nation’s largest banks—several hundred million dollars had been withdrawn in a matter of hours.
And the Bulgarian central bank had to step in and take over both of them or risk a collapse in the entire system.
This is the modern miracle of fractional reserve banking.
The lesson here is clear: The people in charge of regulating the system and making these proclamations about bank safety are totally clueless.
Clearly, Bulgaria (and Portugal) shows that the entire system can really be a bunch of smoke and mirrors.
As the US & EU prepare to level economic sanctions on Russia over the Ukrainian crisis (& Russia threatens to retaliate with economic sanctions of its own against the dollar and freezing all US assets) a bank run appears to have begun in Crimea as citizens lined up Thursday to withdraw funds from Ukraine’s largest bank, Oshad.
In the excellent interview below, Gerald Celente addresses concerns about terrorism, a World War, financial meltdown, & the risks of bank runs and bail-ins in Europe and the U.S. in the coming months.
He pointed out how Cypriot depositors lost savings in bail-ins and that in the Ukraine today “massive bank withdrawals are going on.”
Celente said that the 9/11 attack and subsequent restrictions on access to bank deposits in New York , when Wall Street was closed down for a few days, may be seen again. He warned of the risk that “ATM machines are not working anymore” and the authorities are “putting restrictions on what you can draw out.”
He advised owning physical gold and silver in your possession and said that the precious metals are like a “cash cow when you have the real deal”.
“If you have gold or silver, you are in a golden position,”
Financial crisis fears are spiking this afternoon as one of Russia’s largest 200 banks by assets, ‘My Bank’ has reportedly halted all cash withdrawals for one week.
Officials of My Bank have refused to comment after news of the bank halting all withdrawals was leaked early Monday by a call center employee.
The US Federal Reserve is reporting a major deposit withdrawal from the nation’s bank accounts. The financial system has not seen such a massive fund outflow since 9/11 attacks.
The first week of January 2013 has seen $114 billion withdrawn from 25 of the US’ biggest banks, pushing deposits down to $5.37 trillion, according to the US Fed.
BOE Says U.S. “Could Do Today” And U.S Authorities Doing Simulation Exercises.
The U.S. already has in place plans for bail-ins in the event of banks failing. Indeed, the U.S. has conducted simulation exercises with the U.K. in recent weeks and will do so again in 2014.
On October 12, Art Murton, the FDIC official in charge of planning for resolutions, and the Bank of England’s Deputy Governor Paul Tucker, both confirmed that the U.S. system is ready to handle a big-bank collapse.
The Bank of England’s Tucker, who has worked with U.S. regulators on the cross-border hurdles to taking down an international firm said that “U.S. authorities could do it today — and I mean today.”
David Morgan joins Ellis Martin to discuss JP Morgan Chase’s upcoming dictate to limit out of country wire transfers as of November 17, 2013.
Will there be a bank run and an economic collapse caused by a banking system failure? What do the banks know that the country doesn’t?
Morgan also discusses the historical perspective for returning to a gold standard, and his current outlook on the metals.