Flash off the rumor mill, unconfirmed -- it appears the Greek banks were just cut off by the ECB.
If this is true then this is the latest "Gun up the nose" game by the Germans and ECB, and is almost-certain, in this political climate, to blow up their face (and quite possibly with shooting involved on the part of the Greeks too.)
This instantly hit the Euro and US stock market, which had been having a reasonably decent day.
If true and confirmed then Greece has been effectively orphaned. This appears to be a facial attempt to stick a tourniquet on Greece's neck, as with elections due next month cutting off Greek banks now will basically guarantee they all detonate.
Expect the incipient bank runs to resume en-masse within hours if not minutes.
Time to critical mass is now measured in days if not hours, and if acceleration occurs the weekend is the perfect time for Greek authorities to drop the hammer in the form of a bank holiday and capital controls as they will have no choice irrespective of the critical damage that will result from them doing so.
More as I'm able to learn and/or confirm it.
Update: Just repeated on CNBC - ECB stopping monetary policy operations with "some" Greek banks. Hmmm.... what's "some" gents?
More updates: Flying tweets from all sides on this and on a rumored withdraw limit. Who knows what the truth is -- or if this was a trial balloon. Note that the time to drop a hammer like this that is "least disruptive" is when banks are CLOSED -- like, for example, the weekend.
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"ECB*"  O Page 1/1 BN Ma Euro Erases Gain on Report ECB Halts Actions With Greek Banks
By Dave Liedtka May 16 (Bloomberg) -- The euro erased a gain versus the dollar after Reuters reported that the European Central Bank halted monetary policy actions with some Greek banks.
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Every day I'm more embarrassed and dismayed by my government.
It is impossible to kill the dead with a bullet, but the splatter from the attempt will contaminate the living destining them to a similar fate. ~Dee Junk
There ain't going to be nothing "slow" about this if it turns out to be right.
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I don't care if it makes sense -- only if it makes money. -- Me Bank (n): See scam, fraud and theft.Eat a bankster -- they're low-carb. What part of "shall not be infringed" was unclear?
came across this.. Euro falls as ECB stops monetary operations on Greek banks
As recapitalization not in place, the ECB has stopped monetary operations to some Greek banks according to ECB sources. The EUR/USD has fallen down to test lows at 1.2685. Now the pair is pricing at 1.2720.
EUR/USD spiked lower after another round of risk aversion triggered by latest ECB news, falling to 1.2687, yet bouncing back immediately towards 1.2730. "Investors are extremely sensitive to Greek news, selling the pair strongly on headlines," comments Valeria Bednarik, FXstreet.com analyst. "Currently around 1.2720, the downward pressure increases as stocks lose momentum and approach to opening levels. Below 1.2680 daily low, expect the rally to extend near 1.2625 this year low."
“Cognitive Co-Dependency” is when a normal rational person, internalizes irrational illogical presentations, and somehow reconciles them to fit their scripted indoctrination of logical analysis.
Quote:
Samuel L. Clemens:There is NO Native Criminal Class; EXCEPT for CONgress
Asimov
Posts: 104700
Incept: 2007-08-26
East Tennessee Eastern Time
The ****storm has officially begun.
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It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
Ben
Posts: 6408
Incept: 2009-10-09
The Distant, Glorious, Past
ZH has a back-pedal in that the were using this to force Greece to get with the program and that the ECB had reservations and were thinking of using this as leverage (sic).
Yet another flip-flop machine headline to roil the markets for a minute or two.
Quote:
Earlier today MNI reported that the European Central Bank was growing nervous about delays in the recapitalization program for Greece and was threatening to suspend its lending to Greek banks as a means of expediting the decision.
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"Why are you going to learn French?" "Because I'm going to France," says Joe. "I'm from the future. You should go to China."
Asimov
Posts: 104700
Incept: 2007-08-26
East Tennessee Eastern Time
Please keep in mind that a bank run in greece could initiate bank runs elsewhere too. More important places.
Even here.
Likely? Probably not. Possible? Definitely.
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It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
The collateral damage from Greek detonation...... watch my interview on Capital Account last night. One of those two outcomes is virtually CERTAIN as the capital calls from Greece giving the finger will exceed $500 billion -- and nobody has it.
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I don't care if it makes sense -- only if it makes money. -- Me Bank (n): See scam, fraud and theft.Eat a bankster -- they're low-carb. What part of "shall not be infringed" was unclear?
Asimov
Posts: 104700
Incept: 2007-08-26
East Tennessee Eastern Time
Ben: If that's true, it could still start a ****storm just due to the initial rumor.
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It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
Now that this possibility is out in the open and the general public is aware of it, I would expect that it would be enough to cause a run, just as if the ECB had actually done it.
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". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwell’s imaginings falls into place." - Fred Reed
"...But people better realize that the worst-case scenario could actually happen.9/11 happened. This can happen. An economic 9/11, the likes of which we've never seen." Gerald Celente
Poer
Posts: 1398
Incept: 2008-09-28
'Eppur si muove!'
The 4th Turning has officially begun
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"The degree to which a man substitutes the judgment of others for his own, failing to look at reality directly, is the degree to which his mental processes are alienated from reality." Nathaniel Branden in Ayn Rands 'Capitalism The Unknown Ideal'
Asimov
Posts: 104700
Incept: 2007-08-26
East Tennessee Eastern Time
CNBC with unverified report of 50 euro withdraw limit at greek banks?!?!?!?!
[Edit: I didn't hear that, repeating karl, I'm afraid. It needed to be in this thread though.]
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It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
Twitter guy having a war with me on my tweeting of that -- claims it's not true and "he knows." Rather amusing.
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I don't care if it makes sense -- only if it makes money. -- Me Bank (n): See scam, fraud and theft.Eat a bankster -- they're low-carb. What part of "shall not be infringed" was unclear?
Ben
Posts: 6408
Incept: 2009-10-09
The Distant, Glorious, Past
From Reuters via ZH:
Quote:
The European Central Bank has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalized, euro zone central bank sources said on Wednesday.
The ECB declined to comment.
The ECB only conducts its refinancing operations with solvent banks. With no access to ECB funds, the banks concerned must go to the Bank of Greece for emergency liquidity assistance (ELA).
It was unclear exactly how many banks were affected.
One person familiar with the matter said four Greek banks' capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation.
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"Why are you going to learn French?" "Because I'm going to France," says Joe. "I'm from the future. You should go to China."
So will BOB own a lot of worthless electronic Euro's soon?
Only temporarily.
One way or another, costs of the ownership of worthless assets will be transferred to the taxpayers.
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". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwell’s imaginings falls into place." - Fred Reed
I don't care if it makes sense -- only if it makes money. -- Me Bank (n): See scam, fraud and theft.Eat a bankster -- they're low-carb. What part of "shall not be infringed" was unclear?
