Final Curtain

European finance officials have discussed limiting the size of withdrawals from ATM machines, imposing border checks and introducing euro zone capital controls..... Belgium's finance minister, Steve Vanackere, said at the end of May that it was a function of each euro zone state to be prepared for problems. These discussions have been in that vein, with the specific aim of limiting a bank run or capital flight.

Just the latest warning, this time from Reuters.

This is the last post on this blog..... good luck!

Latvian bank run - photos

Latvian bank run

(Translation from Latvian)Across the country to "Latvian Savings Bank" branches on November 23 people gathered to withdraw their money from ATMs. Also at the Savings Bank branch Jekabpils Friendship Alley from 6:00 o'clock on the morning line began to form, and at about 9:30 there's a long line stood more than 100 people who were waiting for money from an ATM costs. neapsīka Row after lunch time, and all day at the cash machine was standing about 100 people. the line was also young people, but the majority, however, was retired. while waiting for their turn, people discussed the latest developments "Latvian Krajbanka "and ruled on the future fate. The media have reported that individuals' Latvian Savings Bank "ATMs from today will be able to withdraw cash 50 lats per day. At first it was intended that the money can be withdrawn from 9:00 in the morning, but for technical reasons, ATMs began work around 9:30. The tomorrow, November 24, people will be able from the "Latvian Savings Bank" ATM to withdraw cash 50 lats ($95). It should be noted that the other bank ATM Savings Bank money can not be removed, it can only be of the "Latvian Savings Bank" ATMs.

"Take some money out"

Greeks’ worst fear is run on banks

In July, Dimitris Kastriotis’ 80-year-old mother received an unusual pitch from her bank manager.He was not asking her to refinance a loan or sign up for a new credit card. “He said: ‘Take some money out,’” recalled Mr Kastriotis, an Athens lawyer.

That friendly warning was meant to protect an ageing customer from the risks of a fully fledged run on Greek banks, a worry that has stalked the country’s strained financial system as the crisis has dragged on.

Run first... vote later

Greece's planned referendum on the latest bailout, announced as polls show its citizens reject it, has thrown the whole pack of cards up into the air. Bank runs, disorderly default, a Greek exit from the euro and vicious contagion elsewhere no longer look like wild scenarios.

If the Greeks vote No in a referendum that is likely to take place in January, that aid may also disappear. Given that Athens only has enough money to pay its bills until early next year, it could then be forced into a disorderly default. The country's banks would then go bust because they hold huge sums of Greek government debt, causing the economy to plunge further into the abyss. Greece would have little choice but to quit the euro. But that would bring with it mayhem not least because Athens is still running a primary budget deficit. With nobody willing to provide it with funding, the government would have to embark on even more severe austerity.

Papandreou may hope that such a nightmare scenario will shock his fellow citizens into voting Yes. But such scare tactics could actually trigger problems before the Greeks even have a chance to vote. Depositors have been gradually taking their money out of Greek banks. Faced with the possibility of a No vote, an exit from the euro and the bankruptcy of their banks, a bank run could accelerate. As of August, there was still 189 billion euros of deposits in Greek banks. The European Central Bank would then have to decide whether to allow the central bank of Greece to continue making emergency loans to the country's banks or force their bankruptcy even before the referendum.

From Reuters

A word in your ear...

Want To Defeat The Banks? Stop Participating In The System!

... if we want to fight back against a system we cannot take back through traditional means, then we must learn to walk away. If the system feeds us, clothes us, and shelters us at will, then ordinary protest is pointless. Our tender parts are in a rusty vice on the autocratic workbench and until we pull them out, no amount of screaming and pounding will improve our situation. Independence is won through the constant striving for self responsibility. Freedom is won through a position of personal strength, not weakness and self-enslavement.

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