Greeks are pulling money out of their accounts at a dramatically quicker pace as the standoff between Athens and its creditors drags on, prodding the European Central Bank on Friday to raise emergency lending to the country’s banks for the second time in three days.That's over a billion Euros a day being pulled out of Greek banks. Don't worry, though, this isn't a bank run as it will take a full 30 days to exhaust bank reserves and 30 days might as well be next month which is a long time away when you consider how long it takes to get a latte at the cafe down the street while downloading the latest Kim Kardashian photos.
The lending level was extended another €1.8 billion ($2.04 billion), a Greek official said, on top of Wednesday’s upward adjustment of €1.1 billion. Steady withdrawals from banks all year have accelerated in the past week, according to Greek bank officials, rising from an estimated €400 million on Monday to an estimated €1 billion on Thursday. One Greek bank official said the trend continued on Friday with an estimated outflow of a little more than €1.2 billion.
No, this is just normal business transactions and Greek banks just need some loans to tide them over. Meanwhile, the ECB could have paid the July Greek debt bills for a few billion more and gone back to the cafe until August.
A few days ago, I blogged that I was counting on the Europeans to bail out the Greeks because it was relatively inexpensive and allowed them to further postpone the day of reckoning. That may have been wrong-headed. It may be that the post-modern, subjectively moral, secular multiculturalists who run the big European institutions will postpone all decisions until it's too late. That's what's going on now. They may arrive at Greek default through sheer sloth.
The individuals pulling their money out of the country don't operate with the same languid speed and once out, they'll be difficult to tempt back into the country. A billion a day isn't chump change and you got to figure it's only going to accelerate.
|That doesn't look like a jog to me, that looks like acceleration out of the starting blocks.|