This is an “Amber Alert” day in the markets. “Greeks Line Up at Banks; ATMs Run Dry” was the headline over at the Drudge Report. Versions of it ran throughout the financial media.
Greece is the canary in the coal mine for what could one day happen to your savings. You’ll recall our prediction: In a crisis, banks will move fast to block access to your money.
First, they will limit withdrawals. Then they will either close their doors or run out of cash. That’s what’s happening in Greece right now…
When the canary dies, you know the air is poisoned …
Photo via forbes.com
The showdown going on there for months is reaching a climax. The Greek government has announced it will put creditor demands to a popular vote.
“Hey, how do you feel about paying our national debt?” they’re going to ask the hoi polloi. And how do you think the hoi polloi are going to respond? The best guess is they’re going to say: Let’s not.
Which will leave the banks cut off from new funds… and short of old ones. Smart depositors figured this out long ago. They took their money out of Greek banks. But the rest of the people are now wising up. In effect, they’re voting with their money – getting it out while they still can.
Naturally, the banks tried to protect the money that isn’t theirs. Piraeus Bank and Alpha Bank limited the amount you could take out. All you could get from a Piraeus ATM, for example, was €600 ($667).
Branch office of Piraeus Bank in Athens
Photo credit: ANA-MPA
This made people more eager than ever to get their hands on their money. Lines formed at ATMs on Saturday. One banker estimated that €110 million ($122 million) left the banks by 11:30 a.m.
Not all banks are open on Saturday. But
Originally appeared at: http://davidstockmanscontracorner.com/greece-is-the-canary-in-the-coal-mine/
Greece Is the Canary in the Coal Mine is a story from: BitcoinWarrior.net