BBC Newsnight briefly reports that at a meeting of european finance ministers on Thursday a senior official of the ECB was asked will the Greek banks be able to open tomorrow (Friday), he said yes, but I don't know about Monday.
Greece Bank Run Going Exponential
The Greek banking system has been bleeding deposits all year, having seen at least Euro 40 billion withdrawn this year, leaving behind approx Euro 120 billion. However, as the end game approaches (Varoufakis is apparently an expert on Game Theory) the rate of withdrawal has accelerated to over Euro 1 billion per day, up from approx Euro 200 million a day of a week ago, and could keep doubling every other day, which is despite ECB support on a DAILY basis without which Greece's banking system would have collapsed 5 years ago! Which means Greek banks are paying withdrawing depositors with funds from the ECB that to date totals approx Euro 120 billion because the Greek banks have been bankrupt for some time!
Even Greece's central bank panicked by opening warning the Syriza government that Greece was heading for a catastrophic crash out of the euro-zone.
So the worry for depositors is that one day, perhaps Monday, the ECB fails to provide enough liquidity to prevent a banking system collapse when the Greek banks make the call for more money and as Northern Rock illustrates, for already worried savers it only takes a media report of queues outside of banks to trigger an out of control panic reaction that no matter what the politicians state or promise has no effect on panicking savers, fearing that they will only get back a fraction of the value of their original euro deposits after Greece prints its own devalued currency.
My yesterdays article covered the dynamics of the Greek debt crisis that have their roots in the fact that Greece wants a permanent subsidy from other euro-zone member states to subsidise the Greek life style as illustrated by the fact that Greeks can retire as early as from age 26 with most retiring before age 55. Something that many other eurozone member states such as Germany cannot stomach, especially after having sunk Euro 360 billion already into the Greek black hole (read -GREXIT - Greece Wants to Become Scotland, Seeks Permanent Subsidy from Euro Tax Payers.)
It does look like that Greece is galloping towards a GREXIT, in which case that will put pressure onto the other PIIGS member states as the question will be asked who will be next, as I wrote yesterday :
The Big Problem is PorExit, SpaExit and ItaExit.
Greece in economic terms is a flea on the back of the Euro-zone elephant that could easily survive a GREXIT. But the real problem is who would be next, for soon the pressure would mount on the other PIIGS, with Portugal, Spain and Italy vying for who would be next to EXIT the euro-zone, something which the Euro-zone would not survive. Therefore that remains Greece's 'Ace in the hole', which is why they are still in the eurozone, so probably suggests that some sort of fudge will be arrived at that would only DELAY GREXIT for the fundamental reason Greece is BANKRUPT!
A GrExit would also make a BrExit more probable, whilst Putin would be dancing in the Kremlin.""
