Most of the American blogosphere's discussion of the ongoing crisis in the euro zone has concerned the governments: their budget balances, their interest rates, their prospects for economic growth. That discussion maps rather neatly onto our own political concerns.
In one of the biggest banks in the centre of Athens a clerk is explaining how his savers have been thronging to pull out their cash.
Wary of giving his name, he glances around the marble-floored, wood-panelled foyer before pulling out a slim A4-sized folder. It is about the size of a small safety-deposit box - and those, ever since the financial crisis hit Greece 18 months ago, have become the most sought-after financial products in the country. Worried about whether the banks will stay in business, Greeks have been taking their life savings out of accounts and sticking them in metal slits in basement vaults.
The boxes are so popular that the bank has doubled the rent on them in the past year - and still every day between five and 10 customers request one. This bank ran out of spares months ago. The clerk leans over: "I've been working in a bank for 31 years, and I've never seen a panic like this."
Official figures back him up. In May alone, almost €5bn (£4.4bn) was pulled out of Greek deposits, as part of what analysts describe as a "silent bank run". This version is also disorderly and jittery, just not as obvious. Customers do not form long queues outside branches, they simply squirrel out as much as they can. Some of that money will have been used to pay debts or supplement incomes, of course, but bankers put the sheer volume of withdrawals down to a general fear about the outlook for Greece, one that runs all the way from the humble rainy-day saver to the really big money.
Meanwhile, in Italy, banks are having difficulty tapping credit markets:
In Italy, one of the country's biggest banks, UniCredit SpA, faced numerous questions from analysts about the bank's short-term loans and whether disruptions in the funding market pose a threat. Executives acknowledged the market turmoil was having an impact, but downplayed its severity.
"Liquidity...is available in the market. It's very, very short [term], but available," one senior executive said.
Short-term funds typically are less stable and more expensive than longer-term commitments, one of the reasons why banks and regulators try to limit their reliance on short-dated funds.
As Kevin Drum notes, "When that happened to Lehman Brothers, it had about a week left to live. The overnight market can dry up -- well, overnight if a bank's solvency comes into question. "
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