In the last few weeks, market analysts have ratcheted up fears about a run on Greek banks. Now, some experts say those fears are beginning to materialize.
The photographs above of Greek citizens pulling cash from ATMs were captured today and yesterday by Reuters and Russian Market following an announcement by Greek Central bank head George Provopoulos that Greeks pulled 700 million euros ($891 million) from the country's banks on Monday. Does that huge sum equate to a run on the banks? It depends who you ask.
This is the beginning of a run on banks. Zero Hedge blogger Tyler Durden fears the worst as he passes along pictures of ATM lines in Greece. "A Greek banking system which is now virtually shut out of any extrenal funding except for the ELA, where it has a few billions euros in access left, will be unable to deal with hundreds of millions in deposit outflows," he writes. "This may be the beginning of the end for Greece, just as Buiter and later JPM warned over the weekend." Similarly, Z6Mag editor Allan Soldner says the withdrawals this week show the first signs of a run, noting yesterday that the Dow, S&P and Nasdaq all ended down, along with the precious metals market. "ATM lines are often the hysteria that starts the ball rolling even worse in any bank run because people walking by start asking if they should be doing the same."