It was confirmed by the President of Greece, “that the strength of banks is very weak right now.” Multiple reports including the President of Greece has reported that on Monday alone nearly $898 Million or €700 million Euros were withdrawn from Greek banks.
The tipping for for a Greek Bank Run has picked up steam as the news spreads across the world. As soon as the news started spreading to other news publications which started with the Wall Street Journal’s report, “Greek Depositors Withdrew $898 Million From Banks Monday” markets started to fall.
Greek run on banks seemed to fuel the loss of any positive territory the DOW, S&P 500 or NASDAQ had at the closing bell. The DOW ended down -63.35, the S&P 500 down -7.69 and the NASDAQ down -8.82.
The stock market in the US and the precious metals market fell nearly in sync. Gold bullion prices and Silver Bullion prices fell fairly significant amounts in lockstep with the drops of the US Stock market. Gold price was down $17.20 today ending at $1.545.30 at 5pm EDT and Silver price was down .65 cents today ending at $27.77 an ounce.
Other pressures on the market was the euro tumbling to four month lows when compared to the US Dollar which in turn had the same effect on precious metals pricing. What everyone is holding their breath trying to figure out is whether the Greek bank run will continue and erode the total deposits held by Greece’s Central Bank of €165.36 billion reported in March 2012.
A report from Tyler Durden at ZeroHedge.com asked the same question in a post called, “Has the Greek Bank Run Started?” On that post while mentioning the withdrawal numbers from Greek bank accounts there are also pictures that are shown there of citizens of Greece lining up at ATMs. 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. We’re sharing pictures of those Greek ATM lines below.
Photo Courtesy of @russian_market
— Russian Market (@russian_market) May 15, 2012