Beware of Lurking North Africa & EU Bank Runs
by Gordon T. Long
This is a warning to prepare for potential stealth bank runs cascading from North Africa and Ireland through to EU regional banking centers.
Stealth bank runs are the unrecognized and perilous serpent lurking presently below the European financial surface. They prey on slower moving archaic bond vigilantes and anyone else swimming in these dangerous uncharted waters.
Investors need to fully appreciate that a modern bank run looks and operates differently than what is depicted in the movies and what we most likely expect to occur!
For starters, it isn’t the individual depositor lining up, it’s now Corporate CFOs or Treasurers at their terminal en masse!
Secondly, it isn’t driven by local depositors; it is now driven internationally by Corporate Finance committees!
Thirdly, there are no telltale line-ups at bank doors. It is stealth, which will happen in an unexpected electronic ‘flash crash’ panic blur!
Today, a triggering event will initiate global ‘key strokes’ that will move unprecedented amounts of money within hours.