The Stealth Bank Run in Europe
By Joshua M Brown
Today the markets should bounce on the tentative Moodys affirmation of our AAA rating, some decent earnings news/ sellside analyst chatter and a deeply oversold condition. The case for a “dead cat bounce” has been made perfectly by my man Zor so hit this post before the open:
We Are Crashing Tomorrow (ZorTrades)
Anyway, I’m getting all kinds of emails and phone calls with anecdotes about the stealth bank runs happening in Greece and Italy. People are pulling out cash from their accounts and putting it into safe deposit boxes, in vaults and even bringing it home.
The Guardian has some crazy details:
“Every time the markets move, I get phone calls,” says an Athens-based fund manager. “They’re from investors asking: ‘How can I get my money out of the country?’ ”
One senior investment banker is more blunt: “People are scared that the government doesn’t know what the fuck it’s doing.” He tells a story about an acquaintance who took out €30,000, wrapped it in a bag and stashed it in his garage. “The bag had previously had some food inside,” he says. “So it attracted rats, who ate the notes.”