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Errol

Bank Run?

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The Biggest Bank in France Has Suddenly Cut ATM Card Access to Cash in Half and People are Freaking Out!

I just got off the phone with Pierre Jananovic . . . La Banque Postale has lowered the limits on the amounts of cash customers can withdraw per week by 50%. First of all, for you Americans and Brits, the way France works its banking system – customers are limited to how much they can withdraw per week from their accts no matter what the balance. Now what has happened here is that Gold card members – who could take out 3,000 euros a week – are now limited to 1,500 a week. This was sudden, without warning, and people here in France are freaking out. Pierre tells me that its the first clear sign that liquidity in the European banking system is drying up.

http://maxkeiser.com/2011/06/07/the-biggest-bank-in-france-has-atm-card-access-to-cash-in-half/

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Maybe they only have Irish, Greek and Portuguese Euro's left for the machines?

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All those wheelbarrows full of cash...........

Oh wait a minute. :rolleyes:

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Done suddenly as in right now then I could understand people freaking out and what it may mean. But ZH have the mail and the detail of this is that it comes into effect on august 1st. Hardly the sign of impending doom with 2 months notice is it?

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Didn't the French only allow women to have their own cheque books in the past 10 years?

No i think you are confusing them only introducing cheque books for mistresses to husbands with a joint account in the last 10 years

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This statement only refers to ATMs. Presumably customers can still go into branches and withdraw all the cash they want?

Or just transfer the entire balance to another account.

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"La Banque Postale" is the post office bank.

People freaking out because they can no longer withdraw €3000 a week from an ATM?

If you have that kind of spending power, you're not going to be with La Banque Postale :)

PS I used to have an account with them - nice and cheap, but very bureaucratic.

PPS Actually, I don't personally know anyone in France who banks with them.

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Just gearing up for future potential bank runs, I guess, as it'll be the ATM's hit hardest with the internet banking not working due to overload (or deliberate shutdown masquerading as overload) and they can obviously just refuse to open the bank doors too.

If you can't get at your money then where's the bank run?

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No i think you are confusing them only introducing cheque books for mistresses to husbands with a joint account in the last 10 years

Hotel maids.

Cash only.

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So, what does this mean?

That the bank is nervous or is even short of cash? Or is it expecting Greece to leave the Euro/default on midnight July 31st?

Keep an eye on other banks doing similar.

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In the past week, Italy's BancoPosta, has been Having "technical" problems in paying out pensions across Italy and reports of pensioners still not getting their pensions after 5 days.

http://www.ilrestodelcarlino.it/pesaro/cronaca/2011/06/07/519989-poste_ancora_tilt_montano_polemiche.shtml

Poste still tilt, mount the controversy

Blockade of the postal system continues to create discomfort. Difficulties in particular the elderly, who are unable to collect their pensions

Pesaro, June 7, 2011 - The blocking of the postal system continues to create discomfort. For several days, in fact the offices of the province are on tilt. Difficulties in particular the elderly, who are unable to collect their pensions. But also for other citizens, the situation is not simple, forced to file mileage out of the post offices.

The major disruption occurred in the post office on Via Marinelli, where the terminals operate in fits and starts. The situation is more quiet in the central office in Piazza del Popolo, where there is active new computer system.

http://city.corriere.it/2011/06/08/milano/i-fatti/poste-ancora-caos-il-blocco-informatico-4016413285.shtml

Post still in chaos

blocked computer

The fifth day

The problem to the new computer system is putting on her knees half Italy desks. Tomorrow the Codacons asks compensation.

Queue hours to send a registered letter, and then, once in front of the door, feeling that the system does not work. Continue to the chaos caused by the blockage of new computer system, which since June 1st is creating queues and inefficiency throughout Italy. And yesterday, for the fifth day, he worked at sobs: almost impossible to be able to send a registered letter, to withdraw retirement or withdrawing the doors. The blockade has become a national event: yesterday morning from many cities of the peninsula continued to rain gripes and suggestions. From Milan (which for the Uil would be the "capital of disaster") in Rome, Naples and Palermo. "I'm sorry but it does not work the link explains an employee in an Office of Garbatella-is a national problem and we know that this creates big problems." This is the phrase which days are repeat users.

Angry users

Meanwhile, the Codacons announced that tomorrow will be the vertices of Poste italiane to establish compensation involved in blocking users: the Association ask 50 euros per person in services for expectations that exceeded two hours. However to Rosario Trefiletti and Elio Lannutti, President of Federconsumatori, Adusbef, "we must find an immediate solution." And ask companies and institutions that need to receive payments to extend the deadlines. The question was expressed also the Antitrust: "our intervention will not solve the problem, said the President Antonio Catricalà-blame it on the system, not the leadership." For Cgil, instead, "is not completely a contingency plan to cope with a situation largely predictable".

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In the past week, Italy's BancoPosta, has been Having "technical" problems in paying out pensions across Italy and reports of pensioners still not getting their pensions after 5 days.

http://www.ilrestodelcarlino.it/pesaro/cronaca/2011/06/07/519989-poste_ancora_tilt_montano_polemiche.shtml

http://city.corriere.it/2011/06/08/milano/i-fatti/poste-ancora-caos-il-blocco-informatico-4016413285.shtml

Thanks.

The translations made me chuckle !!

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How do you tackle cash in hand jobs? Reduce the amount of money that can be taken out of the system ie the ATM. Theres no limit to the purchases you can make on your card, its just reducing the cash that can be paid to cash in hand people.

This helps the French govt collect more taxes so tax dodgers end up contributing to the french economy a little more.

I'd like to see the UK Govt & Banks limit cash withdrawals like this then we can see a reduction in cash in hand jobs which fuels the black economy and tax dodgers of which there are many can start coughing up their contribution to society.

The UK Black Economy is worth £42 Billion in unpaid tax a year!

http://www.independent.co.uk/news/uk/politics/black-economy-leaves-16342bn-hole-in-britains-tax-accounts-2081696.html

In my industry building although temp retired and not fully up to date,of those I know still working most are paid cash in hand now since the downturn ( this is offered by the customer rarely do you have to ask for it) , sorry guys its the way that it is now no one trusts the state anymore.

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Just gearing up for future potential bank runs, I guess, as it'll be the ATM's hit hardest with the internet banking not working due to overload (or deliberate shutdown masquerading as overload) and they can obviously just refuse to open the bank doors too.

If you can't get at your money then where's the bank run?

Now being reported on CNN Money, regarding an ongoing Greek bank run and an interesting comment about Spanish and Italian investors buying expensive properties in London.

Greek banks under siege

By Colin Barr June 8, 2011: 6:34 AM ET

Household deposits at Greek banks have dropped in five of the past six months, falling by a total of 12 billion euros ($17.6 billion), according to Bank of Greece data. Two-year deposits tumbled 8% from a year ago in April and savings deposits plunged at a 16% year-over-year clip in March, notes Graham Turner of GFC Economics in London.

If Europe didn't have enough problems, Greece now has a full-fledged bank run on its hands.

The flight of Greek funds overseas will only add to country's financial crisis, which has Greece on the verge of accepting another bailout from the European Union and the International Monetary Fund.

But while officials may yet succeed in kicking this Hellenic can down the road for another year or two, at the very least the bank run adds unwelcome uncertainty. If enough money flees the country, it could hasten the inevitable restructuring of Greek debt – an outcome the European Central Bank is desperately trying to delay in the name of saving undercapitalized banks on the Continent.

A restructuring "will not be deferred indefinitely if Greek depositors continue to vote with their feet," Turner writes in a note to clients Tuesday. "They ultimately have the best sense of whether this level of austerity and privatization is sustainable from a political perspective."

The deposit flight is hardly surprising, considering the dire news coming out of Greece. Talk about its leaving the euro seems far fetched and has been resoundingly rejected by policymakers, but the country's road back to economic competitiveness is steep indeed.

Wages, as measured by unit labor costs, rose just 7% over the past decade in Germany but soared 50% or so in Greece – meaning that workers there are looking at steep pay cuts indeed if they are to bring the country's cost structure into line with the region's so-called core. And that is only a first step in what promises to be a long and punishing economic makeover, assuming the euro zone manages to hold together.

The woes of Greek banks follow a similar tale in Ireland over the past year. There, deposits left the country as it became clear that cleaning up the banking system would cost much more than the government had admitted.

That episode ended with the Irish getting a bailout in return for a horrific austerity program that, in typical bubble-era logic, left the investors who funded the banks' wrongheaded expansion binge untouched. The investors' luck is going to run out sooner or later -- but it is hard to gauge just when, what with Germany pushing for an extension of Greek debt maturities and the ECB screaming in a near panic, Nothing to see here! Move along!

Such is life when your taxpayer dollars are directed mostly to propping up the edifices of banks that served mostly to enrich insiders when times are good.

For now, that effort continues mostly unimpeded elsewhere in Europe. There is no sign in the data that banking fears are spreading to Spain, which is by all accounts the next big European economy on the hit list, let alone much bigger Italy.

But then, this being the year of the bank run, it is early yet to rule out problems anywhere on the periphery.

"I think Greece is in a league of its own," says Turner, "but we know there has been significant buying of top end real estate in London by Spanish and Italian investors." From one house of cards to another, as it were.

http://finance.fortune.cnn.com/2011/06/08/greek-banks-under-siege/

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How do you tackle cash in hand jobs? Reduce the amount of money that can be taken out of the system ie the ATM. Theres no limit to the purchases you can make on your card, its just reducing the cash that can be paid to cash in hand people.

This helps the French govt collect more taxes so tax dodgers end up contributing to the french economy a little more.

I'd like to see the UK Govt & Banks limit cash withdrawals like this then we can see a reduction in cash in hand jobs which fuels the black economy and tax dodgers of which there are many can start coughing up their contribution to society.

The UK Black Economy is worth £42 Billion in unpaid tax a year!

http://www.independe...ts-2081696.html

It'll probably have the oposite effect and people will hoard more cash so they'll have to print more.

Unintended consequences of a bunch of muppets trying to defy the markets.

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This statement only refers to ATMs. Presumably customers can still go into branches and withdraw all the cash they want?

ATMs are only allowed a certain limit in them in the UK mainly limit by insurance companys.

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"La Banque Postale" is the post office bank.

People freaking out because they can no longer withdraw €3000 a week from an ATM?

If you have that kind of spending power, you're not going to be with La Banque Postale :)

PS I used to have an account with them - nice and cheap, but very bureaucratic.

PPS Actually, I don't personally know anyone in France who banks with them.

It is known as La banque des Pauvres, basically only poor people bank with them. My son has an Livret A with them but he's only 5. I don't know of anyone freakin' out, it is nonsense. As it is owned by the govt the govt. would have to go bust for it not to honour its debts.

There is certainly no problem withdrawing euros in Switzerland, I took 7 grand out of a cash machine the other day (annoying delivered in a mix of 50s and 20s!).

btw it is Pierre JOVANOVIC

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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