Tuesday, June 23, 2015

For The First Time Ever, Total ECB Claims On Greek Banks Surpass Total Greek Deposits.....ANOTHER PESKY FACT!

For The First Time Ever, Total ECB Claims On Greek Banks Surpass Total Greek Deposits

Greek deposits, which are generously estimated at €120 billion but in reality are lower, are less than the total ECB claims on Greek banks and the Bank of Greece, amounting to €126 billion. Debts, Lies And The Coming Crisis, OH MY!

Why is this important? Because if the ECB says "no more", and pulls a Cyprus, forcing Greek banks to procure liquidity in other ways, those Greek "assets" which have collateral value only because the ECB is backstopping them (and which would fetch at most pennies on the dollar once all Greeks stop paying their interest expense on outstanding debt in a default situation), then suddenly the reality of a Greek bail-in which could amount to up to 100% of total Greek deposits, becomes all too real.

Will the ECB use such a scorched earth approach, one which could potentially wipe out virtually all Greek deposits in the biggest "bail in" in history? For the sake of the Greek people, I certainly hope not....


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