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February 27, 2015

Opa! Greek Banks on Fire: Deposits Plunge To 2005 Levels

By Anthony B. Sanders via David Stockman's Contra Corner

According to the Bank of Greece, bank deposits have declined to 2005 levels. Hey, I thought CNBC and Fox Business talking heads were saying “All Quiet on the Gyro Front”!


greekdepoopa

Apparently, the Greek default crisis is not over yet (in fact, it will be ongoing), although the 10Y Greece sovereign debt yield is considerably below its peak from the last time Greece threatened to default on its debt.
greece10ynwq.

The Greek 3Y sovereign yield is 13.38 percent. The German 3Y sovereign yield is -0.184 percent. That is a spread of around 13.50 percent (meaning that German banks can borrow at near zero rate and lend to the Greeks at 13.38 percent. Now THAT is a spread.

greeceycger

Of course, the German banks will go up in flames if Greece actually defaults.

germanbankexpgreece

Even the Bank of Greece internet banner is depressing.

bogf

Opa! Greek banks are on fire!

Courtesy Pater Tenebrarum of Acting Man via David Stockman's Contra Corner.

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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