Over the Weekend: Greek Banks Closed to Stop Withdrawals by Ordinary Greek Citizens
Greek citizens lined up to take cash out of their banks last week. It was a run on the banks by ordinary Greek citizens. As a result, banks were closed over the weekend.
So this latest flurry was just the common folk, worried that they'd be left without any money if this crisis continues as it has been. Most of them don't have any place overseas to send their money. It'll likely just go in the mattress.
While we shouldn't worry about the U.S. government closing U.S. banks at the moment, we would consider having some cash available in the event that such an unthinkable thing happens here. Then again, if you remember (as most no longer do) 2008, you might recall that the fear in the air was thick enough and that one of the things spoken of was the possibility of banks being closed if things got worse. It certainly wasn't so unthinkable then.
Or you might remember that after 9/11, some banks did not allow withdrawals for several days. I remember this because my bank's ATMs didn't work for - as I remember it - at least three days. And you couldn't walk into the bank and get cash either.
I had cash at hand, though, then and in 2008. I make it my business to learn a bit about history and part of that effort includes understanding what happens during crises of various sorts.You might think about doing the same.
It's not Greece here yet, but you never know...
Greece ordered its banks shut Monday to avert a financial collapse after the European Central Bank froze emergency loans to the nation’s lenders...You can bet those of substantial means had already taken out money over the last year or so. But in the case of the rich and powerful, they don't line up like regular folk. They've got other means, typically electronic transfers of funds to overseas destinations, keeping their money out of harm's way. While the media did report dwindling deposits at Greek banks over the last year or so, you din't find any rich or powerful Greeks broadcasting that they were withdrawing their money.
The European Central Bank froze the level of emergency aid available to Greek banks in a move that threatens to cripple the country’s financial system after a flood of ATM withdrawals.
So this latest flurry was just the common folk, worried that they'd be left without any money if this crisis continues as it has been. Most of them don't have any place overseas to send their money. It'll likely just go in the mattress.
While we shouldn't worry about the U.S. government closing U.S. banks at the moment, we would consider having some cash available in the event that such an unthinkable thing happens here. Then again, if you remember (as most no longer do) 2008, you might recall that the fear in the air was thick enough and that one of the things spoken of was the possibility of banks being closed if things got worse. It certainly wasn't so unthinkable then.
Or you might remember that after 9/11, some banks did not allow withdrawals for several days. I remember this because my bank's ATMs didn't work for - as I remember it - at least three days. And you couldn't walk into the bank and get cash either.
I had cash at hand, though, then and in 2008. I make it my business to learn a bit about history and part of that effort includes understanding what happens during crises of various sorts.You might think about doing the same.
It's not Greece here yet, but you never know...
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