While European banks may or may not succeed in delaying the inevitable unwind of the Eurozone by a month or two, the European credit catastrophe is taking on a grotesque form, first in Greece, where following news that the budget deficit will soar past an unprecedented 10% of GDP, the Greek government has halted virtually all cash outflows. Ekathimerini reports that “The government has decided to stop tax returns and other obligation payments to enterprises, salary workers and pensioners.” In other words, the entire government has now virtually halted one half of its operations - the outlays - as the country reverts even more to its status as European bank debt slave …
Read more here
My insight: With the turmoil we currently see regarding the IMF rescue funding very probably failing these signals seriously increase the risk of a financial meltdown. Anyone capable should be prepared against severe bank runs and liquidity problems during this crisis, potentially in the near future.