Don't mention the "RUN" word

[OwlHoot]

In their morning news, the BBC has been deathly quiet about the EU, scandalously not mentioning it at all this morning.

But in fairness the grim and deteriorating news still leaks out via their blogs:

Don't mention the R word

If you're wondering what a bank run is, think of Northern Rock. It is a sensitive topic, not least here at the BBC.

But it is a subject that is being increasingly discussed by investors and economists in the eurozone. One can assume it is also being discussed in private by European policymakers too.

Because the fact is that Europe's banks already face what amounts to a slow-motion run by big institutional investors.

:::

[russell]

In their morning news, the BBC has been deathly quiet about the EU, scandalously not mentioning it at all this morning.

But in fairness the grim and deteriorating news still leaks out via their blogs:

Don't mention the R word

This is very worrying, a Europe wide bank run would cause Armageddon. Merry Xmas.

[TimberWolf]

Yeah, things are so bad that the value of the Euro is plummeting

[sasguru]

Yeah, things are so bad that the value of the Euro is plummeting

Classic misunderstanding of economics there.
The Euro is retaining its value because it's the default currency of Germany, for the moment.

[TimberWolf]

Classic misunderstanding of economics there.
The Euro is retaining its value because it's the default currency of Germany, for the moment.

That and that non-Euro currencies aren't in great shape either.

[PAH]

That and that non-Euro currencies aren't in great shape either.

Yep, everyone's f'd. Otherwise the yank dollar and pound would be fairing better against the euro.

So should we withdraw all our savings and keep them in the house instead? Just in time for crimbo and all the thieving scumbags looking for jewellery and presents to steal?

BofE can always print more money if a bank goes under. They won't do that if you get robbed. Ask any daft OAP who has been mugged for thousands after foolishly carrying it around with them while out shopping.

Unless any home contents insurance covers loss of large amounts of cash?

[TimberWolf]

Yep, everyone's f'd. Otherwise the yank dollar and pound would be fairing better against the euro.

So should we withdraw all our savings and keep them in the house instead? Just in time for crimbo and all the thieving scumbags looking for jewellery and presents to steal?

BofE can always print more money if a bank goes under. They won't do that if you get robbed. Ask any daft OAP who has been mugged for thousands after foolishly carrying it around with them while out shopping.

Unless any home contents insurance covers loss of large amounts of cash?

Isn't printing robbery too? And hence why Merkel isn't keen on doing it. That and the fact* that no one has ever successfully printed themselves out of debt, as the UK and US are hell bent on doing.

*I've no idea if this is fact or not, in actual fact.

[sasguru]

Isn't printing robbery too? And hence why Merkel isn't keen on doing it. That and the fact* that no one has ever successfully printed themselves out of debt, as the UK and US are hell bent on doing.

*I've no idea if this is fact or not, in actual fact.

Britain has used inflation to get out of trouble many a time.

[TimberWolf]

Britain has used inflation to get out of trouble many a time.

Yeah, but found it so hard to escape its grips that it was regarded as an economic pariah until recent times, since when it's been regarded as saviour.

[russell]

I posted about this a few days ago, looks like the BBC economists agree with me.