Flash off the rumor mill, unconfirmed — it appears the Greek banks were just cut off by the ECB.
If this is true then this is the latest “Gun up the nose” game by the Germans and ECB, and is almost-certain, in this political climate, to blow up their face (and quite possibly with shooting involved on the part of the Greeks too.)
This instantly hit the Euro and US stock market, which had been having a reasonably decent day.
If true and confirmed then Greece has been effectively orphaned. This appears to be a facial attempt to stick a tourniquet on Greece’s neck, as with elections due next month cutting off Greek banks now will basically guarantee they all detonate.
Expect the incipient bank runs to resume en-masse within hours if not minutes.
Time to critical mass is now measured in days if not hours, and if acceleration occurs the weekend is the perfect time for Greek authorities to drop the hammer in the form of a bank holiday and capital controls as they will have no choice irrespective of the critical damage that will result from them doing so.
More as I’m able to learn and/or confirm it.
Update: Just repeated on CNBC – ECB stopping monetary policy operations with “some” Greek banks. Hmmm…. what’s “some” gents?