Wednesday, June 20, 2012

Corralito in France?

Looks like it: “In something we have not seen reported anywhere else, we received contact from a reader, Pierre J., who told us that bank branches are limiting withdrawals now almost everywhere in France. According to Pierre, they are requesting five days notice to withdraw 2000 euro.” –Mark
Hi Mark,
This has been going on for some time. I dont think it means there’s an imminent corralito but it is one of those signs that show the possibility of one or at the very least, it’s a sign of  fear of bank runs.
Europe in general is in bad shape though some countries areworse than others. The banking sysistem being strongly linked, I still advice caution no matter where you are.
Join the forum discussion on this post!


Anonymous said...

I have four accounts (Perhaps I should have more) and I can go to any ATM and withdraw $300 from each. I have done this in the past to amass thousands in a few days in anticipation of purchasing PM's.

Don Williams said...

1) Hmmm. "NEW YORK (Reuters) - The S&P 500 index fell more than 2 percent late on Thursday as data raised worries about global growth and a bearish note on the markets from Goldman Sachs added to the weak tone."

2) That second term for Obama is looking a little shaky. I got this email from the leftist group MoveOn this morning:

"Dear MoveOn member,
You haven't yet voted whether or not MoveOn should endorse President Obama's re-election. Voting closes tomorrow at 9 a.m. Eastern, so please take a moment and cast your vote today.


Dear MoveOn member,
We have a big decision to make.

At MoveOn, members vote on any election endorsements we make. Today we need to decide whether to make an endorsement in the presidential race. The outcome of the election is far from decided—polls are showing that this could be a very tight race—so our work could make a big difference.

If MoveOn members vote to endorse President Obama, we'll campaign hard to re-elect Obama and to defeat Mitt Romney. If MoveOn members choose not to endorse Obama, we won't spend our time and resources on the presidential election. It's up to you."

Don Williams said...

Meanwhile, to cheer my right wing buddies up here, I offer this from the leftist "Democracy Now":
"In 2008, Barack Obama pledged to raise the minimum wage every year once elected, but the hourly rate of $7.25 hasn’t increased since 2007. Low-wage workers now make far less than they did four decades ago. Last week Illinois Democratic Rep. Jesse Jackson Jr. introduced the Catching Up to 1968 Act of 2012. It draws its name from the idea that the federal minimum wage would be $10.55 an hour now if it had kept up with inflation over the past 40 years. While the bill has about 20 co-sponsors so far, President Obama has yet to endorse it. We speak to longtime consumer advocate and former presidential candidate Ralph Nader. "The U.S.’s federal minimum wage is lower than all Western countries," Nader says. "This is basically an issue that reflects the craven, cruel nature of the Republican Party on Capitol Hill, but it also reflects the caution, the cowardliness, the betrayal of the Democratic Party of its core constituency."

Looks to me like Romney's strategy is obvious: If a sparrow falls out of a tree in Kansas, claim that it is Obama's fault.

Don Williams said...

PS Forgot to note: Ralph Nader did not address the refunds (credits) that the IRS gives back to low income people on the US tax returns. In some cases, low income workers can get back more money than what they paid in taxes.

I haven't worked the numbers, but that might raise the US low minimum wage up closer to the EUs. You really have to work out the after tax incomes when comparing countries. But the point about US lower income wages being stagnant the past several decades --in both Democratic and Republican administrations -- is true.

Maldek said...

Here is a bit more info - when you read it in context you will understand why it is of importance.

"Austria" (not to confuse with australia) did double the fine from Eur 50.000 to Eur 100.000 today for bringing more than Eur 10 000 cross border without detailed fiscal declaration in advance.

Anonymous said...

Thanks for the perspective, FerFAL.


Anonymous said...

Dear don williams
Increasing the minimum wage increases unemployment. You should invest in an economics textbook instead of listening to union propaganda.

Don Williams said...

1) Re Anon's comment "You should invest in an economics textbook"
I would suggest you invest in Yves Smith's book "Econned" to remedy this unjustified respect you have for the religious cult known as "economics".

Even Nobel Winners Paul Krugman and Joseph Stiglitz have said that the entire discipline needs to be rebuilt from the ground up to fix its obvious failures.

Of course, that repair will be impossible because of the profession's paradigm that the unwashed describe as "He whose bread I eat his song I sing". See the documentary "Inside Job" for why our most influential economists continually sing the song of the richest 1%.

In the meantime, note that taxes on the rich were much higher in the 1960s and the minimum wage was much higher if adjusted for inflation. Then compare the low unemployment of that time with today's.

Don Williams said...

Update re the vote by MoveOn (a major leftist group in the USA) re whether to endorse Barack Obama for President. 91% voted yes. Which means 9% (including myself) voted no.

Here is a news article re how the leftist movement is unhappy with Obama, although many of them will hold their noses and vote for him given the Republican alternative: