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2015-02-05

Greek Finance Minister met ECB president. Analysts said the ECB statement was a sign the meeting had not been a success.

ECB has effectively just given a green light for Greek bank runs

A negotiating move to let Greece see just what kind of chaos this will create ahead of the big D-Day on Feb 25th when ELA could be withdrawn?

Earlier on Wednesday, Greek Finance Minister Yanis Varoufakis, met the ECB's president Mario Draghi to discuss the country's bailout. Analysts said the ECB statement was a sign the meeting had not been a success.

BBC 5 Februry 2015

Emergency liquidity assistance (ELA) 

Ambrose: ECB's decision to reject Greek collateral is entirely political. Ultra Vires. Only prime ministers have authority to force states out of €. This is a spectacular blunder by the ECB. They have pre-empted the Council. Courts will crucify them

http://www.telegraph.co.uk/finance/economics/11391377/ECB-tightens-the-screw-on-Greece-with-plan-to-cut-funding-earlier.html

Back in 1856 one of this newspaper’s editors, Walter Bagehot: 
The need for central banks to rescue banks during crises. 

Given not only the inevitability of such moments of panic but also finance’s systemic role in the economy, a government had to devise some special rules to make finance safer. But the bail-out charges should be punitive. 

The Economist editorial, 12 April 2014



Bank run, The beginning of the end

http://www.nejtillemu.com/greklandphase3.html#0512run

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