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Talk of bank runs in Europe reached a brand new pitch today, with headlines about deposit flight from the periphery all over the place.Some of the talk might be overblown. After all, Greece has been bleeding deposits for years. And the Spanish bank Bankia — which was at one point down 20% — denied that there was anything unusual going on in that department.
But the thing about bank runs is that headlines can become reality.
Europe is now in a weird position where the next big scheduled “event” isn’t until June 17, when Greece has its revote to form its next election.
At the rate things are going, June 17 is a long way away. It’s hard to see the status quo continuing until then with markets melting at the rate they’re going.