From the WALL STREET JOURNAL:
…After a week of fruitless negotiations, Greece’s political parties couldn’t agree on a governing coalition, leaving the country in political limbo until new elections next month. The delay could deprive Athens of badly needed international aid and deepen Greece’s economic depression.
In a potent sign of Greeks’ rising anxiety, depositors withdrew €700 million ($898 million) from local banks on Monday alone, according to the country’s national bank—a significant escalation in capital flight from the country…
The steady outflow of deposits from Greek banks hasn’t yet turned into a full-blown bank run, and the European Central Bank has nearly limitless capacity to provide banks with additional liquidity. But economists have long warned that a run on banks could develop if the population fears Greece’s departure from the euro is imminent and that their savings would evaporate. A bank run could trigger the euro exit if it reaches a scale that forces Greek authorities to freeze bank accounts and print their own currency to keep the financial system alive…
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