The Global Crunch is Just Getting Started 

...companies worldwide will need to downsize and "reform". That is debt deflation, guys, that is a credit crunch. These things hurt something bad, and there's no escaping it. Bailing out banks while at the same time bleeding industries dry and shedding jobs like so many flies won't help anything recover...

…… The only way Greek banks can be kept barely alive (or, if you will, the only way the dead can be kept on their feet for a while longer) is through emergency injections of capital (bonds) underwritten by all Eurozone citizens (and the rest of the world through the IMF)……. as all banks use (and/or already have used) their best assets as collateral for ECB loans, like LTRO, thereby shoving their other creditors and shareholders into the bleachers, the financing situation can only get worse. So people taking money out of their accounts seems the only possible consequence, in a vicious circle of self-fulfilling false prophecies……. And no, it's not just Greece, if that's what you might have thought.

Now, let's make one thing clear once more: deposit insurance is useless in all but a theoretical manner. It can make people feel good, but it won't do them any actual good when push comes to shove.

Deposit insurance in those European countries that are presently experiencing mass withdrawals (Spain announced €100 billion was withdrawn from its banks so far this year) is grossly inadequate: Italy’s deposit-insurance program is still unfunded, with banks pledging to contribute if and when necessary [!!!].

…… There is no solution. Nature, reality, will solve this mess. Not people. And reality can be a harsh mistress.

                                …….. Raul Ilargi Mendoz, The Automatic Earth.