Greece Entering Total Liquidity Crisis?

Greece liquidity drying up

News that a number of banks, among them Commerzbank, are pulling its repos with Greek banks, reveals the Greek crisis is now entering into being a liquidity crisis again.

Pulling the repos means the liquidity in the Greek market is basically dead.

Commerzbank is important because it's among the largest repo counterparties to Greek institutions. Pulling repos is basically the liquidation of assets, which will force banks to sell whatever assets they can at whatever price they can get for them to provide even one more day of liquidity.

Essentially what this is is the overnight lending market. Add to this the continual run on banks by depositors and it looks like Greece is on the verge of total loss of liquidity.