Pretty sobering to read about what regular Greeks are doing with their bank accounts--they're taking their money out. Many have to, due to job loss or lost pensions. Many others are doing it to get their money out of the banking system or even out of the country.

Unfortunately, all bank runs (and this is one in slow motion) tend to become self-fulfilling prophecies at some point. Even if the reality is that the bank is OK, just the perception of weakness can lead to a run, which leads to the collapse of the bank. And even if it doesn't, less deposits means less money to lend out, again, throttling the bank. While big, money center banks have other ways of making money, smaller local or regional banks and credit unions depend on this business model.

You can read about it in Speigel Online here.