I just got off the phone with Pierre Jananovic . . . La Banque Postale has lowered the limits on the amounts of cash customers can withdraw per week by 50%.

First of all, for you Americans and Brits, the way France works its banking system – customers are limited to how much they can withdraw per week from their accts no matter what the balance.

Now what has happened here is that Gold card members – who could take out 3,000 euros a week – are now limited to 1,500 a week.

This was sudden, without warning, and people here in France are freaking out. Pierre tells me that its the first clear sign that liquidity in the European banking system is drying up.

Comment This is a sure sign that there is a liquidity problem, and I honestly hope that everybody who lives in the euro zone understands what that means.