“Europe On Eve of Banking Armageddon Which
Will Dwarf 2008 Global Crash, Warns Expert”
“Germany, Italy, Switzerland, Britain and France are facing the catastrophic consequences of ‘over leveraging’ as Europe’s biggest banks prepare to release their latest results over the next two days. Analysts say the potential for a cataclysmic failure could spread like a wild-fire hitting the continent (Europe) and beyond as the true extent of deep troubles in the international banking sector are revealed. The IMF and German governments have refused to step in to prop-up struggling banks but risk analysts are warning Deutsche Bank, RBS, Lloyds, Unicredit, Intesa SanPaolo, and BMPS could all need a state bail out. And it’s going to be a wake up call for the whole of Europe say experts who fear the reports are not going to be good for anyone.
With alarming similarities to the 2008 global financial crash, the latest results could spell disaster not only for the wealthy bankers paid to operate the system but for ordinary savers. New York based David Hendler of Viola Risk Advisors says the next two days could have serious ramifications for the entire globe. He said: “Like autumn leaves falling from the mighty oaks, the incredible yellows, oranges, and reds, will turn and rot into the ugly browns and black detritus, leading to smelly and then crumbled leaves.
Once a mighty European bank, unfortunately, Deutsche Bank is going down a“death-spiral” path and much of the big European banks are too, whether due to their own transgression or sucked down into the ocean depths by the biggest bank in Europe, Deutsche Bank. Compounded by a crippled Italian banking system with no easy way out, and anemic French banking and half-hearted British banking, these big European region banks do not present any good merger saviors.
Don’t look to the Swiss which are always insular and with Swiss banking continuing in its fortress-like capital wall building mode cannot handle troubled balance sheet banking target. Also, with Swiss banks formerly old reliable asset management business continuing to slow whether in China region or Europe and America, they are revenues challenged. Spanish banking, though experiencing sluggish revenues seems to be buoyed by its lock on its domestic retail banking markets. But don’t look for the ‘conquistador banks’ for any mercy mergers either.”
Mr Hendler, who held a conference call with global investors yesterday, is preparing to publish a lengthy report tomorrow when the results begin to become clear. He added: “For the most part, all of the above-mentioned German, British, Italian banks either require a State government intervention or they have already been intervened. SocGen is the most dangerous French bank with huge systemic risk, ranking as the third highest exposure at $72 billion according to the NYU V-Lab. More troubling is that based on the European Banking Authority stress test forecasts. For the year 2017 it would take SocGen 11 years to rebuild its capital from pre-tax pre-provision operating earnings.
That is just plain too long a capital rebuild period and speaks to the company’s dangerous systemic risk profile. Yet, if the biggest bank in Europe is scrambling, this condition could spread like a wild-fire and encircle much of European banking leading to a possible state of contagion aka as a European regional banking systemic liquidity crisis a point we made in early September.”
Editorial Note: If things are as bad as many European newspapers are reporting today, this banking problem could collapse the Euro as a currency! Once the Euro collapses, the U.S. Dollar will have only about two weeks of life left to it, before it too, collapses. What this means is that anything YOU own which is denominated in “Dollars” will face a disaster. This includes, stocks, bonds, and all the accounts which hold stocks and bonds, like your IRA, 401-K and the like.
It is imperative that you have some “wealth preservation” in the form of things which do not lose value: Gold, Silver, Real Estate, etc. Further, if you choose to own Gold, Silver or other precious metals, you must possess them, do not merely buy “paper” gold and “paper” silver which claims that the seller will hold the physical metal for you. Those are scams; the holder of the physical metal has sold the same ounce of Gold to over 500 other people. That means if they all call and demand delivery, ONE person gets the physical gold and everyone else gets bubkus.
This is about preserving money. We are entering a very serious time in Global finance and things do not look well for the future. All of you remember what happened when Lehman Brothers went belly-up in 2008. Well, Deutsche Bank goes under, you need to understand that they are SEVEN TIMES LARGER than Lehman Brothers was, and this time, no governments have any money left to bail anyone out. If Deutsche Bank goes under, everything else will follow- very quickly.
It is important that we make clear that we are NOT licensed financial advisers and we are NOT qualified to give financial advice. You should consult with a licensed financial adviser before making any financial decisions. Having said that, we can read the writing on the wall as well as any other common person. The writing on the wall spells financial Armageddon and it may very well begin tomorrow – Thursday, October 27.”