Thursday, July 14, 2016

Some Disturbing Figures About 
The Upcoming Banking Crisis
Sovereign Man essay makes an analogy to Prussia's historic economy & banking structure to today's world dependent on Wall Street mega-banks for global trade .. "Today, banks are up to the same tricks as they were 10 years ago, except they’ve taken things to a whole new level. And Deutsche Bank is leading the charge. Deutsche Bank, on the other hand, has a capital level of less that 3% (just like Lehman), and an incredibly risky asset base that boasts notional derivatives exposure of more than $70 trillion, roughly the size of world GDP. Even the IMF has stated unequivocally that Deutsche Bank poses the greatest risk to global financial stability. And the IMF would be right… except for all the other banks. Because, meanwhile in Italy, nearly the entire Italian banking system is rapidly sliding into insolvency. Italian banks are sitting on over 360 billion euros in bad loans right now and are in desperate need of a massive bailout. IMF calculations show that Italian banks’ capital levels are among the lowest in the world, just ahead of Bangladesh. And this doesn’t even scratch the surface of problems in other banking jurisdictions. In Greece, over 35% of all loans in the banking system are classified as “non-performing”. This is astounding. But what’s even more incredible is that the ratio of non-performing loans has actually been increasing for several years since the country’s supposed bailout. Banks in Cyprus and Portugal are hemorrhaging cash and reporting widespread losses .. Do yourself a favor: don’t keep 100% of your savings trapped in a risky banking system."
LINK HERE to the essay

1 comment:

Anonymous said...

yep .... the only reason the world continues to spin is because of its inertia.
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BUT don't understate it ... after all it is going to power all those wind turbines albeit indirectly.