Friday, July 08, 2016

The European Banking System
Is Imploding
Here are 3 essays on the state of the banking system in Europe .. if you think that Europe was saved back in 2012, it's even in more trouble now .. "European Financials have fallen back to levels not seen since the Crisis was raging to the point that France and Germany floated the idea of imposing capital and border controls .. Graham Summers: "The EU banking system is leveraged at 26 to 1. Many banks are leveraged far above this. Lehman was leveraged at 30 to 1 when it imploded. People laugh that somehow that was allowed to happen in the financial crisis… without realizing that Europe’s entire €46 trillion banking system is just below that .. The whole mess is one giant house of cards. Bankrupt nations whose debt is owned by insolvent banks which use said debt to backstop trillions of Euros worth of derivatives trades. If Lehman was an obvious disaster waiting to happen what are the EU banks? And with the ECB itself now leveraged at over 36 to 1… who’s going to bailout this mess out? More and more the financial system feels like it did in the financial crisis: the obvious cracks have emerged, but 99% of investors are ignoring them." .. the Italian prime minister is trying to defend Italian banks by pointing fingers at Deutsche Bank & its problems/challenge.
link here to Summers' commentary
LINK HERE to an essay
LINK HERE to Mish Shedlock* commentary


Anonymous said...

Yeep ... not smart at all. It all comes from having unjustified warm fuzzy feelings about the lord protector , who in actual fact is quite clueless. Nigel has it right.

Anonymous said...

Friday, July 8, 2016
Goldman Hires Former EU President As Advisor

File under: High-level revolving door acts.

José Manuel Barroso, the former Portuguese prime minister and one-time head of the European commission, has been hired by Goldman Sachs.

Barroso, who was president of the European commission for 10 years until 2014, is becoming chairman of Goldman Sachs International – the bank’s UK and European operations – and will also be an adviser.