Tuesday, May 26, 2009
D for Debt
Telegraph: German debts set to blow 'like a grenade'
Germany's financial regulator BaFin has warned that the toxic debts of the country's banks will blow up "like a grenade" unless they take advantage of the government's bad bank plans to prepare for the next phase of the crisis. Jochen Sanio, BaFin's president, said the danger is a series of "brutal" downgrades of mortgage securities by the rating agencies, which would eat into the depleted capital reserves of the banks and cause broader stress across the credit system.
Posted by alan @ 07:49 AM (1010 views) Add Comment
13 Comments
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1. sold 2 rent 1 said...
Germany will be at the centre of the paradigm shift in 2010
This fantastic article posted last week explains the coming paradigm shift:-
Paradigm Shift Underway of Banking Power to Creditor Nations
http://www.marketoracle.co.uk/Article10817.html
Germany has been the focal point for destruction and the centre for the East-West clash for the last 100 years, with 2 world wars and the Berlin Wall
Fifth Day (1912-1932) - WW1
Fifth night (1932-1952) - WW2
Sixth Day (1952-1972) - Berlin Wall went up
Sixth night (1972-1992) - Berlin Wall came down
Germany, which is not only experiencing its own internal economic problems, but the whole of the club-med Euro zone will be looking to German taxpayers to bail them out and ultimately fire up the money printing machines.
IMHO, with the establishment of a new Middle Eastern/Russian resource backed currency, Germany and many of the Eastern and Central European states (old soviet states) will sign new deals with Russia and turn their back on NATO as their security shield.
As the article says, the UK has very little to offer in this new paradigm and we will be left out of the cold. But maybe this freedom from power structures of corrupt governments and corporations, and a destroyed economy will be the break we need to go ahead and make the final leap to revolutionise “free energy” systems
2. sold 2 rent 1 said...
If I had to put some timings on when Germany could jump ship into Russian arms, then late April 2010 looks good.
Armstrong notes 28/29 April 2010 is a significant turning point in the Russian political system
If the Eurozone has impoded or on the verge of collapse then maybe the whole of the Eurozone will be rescued by this new currency.
The collapse of the Lombard system in 1348 which plunged Europe into chaos resonates with early March 2010.
3. nomad said...
Yes, I would like to speak directly to UK Limited.
Forget the world stage. Get over yourself. Empire was a long, long time ago.
4. sold 2 rent 1 said...
So in 2010, we could be looking at the East effectively bailing out the West, and this would allow the WORLD CREDIT BUBBLE to keep on expanding.
But as Austrian Economics says "You cannot prevent the collapse of a credit fuelled bubble but merely inflate the bubble further and delay the collapse a little bit more"
We are on the road to "the end of money" but we are not there yet. This credit bubble has some more inflating to do.
And when the final collapse does happen "free energy" should be there to cushion the fall.
5. sold 2 rent 1 said...
And for those who understand K-waves:
The West is in a K-Winter but the East is in a K-Summer
So once we get over peak inflation next spring we should see things rapidly improving for the East (China and India et al). But the K-autumn glory period (debt build-up period similar to our 1982-2000) will be condensed into 1 year before the East finally arrive at their own K-winter which then puts the whole world in a K-winter simultaneously
In summary, the world crash of 2010 is delayed until 2011
6. growler said...
@1: "This fantastic article"
"fantasy" being the most appropriate word
7. general congreve said...
sold 2 rent 1 - No offence, but I suspect that before they invented the internet you use to stand on the high street with a sandwich board that proclaimed ' The End is Nigh' or some such oracle-like insight.
8. alan said...
The big German banks haven't written down large chunks of toxic debt. When they do, there will be a reckoning.
The "Bad Bank" convenient sweeps nasty stuff under the carpet till after the elections. There is no current stress testing, as we have.
9. The Number Cruncher said...
sold 2 rent 1
I have come to the conclusion that you are a paid agent/s of MI5 and come out with the balony that you do to obfiscate people from uncovering the real scandels and conspiracies that are going on.
Tell me is this true and will I now get bumped off for uncovering you?
10. sold 2 rent 1 said...
general congreve,
Nope. I was just a normal guy investigating the house price bubble
I am probably trying to push global consciousness a bit too hard at the moment.
I may have to wait until the autumn/winter for the crash to move the next level before you guys realise that this crash is the crash to end all crashes
11. growler said...
S2R1: I also think it will be a serious crash - and to learn we are now only 30-40% through it would not surprise me too much. But I don't think it will be Armageddon and a new World order under Zardoz. I can see a worst case of a few sovereign defaults as the bitterest of outcomes.
12. peeping tom said...
Sorry I'm lost with a lot of the above. All I can think is that if the currency markets believe Germany is likely to default on debt then it will reduce confidence in the Euro as a 'safe haven' currency, meaning that it is more likely to fall back near to parity with the US dollar and normality will return. The end of the world isn't nigh, unless we all get blasted away to make way for a hyperspace bypass.
13. sold 2 rent 1 said...
The Number Cruncher,
"I have come to the conclusion that you are a paid agent/s of MI5 and come out with the balony that you do to obfiscate people from uncovering the real scandels and conspiracies that are going on. Tell me is this true and will I now get bumped off for uncovering you?"
Ho ho. You are new here aren't you?