Jump to content
House Price Crash Forum

Twenty European Banks Nearly Went Bust Last Week


Recommended Posts

Do you have any clear proof of that or is it just what you suspect ?

They basically told us - if you read between the lines.

Trouble is the story was rapidly buried by Clarkson Gate.

There had been stories for a few weeks that there had been a huge withdrawal of Dollars from the European financial system

Then there was the story that the Fed and other Central banks had pumped Billions of Dollars back in

If there is a liquidity problem in the Eurozone and the ECB is not allowed to 'print' what else could be done?

I suppose it is also possible that European banks will only accept Dollars from other European banks given that the Euro could become worthless at some point.

At the end of the day we will only get vague hints about what is really happening - but something big definitely did occur IMHO.

:blink:

Link to comment
Share on other sites

They basically told us - if you read between the lines.

Trouble is the story was rapidly buried by Clarkson Gate.

There had been stories for a few weeks that there had been a huge withdrawal of Dollars from the European financial system

Then there was the story that the Fed and other Central banks had pumped Billions of Dollars back in

If there is a liquidity problem in the Eurozone and the ECB is not allowed to 'print' what else could be done?

I suppose it is also possible that European banks will only accept Dollars from other European banks given that the Euro could become worthless at some point.

At the end of the day we will only get vague hints about what is really happening - but something big definitely did occur IMHO.

:blink:

You may be right.

Personally though I believe the BOE probably has a better handle on it than that. I think one of their remits is to identify systematic problems of this nature and resolve them before they can occur.

The mechanism was probably put in place months ago. An increasing squeeze was probably identified weeks ago by the banks and the BOE was probably informed, with a point of criticality some weeks down the line. At this point the BOE would step in.

The banks would crash in the same way your car would crash if you didn't apply the brakes. That doesn't mean every car you are travelling in is going to crash though.

Ultimately it is a matter of interpretation and opinion. I do beleive though that if it was as critical and as urgent as some people suggest then it would be impossible to keep a lid on it (they didn't last time).

If there was a crisis though surely the BOE is doing its job well in this instance as the crisis was averted ?

I guess we will never know for sure.

Link to comment
Share on other sites

Oh - and the problem with the Euro is absolutely NOTHING to do with banks

It is to do with the fact that the European model is bankrupt

The banks need rescuing because they have lent money to states that are now to all intents and purposes insolvent

:blink:

...and they expect politicians to solve it over the next few days...?.... :rolleyes:

Link to comment
Share on other sites

Just because he some things wrong, doesn't mean he is ALWAYS WRONG.

Equally,CBs actions suggest just this.

Also, if you actually listen to it, the story he tells around it sounds very authentic.

I don't care that he sounds amped up.I've got no reason to accept his MF Global tanked for avoid Comex default for example.

But if " Two banks thought the world was ending last week" and more, why not?

If you think its BS, that's fine too. Just some food for thought.

Nick

Always worth a listen to these guys once in a while. But, delivery is crucial for credibility. Why do all these American guys sound the same - always over-reaching in their excitable hyperbole? They come across as snake-oil salesmen and lack any self-awareness.

Imagine John Authers from the FT delivering the same essential story. It would be much more credible because he would not over-reach. (If anything he deliberately pulls back from connecting too many dots leaving that to his audience to do for themselves.)

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.