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US, UK, Eurozone Banks Face Collapse: Global Banking System Insolvent

Discussion in 'The Economy' started by Tropo, 20th Feb, 2009.

  1. Tropo

    Tropo Well-Known Member

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    US, UK, Eurozone Banks Face Collapse: Global Banking System Insolvent

    "The unfolding debt drama in Russia, Ukraine, and the EU states of Eastern Europe has reached acute danger point" says Ambrose Evans-Pritchard in Failure to save East Europe will lead to worldwide meltdown .
    Stephen Jen, currency chief at Morgan Stanley, said Eastern Europe has borrowed $1.7 trillion abroad, much on short-term maturities. It must repay – or roll over – $400bn this year, equal to a third of the region's GDP. Good luck. The credit window has slammed shut.

    Not even Russia can easily cover the $500bn dollar debts of its oligarchs while oil remains near $33 a barrel. The budget is based on Urals crude at $95. Russia has bled 36pc of its foreign reserves since August defending the rouble.

    "This is the largest run on a currency in history," said Mr Jen.
    more ..........US, UK, Eurozone Banks Face Collapse: Global Banking System Insolvent :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website
     
  2. Chris C

    Chris C Well-Known Member

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    AHAHAHA! The best comment in this article was this:

    The article was a good read, albeit just highlights how boned the world is.

    *runs off to buy more gold and sell IP*

    Since the beginning of Bear Stearns, governments have been bailing out companies, but after every bailout, another collapse is imminent, not because of interdependence, but because the system is broken. The reality is any entity carrying high levels of debt on the premise of continued growth is boned, that's includes mom and dad investors, funds, businesses, companies, states, government - everyone. The governments can't bailout every debt baring entity because it's just a transfer of debt, which doesn't solve the problem.

    It all comes back to us choosing do we follow Mugabe or the Japs.

    I just feel sorry for all the fiscally responsible countries out there that have been working hard and saving there pennies only to find the world is planning to dump truckloads of fiat currency into the system to make up for all our poor spending and non-existent work ethic.