24/10/11 - Vatican calls for establishment of ‘central world bank’

ROME – The Vatican called on Monday for the establishment of a “global public authority” and a “central world bank” to rule over financial institutions that have become outdated and often ineffective in dealing fairly with crises. The document from the Vatican’s Justice and Peace department should please the “Occupy Wall Street” demonstrators and similar movements around the world who have protested against the economic downturn. “Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority,” was at times very specific, calling, for example, for taxation measures on financial transactions. “The economic and financial crisis which the world is going through calls everyone, individuals and peoples, to examine in depth the principles and the cultural and moral values at the basis of social coexistence,” it said. It condemned what it called “the idolatry of the market” as well as a “neo-liberal thinking” that it said looked exclusively at technical solutions to economic problems. “In fact, the crisis has revealed behaviours like selfishness, collective greed and hoarding of goods on a great scale,” it said, adding that world economics needed an “ethic of solidarity” among rich and poor nations. “If no solutions are found to the various forms of injustice, the negative effects that will follow on the social, political and economic level will be destined to create a climate of growing hostility and even violence, and ultimately undermine the very foundations of democratic institutions, even the ones considered most solid,” it said. It called for the establishment of “a supranational authority” with worldwide scope and “universal jurisdiction” to guide economic policies and decisions. –Reuters

Rise of the theocratic State: “Catholic ecumenicalism, global currency reform, and a New World political order are not separate, isolated events evolving in different spheres of the world. They are synchronous forces, actively engaged in knitting together the fabric for the emperor’s new clothes…the Vatican’s desire to steer the confluence of the world’s crumbling economic and humanistic political institutions through the Italian moral causeway is perfectly congruent with the papacy’s long-cherished ambition to reside over the modern world’s first theocratic global economic order.”

19/10/11 - Marketwatch warns EU banks will crash Wall Street

October 19, 2011 – NEW YORK – History inevitably repeats itself: Arab Spring triggered Wall Street Fall. Next, the raging European monetary collapse will ripple through America’s banking system, completing the 2008 meltdown that never ended because Wall Street fought all reforms. But now, a bigger meltdown as history repeats a dangerous cycle like the 1929 Crash and Great Depression. History will also deal a fatal blow to Wall Street. Weiss adds a key warning: No bank bailouts. America’s banking system is bankrupt, structurally and morally. Washington is broken. And thanks to the Occupiers Revolution the masses will never accept new bank bailouts. Never. They’ll toss politicians and overthrow government first. No new bailouts will be the stake in the heart of Wall Street, ending the “greed is good” power of America’s “bloodsucking vampire squid,” handing the Occupiers new political power in Washington. Weiss’s worst-case scenario highlights everything we’ve both been warning investors about for a long time. The 2008 meltdown never ended, lessons never learned. But now the end game is accelerating. Listen closely: Weiss final warning to all investors: “Get all or most of your money out of danger immediately … above all, stay safe!” Prepare for the coming bank collapse. And discover how this historic scenario will empower the Occupiers message to get money out of elections: “One citizen. One dollar. One vote.” –Market Watch

Yes, coming soon says Martin Weiss in his “7 Major Advance Warnings,” which is “bound to have a life-changing impact on nearly all investors in the U.S. and around the globe.” His new Weiss Ratings warnings are the “most important” in a 40-year career. The stress on Wall Street banks will force them back to Congress for more bailouts…

1. Greece will default very soon
2. The contagion of fear will spread
3. European Mega Banks will collapse
4. EU governments suffer new credit rating downgrades
5. Spain and Italy next to face defaults on their massive debts
6. Global debt markets will suffer a critical meltdown
7. Vicious cycle: sovereign defaults, bank failures, global depression

contribution Luisport

9/10/11 - Financial Meltdown: The men who crashed the world – video

(c) Al Jazeera 2011 – Part 1

(c) Al Jazeera 2011 – Part 2

4/10/11 - Alex Jones Goes Apesh*t, Sweating And Panting: Globalist Banking Cartel Hijack Occupy Wall Street

Alex Jones will gives a special broadcast today on the Occupy Wall Street protests that have been swelling for weeks. His worst concerns have been confirmed about the true nature of who has been steering the demonstrations.

4/10/11 - Economic Doomsday: World's Experts Predict 'Total Disaster'

Earthquakes, hurricanes, tsunamis, nuclear meltdowns...all fade into insignificance compared to the coming whirlwind of financial Armageddon many of the world's top experts see directly ahead.

Economic Doomsday some are calling it. And now—they say—it's literally unavoidable. Starvation, collapse and death on an Apocalyptic scale.

Will it be as bad as the Great Depression or World War Two? Worse, say many economists. Those events were a walk in the park compared to the total economic collapse coming to scores of countries.

Fed Chairman Bernanke's monetary policy a 'complete failure'

What to expect

The world's financial experts...they almost sound like conspiracy theorists, but these are some of the most respected financial insiders.

Here's what they expect during 2012: civil wars breaking out all over the planet; currencies collapsing into worthless paper; and roving bands of desperate, violent thugs willing to maim or murder for gold, silver—or even cans of beans.

In essence, anarchy will be breaking out all over as governments desperately respond with tyrannical martial law attempting to restore a semblance of order to masses of frightened, starving citizens.

Widespread food and water shortages are expected and food and energy prices will soar.

Remember everyone celebrating the arrival of the Millennium? People wanting to put the upheavals of the 20th Century behind them? Welcome to the 21st Century.

Find the tallest building and jump off?

Although none of the experts are advising jumping off buildings, they don't have much advice about anything. Some are at a loss over what to do with their own portfolios let alone any assets others might have. That's because they predict almost everything will plummet:

Real estate: think it's bad? It'll get worse, they warn.

Stocks: the Dow was below 1,000 in 1982. It can reach that again say market pundits.

Bonds: may look good on the surface, but with highly inflated, illusory values they'll be about as worthless as paper currency. They might be good as pretty wallpaper, for those that happen to still live in dwellings with walls.

Banks: many more will fail including some of the largest in the world. Same goes for some of the top insurance companies.

Annuities: although the principal is guaranteed, the currency they're based on is not. If it takes a barrel of dollars to purchase a loaf of bread, think what the "money" in an annuity will be worth. That's right, almost nothing.

         This time the sky IS falling

The 12 disciples of Doom

Here are just twelve of the thousands of financial experts that are predicting the worse case scenario is really going to happen this time. No Chicken Little among them—the sky IS falling.

Ann Barnhardt: The head of Barnhardt Capital Management, Inc.: "It's over. There is no coming back from this. The only thing that can happen is a total and complete collapse of EVERYTHING we now know, and humanity starts from scratch. And if you think that this collapse is going to play out without one hell of a big hot war, you are sadly, sadly mistaken."

Gerald Celente: Trends Research guru to Fortune 1000 companies, Celente's accurately forecasted hundreds of social, business, consumer, environmental, economic, political, entertainment, and technology trends over the decades. What does he see on the immediate horizon? "America is in for a Great Depression and riots by 2012."

Stefan Homburg: Dynamic leader of Germany's Institute for Public Finance: "The Euro is nearing its ugly end. A collapse of the monetary union now appears unavoidable."

And when Europe collapses, America, Russia, and China will soon follow.

George Soros: Evil genius to some, just insightful and hard-nosed to others, Soros says: "Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation."

And Soros always puts his money where his mouth is...he's dumped Europe's sovereign debt, calling it poison.

Mohammed El-Erian: The PIMCO CEO sees: "These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delver their balance sheets in a very drastic and disorderly fashion...Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy."

Since he spoke those words the crisis has accelerated.

Attila Szalay-Berzeviczy: the global head of securities services at UniCredit SpA (Italy's largest bank): "The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits."

Nigel Farage: An EU Parliament Member: "I think the worst in the financial system is yet to come, a possible cataclysm and if that happens the gold price could go (higher) to a number that we simply cannot, at this moment, even imagine."

Carl Weinberg: Respected chief economist at High Frequency Economics: "At this point, our base case is that Greece will default within weeks."

Most economists agree that when Greece fails Italy, Spain, Portugal—and maybe France—will also collapse.

Alan Brazil: A top Goldman Sachs strategist thinks, "Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the world’s base currency?"

The short answer is No.

According to the Wall Street Journal, Brazil believes that "as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China's growth may not be sustainable."

Josef Ackerman: One of the top, most savvy bankers in the world and CEO of Deutsche Bank: "It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."

Which is something that is happening even as this is written.

Alastair Newton: A world-renown strategist for the giant Nomura Securities, London office: "We believe that we are just about to enter a critical period for the Eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis."

Lakshman Achuthan: With ECRI: "When I call a recession...that means that process is starting to feed on itself, which means that you can yell and scream and you can write a big check, but it's not going to stop."

Falling dominoes

Financial experts across 60 countries are publicly warning of the impending global financial disaster. The world's politicians—and the governments they run—have painted their economies into a corner after decades of mismanagement and now there's no safe place to hide.

The dominoes will fall like this: the European Economic Union (EEU) has run out of options. Servicing debt with debt is a losing proposition. It's like flapping your arms wildly after you've fallen off the edge of the Grand Canyon.

The EEU's demise will cause the cracks in America to widen until everything tumbles into the gaping pit.

Massive trade disruption and lack of revenue will cause the Eastern European, the Russian Federation and Chinese economies to collapse.

Africa will become a seething hellhole and Australasia will fall as well. Another warning sign: New Zealand just had its sovereign debt downgraded.

Dead

Most of the world is broke. Dead broke. The stage after being dead broke is just dead.

Countries that are self-sufficient in the Southern Hemisphere might fare better—among them Chile, Brazil and Peru. The irony is not lost there, however, as just several decades ago Brazil had a shaky economy hovering near the bottom of the world's economies.

Yet if the dominoes do fall, Brazil may emerge as the "last man standing" and the world's new superpower.

For more on this story see Prophets Of Doom: 12 Shocking Quotes From Insiders About The Horrific Economic Crisis That Is Almost Here.

3/10/11 - World markets fall as fears grow that Greece will miss deficit targets

Fears are growing that Greece will miss its deficit targets despite plans to axe 30,000 civil service jobs by the end of the year.The Greek cabinet will meet today to finalise details of drastic cuts aimed at saving £6.9billion so it can receive the final installment of its 2010 bail out.
Concerns that Greece faces a worse-than-expected recession saw the FTSE open 2.5 per cent down and Asian markets also fell sharply in - with Japan's Nikkei losing 2.3 per cent.
The parliament meeting follows three days of talks with Greece's creditors - the European Commission, the European Central Bank and the International Monetary Fund about a government proposal that the civil service cuts will come mainly from placing staff nearing retirement age on 'reserve,' or suspending them at reduced pay.
State workers who make up a fifth of the Greek workforce are guaranteed jobs for life under a constitution that bans firing government employees in virtually all circumstances. Read More

3/10/11 - Eurozone crisis: there are no miracles in Greek tragedies

Just before the roof fell in on Kweku Adoboli, the UBS trader whose “miscalculations” cost his bank $2.3 billion, he posted a message on Facebook: “I need a miracle.” Keep an eye out for something similar from George Papandreou, Greece’s prime minister, who has been telling us: “Let everyone be certain, Greece will not default, we will not let it default.” Nothing short of a supernatural event is now required for that promise to be met – the Greek bubble is about to pop.

There are similarities between Mr Adoboli’s flame-out and Greece’s imminent bankruptcy: failure of regulation, credulity of investors and a desperation to throw good money after bad. The difference, however, is scale. UBS’s losses are shocking but manageable. By contrast, when Greece repudiates all, or even part, of its 370 billion euros of debt, the foundations of the single currency will crack and many bystanders will be hurt.

Financial pain will be accompanied by the political humiliation of European Union leaders and their apologists in the commentariat who boasted that such an outcome was impossible because there was the “necessary will” to prevent it occurring.

The fallacy at the heart of this crisis is that every financial problem has a political solution. If only. Yet the Brussels elite and its co-conspirators at the IMF continue to promise that by “doing all it takes” they will, somehow, defy indefinitely economic gravity. This illusion of political primacy is perpetuated because a confession of impotence would not only undermine the worth of those in power but also expose the euro’s fatal flaw: monetary union without fiscal union is a marriage that weds the prudent to the profligate with no control over the latter’s spending. more

2/10/11 - Revolution Is Happening In The USA

Basically highlighting the economic plight taking hold of the country, the protesters of the 'Occupy Wall Street' Movement are seeking to introduce the factors behind the plight.

One of the posts on the Occupy Wall Street website reads: “We are unions, students, teachers, veterans, first responders, families, the unemployed and underemployed. We are all races, sexes and creeds. We are the majority. We are the 99 percent. And we will no longer be silent.”

The protesters have targeted the Wall Street because they want “to create a national narrative and have it be known how the states are taking state revenues that are being funneled to banks and corporations and then you layer on top of that the fact that they're not obligated to pay their fair share of taxes, and so that's billions and billions of dollars that could be put toward job creation and creating solutions to the housing crisis,” Rachel Laforest, the executive director of the Right to the City Alliance has told ABC News.

It is very painful to see that the middle-class Americans who have been reduced to abject poverty should now swallow their pride and capitulate to any humiliating position as they have lost their veritable status.

The protests are reaching other states as well. American activists are going to begin “Occupy Los Angeles” in solidarity with the Occupy Wall Street protests. Similar protests are taking place in Chicago and other major states. Although some cynics have tried to downplay the protests in New York and reduce them to sheer acts of protests by loafers, the truth is that they have already expressed their intention for these protests: they feel deceived by a system which has allowed Wall Street to wallow in its avarice and cause a financial meltdown and virtually shut down the country's economy. The demands of the protesters are gradually coming to light as they are being more organized. One of the innovative measures adopted by the protesters was the launching of a new Tumblr blog called “We Are the 99 Percent” in reference to the fact that 99 percent of Americans are experiencing economic hardship while only one percent are in possession of an ideal life. The blog features a series of handwritten notes regarding different economic hardships including debt, unemployment, lack of health insurance and few available jobs. It clearly and painfully states:

We are the 99 percent. We are getting kicked out of our homes. We are forced to choose between groceries and rent. We are denied quality medical care. We are suffering from environmental pollution. We are working long hours for little pay and no rights, if we're working at all. We are getting nothing while the other 1 percent is getting everything. We are the 99 percent.

2/10/11 - Prophets Of Doom: 12 Shocking Quotes From Insiders About The Horrific Economic Crisis That Is Almost Here

We are getting so close to a financial collapse in Europe that you can almost hear the debt bubbles popping.  All across the western world, governments and major banks are rapidly becoming insolvent.  So far, the powers that be are keeping all of the balls in the air by throwing around lots of bailout money.  But now the political will for more bailouts is drying up and the number of troubled entities seems to grow by the day.  Right now the western world is facing a debt crisis that is absolutely unprecedented in world history.  Europe has had a tremendously difficult time just trying to keep Greece afloat, and several much larger European countries are now on the verge of a major financial crisis.  In addition, there is a growing number of very large financial institutions all over the western world that are also rapidly approaching a day of reckoning.  The global financial system is a sea or red ink, and when we get to the point where there are hundreds of ships going under how is it going to be possible to bail all of them out?  The quotes that you are about to read show that quite a few top financial and political insiders know that things cannot hold together much longer and that a horrific economic crisis is coming.  We built the global financial system on a foundation of debt, leverage and risk and now this house of cards that we have created is about to come tumbling down.
A lot of people in politics and in the financial world know what is about to happen.  Once in a while they will even be quite candid about it with the media.
As I have written about previously, Europe is on the verge of a financial collapse.  If things go really badly, things could totally fall apart in a few weeks.  But more likely it will be a few more months until the juggling act ends.
Right now, the banking system in Europe is coming apart at the seams.  Because the global financial system is so interconnected today, when major European banks start to fail it is going to have a cascading effect across the United States and Asia as well.
The financial crisis of 2008 plunged us into the deepest recession since the Great Depression.
The next financial crisis could potentially hit the world even harder.
The following are 12 shocking quotes from insiders that are warning about the horrific economic crisis that is almost here....
#1 George Soros: "Financial markets are driving the world towards another Great Depression with incalculable political consequences. The authorities, particularly in Europe, have lost control of the situation."
#2 PIMCO CEO Mohammed El-Erian: "These are all signs of an institutional run on French banks. If it persists, the banks would have no choice but to delever their balance sheets in a very drastic and disorderly fashion. Retail depositors would get edgy and be tempted to follow trading and institutional clients through the exit doors. Europe would thus be thrown into a full-blown banking crisis that aggravates the sovereign debt trap, renders certain another economic recession, and significantly worsens the outlook for the global economy."
#3 Attila Szalay-Berzeviczy, global head of securities services at UniCredit SpA (Italy's largest bank): "The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits."
#4 Stefan Homburg, the head of Germany's Institute for Public Finance: "The euro is nearing its ugly end. A collapse of monetary union now appears unavoidable."
#5 EU Parliament Member Nigel Farage: "I think the worst in the financial system is yet to come, a possible cataclysm and if that happens the gold price could go (higher) to a number that we simply cannot, at this moment, even imagine."
#6 Carl Weinberg, the chief economist at High Frequency Economics: "At this point, our base case is that Greece will default within weeks."
#7 Goldman Sachs strategist Alan Brazil: "Solving a debt problem with more debt has not solved the underlying problem. In the US, Treasury debt growth financed the US consumer but has not had enough of an impact on job growth. Can the US continue to depreciate the world’s base currency?"
#8 International Labour Organization director general Juan Somavia recently stated that total unemployment could "increase by some 20m to a total of 40m in G20 countries" by the end of 2012.
#9 Deutsche Bank CEO Josef Ackerman: "It is an open secret that numerous European banks would not survive having to revalue sovereign debt held on the banking book at market levels."
#10 Alastair Newton, a strategist for Nomura Securities in London: "We believe that we are just about to enter a critical period for the eurozone and that the threat of some sort of break-up between now and year-end is greater than it has been at any time since the start of the crisis"
#11 Ann Barnhardt, head of Barnhardt Capital Management, Inc.: "It's over. There is no coming back from this. The only thing that can happen is a total and complete collapse of EVERYTHING we now know, and humanity starts from scratch. And if you think that this collapse is going to play out without one hell of a big hot war, you are sadly, sadly mistaken."
#12 Lakshman Achuthan of ECRI: "When I call a recession...that means that process is starting to feed on itself, which means that you can yell and scream and you can write a big check, but it's not going to stop."
*****
In my opinion, the epicenter of the "next wave" of the financial collapse is going to be in Europe.  But that does not mean that the United States is going to be okay.  The reality is that the United States never recovered from the last recession and there are already a lot of signs that we are getting ready to enter another major recession.  A major financial collapse in Europe would just accelerate our plunge into a new economic crisis.
If you want to read something that will really freak you out, you should check out what Dr. Philippa Malmgren is saying.  Dr. Philippa Malmgren is the President and founder of Principalis Asset Management.  She is also a former member of the Bush economic team. You can find her bioright here.
Malmgren is claiming that Germany is seriously considering bringing back the Deutschmark.  In fact, she claims that Germany is very busy printing new currency up.  In a list of things that we could see happen over the next few months, she included the following....

"The Germans announce they are re-introducing the Deutschmark. They have already ordered the new currency and asked that the printers hurry up."

This is quite a claim for someone to be making.  You would think that someone that used to work in the White House would not make such a claim unless it was based on something solid.
If Germany did decide to leave the euro, you would see an implosion of the euro that would be truly historic.
But as I have written about previously, it should not surprise anyone that the end of the euro is being talked about because the euro simply does not work.
The only way that the euro would have had a chance of working is if all of the governments using the euro would have kept debt levels very low.
Unfortunately, the financial systems of the western world are designed to push governments into high levels of debt.
The truth is that the euro was doomed from the very beginning.
Now we are approaching a day of reckoning.  We have been living in the greatest debt bubble in the history of the world, but the bubble is ending.  There are several ways that the powers that be could handle this, but all of them will lead to greater financial instability.
In the end, we will see that the debt-fueled prosperity that the western world has been enjoying for decades was just an illusion.
Debt is a very cruel master.  It will almost always bring more pain and suffering than you anticipated.
It is easy to get into debt, but it can be very difficult to get out of debt.
There is no way that the western world can unwind this debt spiral easily.
The only way that another massive economic crisis can be put off for even a little while would be for the powers that be to "kick the can down the road" a little farther by creating even more debt.
But in the end, you can never solve a debt problem with more debt.
The next several years are going to be an incredibly clear illustration of why debt is bad.
When the dominoes start to fall, we are going to witness a financial avalanche which is going to destroy the finances of millions of people.
You might want to try to get out of the way while you still can.

1/10/11 - Collapse Of Entire Global Banking System Is Underway Signals CEO Of Worlds Largest Mutual Fund

PIMCO CEO signals the collapse of entire global banking system underway as a panic driven institutional bank run drains French banks of nearly all their capital.
PIMCO’s CEO tells the Financial Times that the institutional bank run on French Banks has left them with as little as 1% capital against the total assets reported on their balance sheets and institutional panic in the global financial system is underway
If this is true, we are looking at the collapse of the very foundation of the entire European banking system which in turn means the collapse of an essential pillar of the entire global banking banking system
Seriously, the Europeans have been pulling their money out of banks for weeks and so have many of the world’s most important corporations. Don’t be a fool and wait until the last minute to do the same.
I provided complete background context to this story when it became evident that the bank run that started Greece had spread into French banks, then across Europe and even into China.

Global Market Meltdown Worsens: Corporations And China Join In On Global Bank Run

The Global Financial Meltdown has dramatically worsened as Corporations and China Jump Aboard The “Institutional” Global Bank Run As Banks Fall Apart As Their Seams.

Earlier today the world saw a global financial meltdown as investors dumped everything from stocks to commodities and literally everything in between.

Global Financial Meltdown: Investors Dump Nearly Everything Amidst Worldwide Market Crash

Major Stock Market Indexes, Commodities, Currencies And Everything In Between Is Being Dumped By Investors Across The Globe In The Midst Of A Global Financial Meltdown.

The financial markets across the globe are facing one of the most massive sell-offs in recent memory.
The Dow Jones Industrial average has sold off over 467 points today. When and when you add that on top of 284 point drop following yesterday’s crash FED’s statement, which announced operation ‘twist’ and warned of significant downside risk and strains in global financial markets, we have a 751 point drop in the DOW since 2:45 PM est yesterday, which is the largest 2 day slump since 2008.
There are an endless parade of economic statistics many of which are the worse since the Great Depression and World War 2 era. We have also seen 111 of the s&P 500 hit fresh 52 week lows, a drop in global currencies – beside the dollar, oil dropping into the high $70 per barrel range and gold plummeting over 5% to trade in the low $1,700 per ounce range.
Business Week points out the massive crash in U.S. stocks immediately below while CNBC points out further below that this in fact a global meltdown – investors are dumping everything.
[...]
Read The Rest…

While today’s sell off was monumental and in fact is on course for the 3rd worse week on Wall Street ever, the sell-off was on the heels of the FED’s economic outlook. Today’s Global Financial Meltdown is about to become much worse as a slew of news reports out today reveal the run on the European banks has spread to include corporations and institutions pulling their money out of banks and China finally arriving at the party.

However, it appears as PIMCO’s CEO tells us, that instead of dealing with the crisis, officials chose to deny it by reiterating for days now that the French Banks did not need to be re-capitalized.
Well, it appears the statements from officials in France were outright lies.
The Daily Baily Reports on a new article from the Financial Times:

PIMCO’s El-Erian Drops The F-Bomb: “French Banks Are Down To 1% Capital, Institutional Panic Underway”

El-Erian just screamed ‘shut their ass down‘ from New York to Paris.
French banks have 1% capital. No polemic is needed. This is a solvency and liquidty crisis.
Notice below the bold quote from the CEO of the world’s largest bond fund. Not to overstate the obvious, but 1% capital ratios imply leverage of 100:1.
Calling Helicopter Ben…Sarkozy would like you at the launch pad, immediately.
How soon does Bernanke’s central bank rain dance begin?
—
FT via Marketwatch

Meanwhile, high-profile warnings over the state of Europe’s banks, particularly in France, came from a variety of sources.
Mohammed El-Erian, chief executive of bond fund giant Pimco, warned in an op-ed in the Financial Times published Thursday that French banks could tip Europe back into recession.
Private institutions around the world have sharply reduced short-term lending to French banks, while a plunge in bank shares since August has left bank equity trading at a 50% discount to tangible book value on average, he wrote.
At the same time, El-Erian noted that the ratio of market capital to total assets for the sector has fallen to 1% to 1.5% — far short of the range of 6% to 8% typically seen for healthier banks.
“These are all signs of an institutional run on French banks,” he wrote. “If it persists, the banks would have no choice but to de-lever their balance sheets in a very drastic and disorderly fashion.”

Read The Rest

To be clear, the run on the banks and the collapse it will cause is already underway and “If it persists” the French Banks will have “no choice but to de-lever their balance sheets in a very drastic and disorderly fashion” which means forget about the plans of propping up or bailing out Greece, Ireland, Portugal, Italy and Spain.
In fact, such an event in happening in “very drastic and disorderly fashion” would trigger a Lehman style collapse wiping out any hope of those nations being able to pay off their debt.
The resulting financial turmoil drag down Germany and the entire Euro-zone resulting in sovereign debt defaults in many of those nations as well.
From there the counter-party risk turns to contagion and drags down banks in Great Britain, China and even the U.S , resulting in the greatest economic crash in the history of man kind.
The question is will officials fess of to reality or continue to pretend the patient is not sick until he reaches the point where his vitality can no longer be preserved.

Source: Collapse Of Entire Global Banking System Is Underway Signals CEO of World’s Largest Mutual Fund ©
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