Home / Banking / Meltdown 2 Is Coming
Print Friendly and PDF

Meltdown 2 Is Coming

Written by Gary North on December 13, 2011

We remember the meltdown in late 2008. Get ready for another one, says MarketWatch’s David Weidner.

First it will hit in Europe. Then here. There is a connection. Americans are “being held hostage by the Angela Merkels, Nicolas Sarkozys, Mario Draghis and Mario Montis.”

Moreover, it’s not just our wealth, it’s our ability to attain credit and earn interest on our assets. Europe has long put a squeeze on the world’s financial markets. Now it’s putting our personal finances at risk.

Simply put, Europe’s banks look to be on the brink of collapse.

Collapse is a frightening word. We do not see it often in the Establishment financial media.Weidner goes on.

Don’t take my word for it. The Bank for International Settlements issued its quarterly report on Monday. And the outlook is more than just gloomy.

“The intensification of the euro-area sovereign-debt crisis went hand in hand with banking-sector weakness,” BIS researchers observed. “While bank funding problems had manifested themselves throughout the year, policy makers and market participants increasingly turned their attention to issues of bank solvency.”

And “participants” did not like what they found. Standard & Poor’s downgraded two French banks, four Spanish banks, seven Italian banks and three Greek banks.

Moody’s Investors Service was more aggressive, slashing the previously “strong” financial systems. It downgraded three German banks, three British banks, and two U.S. banks.

If it had not been for government bailouts, the BIS says, there would have been more downgrades. The ratings would be lower. Germany’s would be BBB, not A.  So would U.S. banks.

BIS points out that part of the problem is bank debt, nearly $2 trillion needs to be refinanced before 2014. Some 13% is owed to governments from the last round of bailouts. European central banks have loaned 600 billion euro to banks as inter-bank lending has dried up.

But what has this got to do with Americans? First, The need for more bailouts in Europe. U.S. banks will get in trouble. Morgan Stanley is down 43% this year. MF Global is dead. Belgium’s Dexia was saved only by direct intervention by government.

These failures have been disruptive to the world’s financial system, but it will be nothing compared with what would happen if a bank the size of, say, Italy’s UniCredit Spa (MCI:IT:UCG)  or France’s BNP Paribas (EPA:FR:BNP)  should require drastic action.

A squeeze is now in force. Margin accounts for stocks and bonds have been tightened.

That’s what’s happening now, but it could get worse very fast. The markets on Monday reacted poorly to another summit of European leaders aiming to fix the crisis. If confidence isn’t restored, banks will soon hit a cash crunch.

What happens next would be a panic. Some banks may not survive. And if you think it will stay contained in Europe, BIS has news for you: we live in an era of “global spillovers,” the bank said.

A European crisis could trigger a global recession, he says. U.S. banks will be stung, as they were in 2008. U.S. banks are tied to Europe. ” If it sounds familiar, that’s because it was the same toxic mix that gave us American International Group Inc. (NYSE:AIG) , Lehman Brothers, and ultimately at $1.2 trillion in government guarantees to the market.”

For the little guy that meant lost jobs, lost credit, foreclosures and a world of economic hurt. That’s why Europe is nearer than you might think. It doesn’t get any closer to home than losing your home.

Continue Reading on www.marketwatch.com

Print Friendly and PDF

Posting Policy:
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

8 thoughts on “Meltdown 2 Is Coming

  1. Basic start of problem is $13 Trillion removed from the west by islamic sovereign banks. In an effort to cover shortage of true wealth governments started printing money. Each dollar printed dilutes everyones savings. This is a deliberate plan of islam to bring down the west to install sharia. With their unlimited wealth they are buying up assets and corrupting officals at every level.

  2. Keith Mathison says:

    Just in Southwest Washington State alone there are about 144 distressed (REO Bank sales and Short Sales) homes selling per month and this has been going on for years! About +-40% of sales are distressed; a good market would have around +- 3% distressed. Distressed property sales were falling a bit but now trending back up. That is very close to home!

  3. TheThinMan says:

    When everyone – including governments are living on borrowed money – with dim inflated future – what do you expect. Socialism always crashes when the governments run out of money and they and the people have squandered their wealth.

  4. Luke 10:18And he said unto them, I beheld Satan as lightning fall from heaven.
    In ancient Hebrew the word for lightning is barack, the word for heaven or the
    heights is bama and to connect the words either an “a” or an “o” is used.

    2 Thessalonians 2:3 (King James Version)
    3Let no man deceive you by any means: for that day shall not come, except there
    come a falling away first, and that man of sin be revealed, the son of perdition;

    Political Correctness a term first seen in Mao’s Little Red Book, a communist engendered abomination that is instituting censorship little by little.

    “If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter.”- George Washington

    Carl Marx, once wrote that, the goal of the Communists was to quote,. “enter into men’s minds and cast God down from his throne.”

    Matthew 12:31Wherefore I say unto you, All manner of sin and blasphemy shall be forgiven unto men: but the blasphemy against the Holy Ghost shall not be forgiven unto men.


    In ancient Babylon their economy was based on usury.
    “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest. Exodus 22:25
    Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him. Ezekiel 18:13
    Usury is unlawful; expressly prohibited by GOD!
     Article 1 Section 8 of the U.S. Constitution clearly states that only the Congress can print and coin money! 

    The Federal Reserve Act of 1913 was slipped thru congress during the Christmas break with the majority of it’s members absent. 

    The Federal Reserve is self serving and privately owned in violation to the Constitution, charging interest on illegally printed money. Money printed from nothing!
    In America On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. Five months later A UNITED STATES PRESIDENT, PRESIDENT JOHN F. KENNEDY was MURDERED BY COMMUNIST!
    “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest. Exodus 22:25
    Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him. Ezekiel 18:13
    Usury is unlawful; expressly prohibited by GOD!
    In ancient Babylon their priest sacrificed babies to their gods baal, and molech.  
    In America the communist under their socialist programs have sacrificed over 50 million American babies to their god satan!
    Leviticus 20:2-5
    2Again, thou shalt say to the children of Israel , Whosoever he be of the children of Israel , or of the strangers that sojourn in Israel , that giveth any of his seed unto Molech; he shall surely be put to death: the people of the land shall stone him with stones.
    3And I will set my face against that man, and will cut him off from among his people; because he hath given of his seed unto Molech, to defile my sanctuary, and to profane my holy name.
    4And if the people of the land do any ways hide their eyes from the man, when he giveth of his seed unto Molech, and kill him not:
    5Then I will set my face against that man, and against his family, and will cut him off, and all that go a whoring after him, to commit whoredom with Molech, from among their people.
    Luke 22:35-36 Then Jesus asked them, “When I sent you without purse, bag or sandals, did you lack anything?” “Nothing,” they answered. 36 He said to them, “But now if you have a purse, take it, and also a bag; and if you don’t have a sword, sell your cloak and buy one.
    Jeremiah 50:16Cut off the sower from Babylon, and him that handleth the SICKLE in the time of harvest: for fear of the oppressing sword they shall turn every one to his people, and they shall flee every one to his own land.
    Jeremiah 50:23How is the HAMMER OF THE WHOLE EARTH CUT ASUNDER AND BROKEN! how is Babylon become a desolation among the nations!
    Jeremiah 50:14 “ Put yourselves in array against Babylon all around, All you who bend the bow; Shoot at her, spare no arrows, For she has sinned against the LORD.

    All nations compassed me about: but in the name of the LORD will I destroy them. Psalm 118:10


    “The thing that separates the American Christian from every other person on earth is the fact that he would rather die on his feet, than live on his knees!”. George Washington



  5. 23 bank credit downgrades sounds serious. OK, meltdown is to be expected. What's your point? Are we to prepare in some way? Hell no. We just sit here and life goes on.

    No more bailouts from the US. Let Europe stew in her own juice. So what if Greece no longer allows her people to retire on public money at the age of 50? Tough titty.

  6. Life is hard all over. Let Europe stew in her own juice. No more bailouts from the US. Let the US banks that have foolishly put too many European eggs in their basket go down or if possible mend their practices to get back on track. No more bank bailouts in the US.

  7. Patrioticnut says:

    This author has the ability to state the obvious. Anyone who has been paying a little attention to all of this garbage knows what is coming. Let me be the first to say thank you to the globalist aholes that helped us get so deeply involved. The real kicker here is that there are still those globalist idiots pushing for deeper involvement of our economy with the rest of the world.When the euro zone finally does collapse so will we and it won't be pretty. The question is, will we fight our way back or just give up?

  8. Help Make The Corrections To The Government You Want To See Corrected!
    Promoting Constitutional-Conservatism and the reduction of big government!
    Empowering personal initiative and self-reliance through individual enterprise!
    Reviving the entrepreneurial spirit and pursuit of American Exceptionalism!
    Join me@ http://www.wakeupamerica.com/constitutionalbeliev… just as thousands of other people have joined WAKE UP AMERICA! I believe thousands more, hundreds of thousands, if not millions more will help take back Our Republic with Wake Up America! So The POTENTIAL IS HUGE!