Two of the biggest banks in Europe about to go bankrupt?

Of course the ECB and the national governments will probably bail them out... because not doing so means the banking run of the century... and the total banking system collapse of Europe....

SocGen, Unicredit On "Brink Of Disaster"?

Over the past 48 hours we had heard pervasive rumors that at least one, maybe more, banks in Europe are on the verge of collapse. Our thought was, naturally, Dexia, which is the modern equivalent of AIG, not to mention the bank most rescued by none other than the Federal Reserve. Well, we were wrong. And if the Daily Mail is correct, the two banks about to kick the bucket are French SocGen and Italy's UniCredit. While the fact that these two banks are in trouble has not been lost on the market, which has been sending their CDS to near record highs, the speculation that they are far closer to implosion likely means that the equity value of the European banking sector is about to be decimated.

Unicredit : 40 million customers in 22 countries, worth 929 billion euro or 1.4 trillion $US...
SocGen : Worth 1.1 trillion euro or 1.54 trillion $US...

Those two banks are bigger than any Lehman Brothers or AIG...

France and Germany interest on their bonds is going up too...

You add in the Credit Default Swaps all connected to this... and you got a nice party... an economic Armageddon party.... they have to bail them out, at any cost or the whole game is over.

Everything bad is lining up this week... the race to the bottom... who will crash first... the US or Europe... for now it seems like Europe will go under way before the US.

Update : It seems the markets aren't believing it... no selling so far... and the CDS of both banks are not moving much...

reply to post by Vitchilo


I got my bets on the US! We gotta crash first, our "leaders" are complete morons & it's their fault we're in this mess! So it's only right we crash & burn first! USA! USA! USA!

That or it's all part of some NWO plan, in which case it's a fixed game with a set outcome

Well mate our markets copped a beating today,it will be interesting to see how it opens over there.

reply to post by Vitchilo


It's simply impossible to keep bailing them out and that "nightmare bubble" derivatives is still to burst...

The bankers and investors have "Gambled" with our money and lost..

What was always going to happen is now starting.
We were a badly holed ship but instead of closing the bulk heads, flushing the debt out of the flooded compartments of Greek, Irish, Spanish, German, French and Italian banking, and then repairing the holes, our leaders, those living it up on the upper decks, decided that the loss of those valuable compartments would curtail their party and opted instead to pump the ingress of debts from the banks to other larger rooms. The section of the ship from which we pumped seemed to rise fractionally, or at least the water level, it was claimed, was going down, and the ship, we were assured could deal with the extra cargo now being 'safely' stored for later disposal in two private rooms marked ECB and EFSF.

Sadly the holes, unfixed, are larger than was admitted, the flood is still coming in, the pumps are at capacity and the new store rooms, the ECB and EFSF, are filling up rapidly. In fact the EFSF is now flooded.

According to the Bloomberg financial channel, the sole reason the Euro markets aren't plummetting is because the ECB is buying bonds hand over fist this morning. Market manipulation is always so fun, huh?

reply to post by Hithe Merinos


Starred.

Possibly the best financial metaphor I have ever come across. Bravo!

why dont they just make up more fake money to pay off there det. problem solved right...i mean just print a bunch of money and dont tell any one so the country will not have to devalue there currency.

i really wounder who will go bankrupt first, and what would be the down side of the results.

reply to post by burdman30ott6


When you can't pay your bills, print more money!!!

reply to post by Rockpuck

A nation has to borrow to print money. The lender is the Central Reserve Bank of that country. The Reserve Banks are part of a privately-held world-wide banking system.

Usually borrowing is done to finance new programs or expansion of old ones, not to pay off debt. When you print more money you go MORE into debt! Most of these programs were ill-advised (or sabotaged on purpose) as they didn't result in revenues sufficient to pay for their cost. Obviously, the banks have learned to do business a lot better than governments have! But then, banks don't have to take care of people or protect our human rights, and governments do.

U.S. Fed Reserve has been printing monopoly money since we left the gold standard behind to pull us out of the Great Depression of 1929. I've been telling people for years that paper money isnt worth the toilet paper its printed on. The "Dollar Notes" we have are supposed to be tickets you could take and exchange for the amount of Gold or Silver they were worth. I'd like to see you try to take your money to the Fed Reserve and exchange those paper monies for the gold and silver they were allegedly worth, they will laugh you out of town and sneer at your bills.

When the world market crashes, gold and silver will be the new currency, and if you have none then you starve to death. Gold,silver,precious jewels like diamonds, rubies and sapphires will be the ONLY thing you will be able to trade for ANYTHING unless we return to a barter and trade style economy, which wont happen because no one practices the old types of trades anymore. The very types of trade skills that could save us we have disdained because everyone in america wants to be a doctor,lawyer,politician,entrapanuer,banker etc. No one farms as a means to live and trade, blacksmithing has gone the way of the dinosaurs. Who is going to work in the factories that makes our food,cars,medical supplies and daily living commodities when paper money is discovered to truly be worthless? No one.

The greatest Con job in America was the day that our government tricked us into believing that paper money had any true worth and they outlawed the owning of gold in the Great Depression of 1929.

Weird... the Daily Mail article quoted in the link has mysteriously disappeared...

Search on Google and it's there, click the links and it's gone...