Eurozone banking system on the edge of collapse

Eurozone banking system on the edge of collapse

The eurozone banking system is on the edge of collapse as major lenders begin to run out of the assets they need to keep vital funding lines open.

Senior analysts and traders warned of impending bank failures as a summit intended to solve the European crisis failed to deliver a solution that eased concerns over bank funding.

The European Central Bank admitted it had held meetings about providing emergency funding to the region's struggling banks, however City figures said a "collateral crunch" was looming.

"If anyone thinks things are getting better then they simply don't understand how severe the problems are. I think a major bank could fail within weeks," said one London-based executive at a major global bank.

Many banks, including some French, Italian and Spanish lenders, have already run out of many of the acceptable forms of collateral such as US Treasuries and other liquid securities used to finance short-term loans and have been forced to resort to lending out their gold reserves to maintain access to dollar funding.

"The system is creaking. There is a large amount of stress," said Anthony Peters, a strategist at Swissinvest, pointing to soaring interbank lending rates.

Twas the night before the EU deal , when all through the zone,
Not a creature was stirring, not even a bank loan,
The savings accounts were hung by the banks with great care,
In hopes that St ECB soon would be there.

Investors were nestled all snug in their beds,
While visions of euro-bonds danced in their heads.
And Merkozy in joint chief, and the rest in deep crap,
We just settled our brains to watch the huge banks collapse.

Its all the UK's fault apparently.

Meanwhile back in reality, the paper gold market may be about to get revealed as the sham many have long claimed it to be.

www.zerohedge.com...

I haven't been so moved by a poem in many years. Can't star a post more than once but there's only one on my christmas tree too and it keeps me as merry as your post just made me.

Excellent poem, thank you for my smile before bedtime!
On a serious note...thanks for the heads up.
Rainbows
Jane

reply to post by surrealist

... have been forced to resort to lending out their gold reserves to maintain access to dollar funding.

It sounds more like the scam is working rather than the system creaking. What happened to China's gold when it was borrowed by America? It disappeared. Maybe Nibru did need it to sustain it's atmosphere? In simpler terms it is in the dragons lair somewhere.

Money these days is just numbers in a computer, the thought that these numbers can run out is silly. Where the problem is in how they are divided and adding up. Humans maybe at the top of the food chain that we know about, but 9/11 and other events just demonstrate that we are still animals living in a jungle. While the concepts of morality do enhance the human capability over other species, when this is missing it does leave deception and savagery to guide the way. Things will always remain on the edge of collapse while reconciliation and negotiation are overtaken by the addiction to power and a war on everything, just look at the recent history of Cambodia.