Posted on 09/21/2011 6:51:14 AM PDT by blam
IMF Issues Brand New Warning About The Massive Risks To The Banking System
Joe Weisenthal
Sep. 21, 2011, 9:37 AM
Released this morning by the IMF. A new statement on huge risks to the banking sector.
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* Weak growth, balance sheets and political resolve cause crisis of confidence
* Large number of countries effected by government debt risks
* Policymakers need to act to repair household, government and financial balance sheets
Financial stability risks have risen sharply in recent months, as slower economic growth, market turbulence in Europe, and the credit downgrade of the United States have weighed on the global financial system, according to new analysis by the IMF.
Financial markets have begun to question the ability of policymakers to command broad political support for needed policy actions, the IMF said in its latest Global Financial Stability Report.
We are in the middle of a crisis of confidence, which is taking its toll on both the economy and the financial system said José Viñals, Financial Counsellor and head of the IMFs Monetary and Capital Markets Department, which produced the report. Improvements in financial stability over the past three years have been partly reversed, said Viñals.
The report said balance sheetsa snapshot of the assets and liabilities held by a government, financial institution or householdare strained by mounting debt or assets that have lost value.
The Global Financial Stability Report was released the day after the IMF issued its outlooks on global growth and government debts and deficits, which show a weak and bumpy recovery from the crisis.
Global challenges
The lack of progress to repair balance sheets has raised concerns about the financial health of governments in advanced economies, banks in Europe, and households in the United States.
In Europe, concerns about government debt levels
(snip)
(Excerpt) Read more at businessinsider.com ...
Nope. This is a crisis of reality: the world-wide fiat system is s l o w l y toppling over.
Fiat promises will soon become worth the paper they are written on, and no more.
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