Day Of Reckoning: The Collapse Of The Too Big To Fail Banks In Europe Is Here

Economic Collapse ^ | 8 Feb 16 | Michael Snyder

[SkyPilot]

There is so much chaos going on that I don't even know where to start. For a very long time I have been warning my readers that a major banking collapse was coming to Europe, and now it is finally unfolding. Let's start with Deutsche Bank. The stock of the most important bank in the "strongest economy in Europe" plunged another 8 percent on Monday, and it is now hovering just above the all-time record low that was set during the last financial crisis. Overall, the stock price is now down a staggering 36 percent since 2016 began, and Deutsche Bank credit default swaps are going parabolic. Of course my readers were alerted to major problems at Deutsche Bank all the way back in September, and now the endgame is playing out. In addition to Deutsche Bank, the list of other "too big to fail" banks in Europe that appear to be in very serious trouble includes Commerzbank, Credit Suisse, HSBC and BNP Paribas. Just about every major bank in Italy could fall on that list as well, and Greek bank stocks lost close to a quarter of their value on Monday alone. Financial Armageddon has come to Europe, and the entire planet is going to feel the pain.

The collapse of the banks in Europe is dragging down stock prices all over the continent. At this point, more than one-fifth of all stock market wealth in Europe has already been wiped out since the middle of last year. That means that we only have four-fifths left. The following comes from USA Today...

The MSCI Europe index is now down 20.5% from its highest point over the past 12 months, says S&P Global Market Intelligence, placing it in the 20% decline that unofficially defines a bear market.

[ground_fog]

Trump sued Deutche bank for 3 billion and blamed them for the financial crisis..which they did cause..they ended up settling

[Patriot Babe]

And those Central Bankers will one day get their due karma that is if the people don’t get to them first.

[amorphous]

Yep, I advise keeping some ready cash available along with at least a month's worth of grub and a full tank of gas. If the market and banks collapse, it will take several days/weeks to put emergency measures in place, then a few days for business to get back to speed and inventory in - unless rioting damages businesses - then it will take months.

[Robert DeLong]

You may have no pity, but that won't stop you from feeling the pain it is going to cause over the entire globe. In fact it may just be the precursor before it finally hits here.

We do not exist in a vacuum independent of what happens there. Global finances like everything else have all become intertwined and dependent upon one another.

What happens there puts severe strains upon our system and when those strains become too much our system starts its collapse.

Some are calling this the final bubble, and the most painful bubble yet to burst. There will ne no country left unscathed, and I think many lives will be lost in the process as well. It will not be a pretty sight or experience to endure if the analysts who have been warning about this are correct.

[laplata]

Wise thinking.

The scariest part of all this is how the people are going to react. Common Sense has been replaced by Political Correctness to a great extent and that is a disaster in waiting.

[SkyPilot]

Won't say who I work for, but I work in the Banking Sector (High Wealth) and our stock price has dropped just over $21 recently. We had a near record Q4/2015. The January equity plunge has so scared/concerned our Senior Management that the announcement went out last Thursday that all salaries are frozen until at least October, we have a hiring freeze (big deal, we've had that for five+ years now..) and we're cutting consultants left and right. Layoff's are coming and non-mission critical / non regulatory requirement projects are being slashed. It's BAD. Whatever's coming is a big bowl of BAD. We didn't get these kinds of cuts in 2008/2009. Frankly, it's obvious that our Senior Management is starting to panic, and that's making me nervous.

Thanks for the inside look and info. My prayers to you that you will ride this out OK.

[SkyPilot]

See post #21.

[fella]

The endless inflation of Keynesian economics may need a Hayek maneuver to save it.

[SkyPilot]

We may get to see what banking failures look like without bailouts. We’ll be able to compare the damage.

Maybe. I remember when Congress initially balked at the bailouts in 2008. The markets dropped like a stone in protest, and the media went into overdrive blaming their usual suspects. But there is no ammunition left now for bailouts. The markets could lose a lot. A LOT.

[DoughtyOne]

I agree.

I think we escaped a lot of the downside associated with a financial collapse the last time.

Because of this some folks are able to complain about the bailout.

IMO < there would have been far more to complain about, if major banks had been allowed to fail.

I don’t think our government was very smart about some of the ways it helped. I think abuses took place because of this.

Heck, the whole thing should have been avoided, and we just kept whistling past the graveyard.

[SkyPilot]

They always do.

[txnativegop]

So there will be pain, so what?

We’re Americans, we put our heads down and do what we need to do to get through it, not b!tch about it.

And trust me, I will be among the first to suffer the effects that you are afraid of.

I live off of $24k a year, any questions?

[amorphous]

Yes it is. When people’s normalcy bias gets busted, many will go into shock followed by panic. It’ll be a good time to stay inside your home, watching things unfold on TV, instead of having to compete for that last bit of food at your local grocery.

[SkyPilot]

[gunsequalfreedom]

Now we know why so many bankers have been sky-diving from tall buildings and driving into ditches.

I'm thinking these are not good financial indicators...

"A New York City investment banker is dead after allegedly jumping from his apartment building, marking the 12th highly publicized banking suicide this year.

The latest suicide occurred on March 12, when 28-year-old Kenneth Bellando was found on the sidewalk outside of his six-story Manhattan apartment building. This suicide came just one day after another investment banker in New York City took his life by jumping in front of a moving train."

https://www.intellihub.com/another-banker-jumps-building-nyc-12th-banker-suicide-year/

[brianr10]

Tonight the EBT lines were down at the local Wegmans!

[familyop]

A nation cannot sustain its economy for long by being a net importer of manufactured goods and spending too much on government.

[Ruger1099]

So the economy crashes, you can’t pay your bills, you can’t get cash, food or gas, why go to work? Now what happens?

[Lazamataz]

Great. Just what I needed to hear. Heading into the biggest financial crisis in my lifetime with an iffy job, if I even have one.

Just effing great.

[laplata]

When people’s normalcy bias gets busted, many will go into shock followed by panic.
—

Great point.