Posted on 02/17/2021 5:58:12 AM PST by Oldeconomybuyer
FRANKFURT - Unpaid debt from pandemic-stricken borrowers has ravaged profits at Europe’s big banks and kick-started a debate among politicians about whether they may ultimately need state help.
Reflecting on the pandemic impact, many bank executives say the worst is behind them, with Societe Generale CEO Frederic Oudea and BNP Paribas CEO Jean-Laurent Bonnafe predicting an imminent rebound.
While executives voice confidence, European officials worry the banks’ problems have barely begun.
They fear more borrowers will default when government support, including billions of euros of loan guarantees in France, Spain and elsewhere, is unwound.
Officials spelt out their concerns in a report presented to euro zone finance ministers who met on Monday, warning of “wide-scale corporate distress”.
In the document, they highlighted the extent to which banks rely on governments to help borrowers.
Were it not for government support, they estimated roughly a quarter of EU firms could have been in trouble at the end of last year and cautioned that banks’ provisions for such losses did not reflect the “underlying deterioration”.
Roughly 587 billion euros ($712 billion) of loans were under moratoria and 289 billion euros of credit had been given on the back of public guarantees, they said, from a tally late last year.
“We have to avoid a sharp rise in insolvencies,” Paolo Gentiloni, the European Union’s economy commissioner, told journalists after the ministers’ gathering.
(Excerpt) Read more at reuters.com ...
More bailouts!!!!
See tag line. It refers to the world, not just the US.
Many don’t know that in Europe there are anti lockdown riots going on in various countries, even in winter. Just wait ‘till spring.
Too big to fail.
For the record:
China is in far worse trouble than the USA/North America and Europe.
The Flooding of the Yangtze river and all tributaries began in jyly and was still in effect in mid September. The damage is incalcuable and any figures you see are certainly understated. The number of flooded autos and trucks is certainly in the thousands. The infrastructure damage to roads, bridges, railways and power lines is immense.
then there is the cropland. China built dams and lots, mimes and miles of flood control levees. Behind the levees the bottom lands became croplands. The flood was so great that to control it, the levees were porously breached. Those croplands were flooded. The are is measured in hundreds of square miles. In the north, there was simultaneously drought.
Also simultaneously, there were typhoons that hit just east of Shanghai. There was more and different flooding that resulted in extensive infrastructure and property damage.
All this was while and in Covid stricken areas.
I watched the reports daily on you tube. It was real
The net result is massive food shortage.
This is one reason I feel so blessed in rural Kentucky, where I can raise my own chickens and, if necessary, lifestock. And it is safe from urbanites. I would not want to have to survive on eggs, but we could if we had to, and still throw half of them away.
Suggestion:
Hatch some eggs and grow your own chickens. My grandfather who existed ok through the depression did just that. He kept them even in the early 50’s
Put out corn and attract deer. Eat the deer As a suburbanite, I could do that as well.
We did raise some chickens that way a couple of years ago. Frankly, now that this is more than a hobby (I’m only doing it as a protection against possible lockdown related food shortages) I probably should take that aspect more seriously. Same with the deer. We let a few folks hunt on our property. We may need to take that a bit more seriously as well.
Eating chickens is good
Killing, plucking and preparing them is not good
“...kick-started a debate among politicians about whether they may ultimately need state [BANKER’S] help.”
Seems like every war, disaster and financial problem ends up with more debt (financial enslavement) to the privately owned global bankers, begging the question; “did they also create the problems which make them wealthier and us even further enslaved?”
#weknowthetruth
Cute little baby hands
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