CONCLUSION To the following report: The Global Economy is DEAD and will soon be buried. Will you be buried along with it?
UK Telegraph: Market crash 'could hit within weeks', warn bankers
A more severe crash than the one triggered by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets.
Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group's implosion nearly three years ago.
Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £10m of the state-backed lender's bonds against default is now £343,540.
The cost of insuring RBS bonds is now higher than before the taxpayer was forced to step in and rescue the bank in October 2008, and shows the recent dramatic downturn in sentiment among credit investors towards banks.
"The problem is a shortage of liquidity – that is what is causing the problems with the banks. It feels exactly as it felt in 2008," said one senior London-based bank executive.
"I think we are heading for a market shock in September or October that will match anything we have ever seen before," said a senior credit banker at a major European bank.
“The problem is a shortage of liquidity” / If, after $29 Trillion, give or take a trillion have been thrown at Too Big To Fail banks by the US Federal Reserve and other Central Banks around the world there is still a shortage of liquidity, then we have a problem that ain’t never gonna be fixed!!!
Does anyone still remember when the Crisis was measured in billions, as in $700 billion that Hank Paulson extorted out of Congress that was supposed to save the economy? And now some three years later, hardly anyone calculates even in trillions, I see figures in the quadrillions being bandied about, is this all too surreal or is it all too real? In any case the present Economy is dead; anyone who thinks otherwise is tragically deluded!