Banks lend to other banks who in turn lend to governments and corporations and individuals; this is how the Global Economy works. When banks stop lending to banks, it’s Game over. That day may be closer than most people would expect, actually few people expect it so it will take the world by surprise. The consequences of this endgame are being witnessed in London and Athens and will be seen worldwide on a much larger scale as in the video clip below. Don't think this is fiction; it's as certain as anything that one can predict. AUSTERITY = ANARCHY and reports such as the one below are confirmation that the game is nearing a fiery end very soon, possibly before the end of the year.
One bank in Asia has cut credit lines to major French lenders while five other banks in Asia are reviewing trades and counterparty risk as worries about the exposure of French banks to peripheral euro zone debt mounts, banking sources told Reuters on Thursday.
Rumors on Wednesday that France was to lose its AAA rating, later denied by ratings agencies, helped trigger the biggest widening in the European credit default swap index since the credit crunch in 2008.
That sudden rise in risk perception, combined with sharp share price falls in French banks, prompted some banks in Asia to speed up reviews of counterparty risk and look at whether they should cut exposure to European lenders, sources at each of the six banks in Asia said.