Tag Archives: banks

Eyes Wide Shut as Spain’s Banking System Collapses

As Spain collapses into depression, its banks are holed below the waterline and sinking rapidly, because they are the only remaining buyers of Spain’s sovereign debt. The government, unable to provide state aid to its banks, is desperately bending over backwards to hide the true state of its financial sector.
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Europe’s Sovereign Debt Crisis Hasn’t Gone Away

It’s surprising that the banking crises facing Ireland and Portugal, and the wider European banking sector - have not been more contagious. While the risk of Ireland and Portugal defaulting soars, other Europe sovereign bond yields remained fairly flat in the third quarter, and Greece even enjoyed a rally of 140bp to 775bp. This calm is not likely to last long though, before more questions are asked of the banks which own the dodgiest euro-zone debt.
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More Evidence of German Banking Untruths

As if further evidence was needed that the German banks have been lying about the true state of their balance sheets, and that a German banking crisis is in the offing, we learn that German mortgage lender Hypo Real Estate will receive another €40 billion of state guarantees.
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The Second Wave of Europe’s Banking Crisis is Crystallizing

As the crisis in the European financial sector deepens, trading patterns are indicating a major sell-off within the next month, if the market breaks out of the flag patterns forming in the MSCI European Financials Index. After all, the ECB’s extension of its liquidity safety net for vulnerable euro zone banks – and the guarantees for troubled banks in Ireland – can only fuel suspicion about skeletons in the closet.
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Canadian Taxpayers On the Hook As Housing Cools

As a country that earns its living exporting commodities, elevated prices have so far saved Canada from the kind of credit crunch experienced south of the border. In fact, for the last two years easy money has created a housing bubble. So, as the market begins to cool there’s growing speculation there'll be a sharp correction – and one that would deepen if China’s rapid growth slows. This may be less of a concern for Canada’s banks, protected as they are by government guaranteed mortgage insurance, than its taxpayers.
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What A Wicked Game to Play: The Truth Germany Conspires to Hide

Germany’s politicians are up to their necks in fraudulently covering up the true state of their banking system. Getting serious about cleaning up their banks would mean admitting the financial crisis was not all the fault of Anglo Saxon bankers. The price that Germany and Europe as a whole pays for this disingenuousness is likely to be another full-blown banking crisis. Only this time it will be Chancellor Angela Merkel and her colleagues that end up being cast as the villains.
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