Countdown to the Eurozone Bank Run

Friday, September 23, 2011

A comatose interbank market and corporate and fund money fleeing Eurozone banks in droves have rung in the countdown to the Eurozone bank run that could become reality as early as next Monday.
The free fall in all major markets and commodities was only negatively outperformed by European banks whose shares fell to new 2011 lows.
Gossip about major institutions like Lloyds of London withdrawing all deposits from Eurozone banks and countless stories in German media about corporations that follow suit are the first indicators about a bank run that may come as soon as Monday when one major Eurozone bank may have to announce its insolvency.
A cascade of downgrades is only more fuel to the market fornication as we have never seen it before. As we are closer to the Endsieg, banks are resorting to a dog-eat-dog strategy, scrambling to save their own skin in a world where the only providers of liquidity are central banks letting their money printing presses spin 24/7.
Mounting rumors expect the announcement of a major bank closing its doors as soon as Monday and market speculation focuses on Unicredit and Societe Generale.
Unicredit shares dropping like a stone
The first bank to announce insolvency will not be the last one. It will be only the first domino piece that will destabilize the rest of the banking sector because interwovenness has reached the point where everybody owes everybody else.

Being asked about the ultimate safe haven I still have only one answer. Precious metals bullion are the only asset that is not the liability of someone else.
Never mind that silver FUTURES dropped 9% on Thursday and gold breached the 50-day moving average. As long as market participants with unlimited credit from the Federal Reserve can sell x,xxx tons of paper gold or paper silver within seconds in regular gold/silver slam scams the ride will be stormy but ultimately the holders of the physical will prevail.

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3 comments

Anonymous said...

Who believes this? http://www.google.com/search?q=2012

25 September, 2011 03:06
Anonymous said...

Thx for this great information that you are sharing with us!!!

25 September, 2011 13:22
Buy Gold Coins said...

This kind of market scenario is very discouraging to businessmen. I'm just glad that our leaders are doing the best they can to prevent total meltdown. I think, buying gold is one of the best alternative investment around.

03 April, 2012 00:06

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