Absolutely nothing was done towards preventing any more “too big to fail” banking crashes. If anything, the finance system is in much worse shape now than it was in 2007, relative to what would happen if just one of the big boys collapses.
Actually, you won’t need to take my word for it-you’ll see it played out for yourself, and it will be very soon.
Let’s take a quick look at this Telegraph article, and then I’ll tell you what I believe is about to happen.
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.
They aren’t bullshitting. I think most people in the US are probably aware that BooFooA is slashing people left and right, but BooFooA is only part of the story; in Europe, banks have been slashing staff to the tune of tens of thousands.
What is about to come is going to permanently alter the landscape. The Government isn’t going to be able to bail anybody out this time, thanks to Rushpubliscum/Klanbagger games over the deficit and debt. Not that Bushack HW Obama wouldn’t help them out if he could; Bushack has been without peer in his friendship with the banksters. As a matter of fact, Bushack has run interference for his bankster buddies each and every time someone has tried to get them to answer for their screwing of mortgage holders. Bushack has also been hyper-eager to water down any provisons regarding reserve liquidity, or limitations on bank sizes, or any limitations on the kind of game playing they engaged in with things like bundling. The only group of people that Bushack HW Obama has consistently listened to are, in fact, the big guys on Wall Street.
As I said earlier, it won’t matter this time. And as I’ve been saying for awhile now, the next crash will be the last one. The Plutocracy is ripe for a collapse, and this ought to just about do it. People who have now suffered through 4 years of a de facto Depression aren’t going to be interested in any “calm down” messages; they’ve heard all that before, and they’ve been told that things would be worked through, and they’ve seen for themselves that it’s all bullshit. The coming collapse of the financials, coupled with the soon-to-be runaway inflation that is going to result from the Fed’s QE policy, is going to mark the kind of change you can believe, though not necessarily believe IN.
I keep saying we won’t make it to a 2016 election cycle. This has got me to wondering if we’re even going to make it to 2012.