'Markets Are Facing A Rerun Of The Great Panic Of 2008': Head Of World Bank Warns Europe Is Heading
For 'Danger Zone' On Bleakest Day For Global Economy This Year | Mail Online
The head of the World Bank yesterday warned that financial markets face a rerun of the Great Panic of 2008.
On the bleakest day for the global economy this year, Robert Zoellick said crisis-torn Europe was heading for
the ‘danger zone’. Mr Zoellick, who stands down at the end of the month after five years in charge of the watchdog,
said it was ‘far from clear that eurozone leaders have steeled themselves’ for the looming catastrophe amid fears
of a Greek exit from the single currency and meltdown in Spain. The flow of money into so-called ‘safe havens’
such as UK, German and US government debt turned into a stampede yesterday.
This Summer An 'Eerie Echo' Of Pre-Lehman: Zoellick
Banks are under stress and depositors have begun to “jog,” Zoellick wrote in an editorial in the Financial Times on
Thursday. “The European Central Bank, like the U.S. Federal Reserve in 2008, has sought to reassure markets by
providing generous liquidity, but collateral quality is declining as the better pickings on bank balance sheets are
used up,” he added.
Egan-Jones Cuts Italy To B-Plus As Economy Stumbles
Ratings agency Egan-Jones on Friday downgraded Italy's sovereign rating to B-plus from BB, noting the country's
limping economy and the chance its banks could need more help.
"Italy is in miserable shape," Egan-Jones said in a statement.
"Italy's independent ability to support its banks is questionable given the country's weak condition," the agency added.
"The End Game: 2012 And 2013 Will Usher In The End" - The Scariest Presentation Ever? | ZeroHedge
■ We don’t know exactly what is to come, but we can all join the very few dots from where we are now,
to the collapse of the first major bank…
■ With very limited room for government bailouts, we can very easily join the next dots from the first bank
closure to the collapse of the whole European banking system, and then to the bankruptcy of the governments
■ There are almost no brakes in the system to stop this, and almost no one realises the seriousness of the situation.
■ The problem is not Government debt per se. The real problem is that the $70 trillion in G10 debt is the collateral
for $700 trillion in derivatives…
■ Yes, that equates to 1200% of Global GDP and it rests on very, very weak foundations
■ From an EU crisis, we only have to join one dot for a UK crisis of equal magnitude.
■ And then do you think Japan and China would not be next?
■ And then do you think the US would survive unscathed?
■ That is the end of the fractional reserve banking system and of fiat money.
■ It is the big RESET.