I have written here before about the Banking Crysis.
After Italy saved most of its bank contrary to what they said they would do before, nothing is solved but they are plugging the holes with their fingers. Now BNP Paribas with its "transform to grow" plan is cutting jobs massively. Credit Suisse also has problems. Its just everywhere and i admit i dont have a complete overview yet. A few things that are causing problems are: - negative or low rates - technology disintermediating banks and favouring new cheaper competitors - bad loans lingering in the books - lack of growth in most of Europe - more and more regulation and stricter reserve requirements - lack of trust in banks and low rates causing people to hoard cash - Real Estate boom phase 2 coming to an end, so people borrow less. - Banks are just too big to manage, too crusty and old and full of bad culture and young people prefer "green" banks "social" banks "no profit" banks "micro loans" "commonity loans" and young people also arent really buying houses anymore as they are SO mobile that they often prefer to rent, or in my case i dont even rent! This will be the great fiesta and if they are smart, people will get themselves some physical stock certificates of non-bank-triple A-companies, to be unaffected when their European Banks go bust and the European Banking System gets freezed and everyone panics like its 1931 (last European Banking Crysis and Sovereign Debt Default) all over again.... i wonder who gets elected two years after that this time....? https://blog.tagesanzeiger.ch/nevermindthemarkets/index.php/13616/lehren-aus-der-deutschen-krise-von-1931/ Okay, we all know climate is changing, it always does, farmers know, my grandmother was a farmers daughter she knows.
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AuthorPascal |