«(...) last month’s approval of a new loan to Athens of €5.8 billion is a pee in the Pacific compared to the shambolic situation there. Non-performing bank loans in Greece now total €88 billion. These loans exceed the total funds set aside for the recapitalization of the Greek banks, €80.5bn. People contacted in the US and Europe over the last week provided a median capital shortfall estimate in the European banking system (that includes the UK by the way, a not inconsiderable part of it) of around €3 to 5.5 trillion. US investment veteran John Embry offered an uncannily similar figure at the weekend – $4trillion. (...) Portugal is desperately close to default. Its deficit has narrowed considerably, but it’s way behind on the debt payments. The debt to GDP for this year is forecast to be 123%. More to the point, the country is almost out of cash. If Portugal goes, Spain goes. (...) One suspects that all this maraca-rattling about Gibralter is, as with Argentina and the Falklands, a handy diversion. Spanish bankruptcies are up 45%. Its economy contracted again in Q2, unemployment remains at 26%, and debt to GDP is running at 92%….up from 85% last year. * Greek debt will reach 175% of GDP by the end of this year, according to data in the Economist. Two years ago the idea was for it to be 118% by now. Just a fraction out there, Ms Lagarde. Situation normal. * The disaster that still dare not be mentioned very much in the media is France. France is very big, right? What do you think its debt to GDP ratio is – 85%? 115%. Try 174%. And its economy is contracting….just at the time Francois Hollande decides to, um, put up personal and corporate taxes. Novel, you have to hand that to the bloke. (...)» hat4uk.wordpress/2013/08/14/global-looting-the-numbers-that-all-point-to-imminent-bank-bailins/#comments
Posted on: Wed, 14 Aug 2013 12:59:17 +0000
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