The BIG Question Is Who's Next?
March 30th 2013 18:13
I'm grateful to my loyal readers, who come each day in the hundreds to read something new about business. For many months we have concentrated on Gold and Silver; where it's going, why should it move higher, how it protects one's assets. With this month's news about the theft of deposits in Cyprus, I think it is even more imperative that one should protect one's family and assets.
The BIG question is who's next?
Martin D. Weiss, Ph.D. writes this am, "Are Cyprus banks canaries in the coal mine?" He wrote, "The fact is that, back in April 2012, Weiss Ratings issued D- grades to both the Bank of Cyprus and Cyprus Popular Bank, two of the banks at the center of the latest financial maelstrom. And we downgraded them even further — to E- (meaning on the very brink of failure) — in December 2012.
"IF Cyprus banks were the only ones buried in mountains of bad debts, the only ones skating on thin ice with virtually zero capital, or the only ones waiting in line for their next infusion of rescue money … then … maybe, the damage to depositor confidence might be minimized.
But that’s absolutely not the case! Hundreds of endangered banks around the world have fallen into similar traps."
In the on-the-brink category are, with E- ratings are:
Royal Bank of Scotland with $2.2 trillion in assets,
Crédit Agricole (France) with $2.4 trillion, and
Not far behind, with E ratings (still very close to the brink) are
Société Générale (France) and
UniCredit S.p.A. (Italy)
Weiss continues,
1. The European banking system is a forest of dry timber that could burst into flames with the slightest spark.
2. No matter what defensive measures the European authorities can come up with, the euro is bound to remain under tremendous downward pressure.
3. And no matter where you do your banking, make sure your institution is among the safest.
2. No matter what defensive measures the European authorities can come up with, the euro is bound to remain under tremendous downward pressure.
3. And no matter where you do your banking, make sure your institution is among the safest.
I might point out that it doesn't matter which institution is the safest anymore, when it comes to the safety of your deposits, there is no safety!
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