A few extra bank stories as they slide slowly into the mire.
This is a strange tale from Bank of America, St. Louis, and though it’s 3 days old it makes me wonder what the story was…IT IS APPARENTLY DISINFORMATION… so take it with a pinch of salt…. people are very busy trying to hijack the OcuppyWallStreet agenda…
Last night Mervin King, Governor of the Bank of England said.. “This is undoubtedly the biggest financial crisis the world has ever faced and it has continued now for four years.
I do not know when it will come to an end. What I do know is that in order for it come to an end we have to find a way for imbalances to unwind, for the debts to be repaid and for the countries that need to repay debt to other countries to be able to export their way out of difficulty.”
Well, exporting your way out of difficulty sounds like a great idea, but, of course, it is dependent on someone having the cash to buy. Just putting the bill on someone else’s credit card doesn’t help the systemic debt.
Nasdaq reports the non-story here.
So, now, this morning Moody’s has downgraded a load of European banks, British ones included. Our Chancellor tells us it’s because our banks are more stable…Duh!! In an amazing bit of 180 degree spin … our banks are downgraded because we have improved the system… Great stuff… more double-speak here.
Not surprisingly Moody’s supported this propoganda “Moody’s believes that the government is likely to continue to provide some level of support to systemically important financial institutions, which continue to incorporate up to three notches of uplift. However it is more likely now to allow smaller institutions to fail if they become financially troubled. The downgrades do not reflect a deterioration in the financial strength of the banking system or that of the government.”
Well, downgrading 12 UK Banks…they might as well have downgraded them all. The worlds banks are all interconnected, with the possible exception of Iceland and North Korea.
Anyway…the message going out today is…hey, we’ll just print some more MONEY, it’ll be fine….but once those nervous little brokers have had the weekend to stew on it all… Monday will be interesting…
If you are in the market just ask yourself how much you can afford to lose. Under the mattress may be best.