Posted on 08/30/2016 7:47:57 AM PDT by Lorianne
The first half of 2016 has been a roller-coaster for financial markets. A combination of uncertainties surrounding the U.K.'s vote to leave the European Union and weaker-than-expected corporate earnings results across the region means a tough second half looms.
European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum's results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.
The current uncertainty over when the U.K. will start the process of quitting the EU has banks on tenterhooks. But a source told CNBC that banks are "preparing for an economic nuclear winter situation."
Speaking on the condition of anonymity due to the sensitive nature of the topic, a source from a major investment bank told CNBC that financial services firms have put together a strategy in place that takes into account the worst-case scenario that could happen by the end of this year.
"This could mean triggering Article 50, referendum in other European nations leading to a break-up of the euro or sterling hitting below $1.20 or lower. The banks are ready for anything now," the source said.
The source further explained that the challenge in 2016 is nothing compared to when the Lehman Brothers collapsed in 2008 and the banking sector is this time a lot more resilient. "Markets hate uncertainty and the events this year have unfortunately created a lot of mystery around what is going to happen next."
(Excerpt) Read more at cnbc.com ...
"Sensitive" how, exactly?
Every three days there’s a prediction of a massive financial catastrophe, sure, one day somebody will be right, but there were 100,000 that were wrong. Yawn ...
No it won’t. This inter-connectivity stuff is nonsense, let China collapse, who cares ..
Hope it’s a clean debt bomb.
Yep... sky is falling.... Get my tin foil hat....
Man, I loath economic doomsayers; (actually doomsayers of any stripe, for whom the future is always worse than the present and the present always worse than the past).
That said, I am very worried about what is going to happen in the shorter-term. I think we are somewhat safe from a massive sell-off in the markets, and safe from a massive collapse before the elections. In order to try to help Hillary and the democrats there will be a concerted effort to try to ‘shore up’ the numbers and keep things going before the election. If Trump wins, they will let it all fall, and attempt to blame him. So, from my perspective, we all have a few months to sort out what the next investment/financial move should be.
Bush might have had a little to do with but Obama is loading the cart with anvils and gap heading toward the nearest cliff with a smile and a smirk on his face as daddy Soros applauds.
They’re about to dip into all of us “Money Hoarders” accounts - just like Cyprus.
Lately, people are like dogs before an eartquake.
I find one line from Bill Bonnder kinda funny. He predicted all sorts of stuff accurately over the last several decades. But he predicted a terrible meltdown lately that never happened. He’s adamant that it will but confesses he grossly underestimated “their” ability to continue to kick the can down a neverending road. And he, almost embarrassed, says the end of the road IS coming, and it’s coming soon. I think “they” will put it off as long as possible, but it will eventually be out of “their” hands.
He has interesting comments about what almost happened in the spring of 2008. I even started a post about it at the time. Our leaders had a “closed door” session and some appeared to be “scared sh**less” on exiting the meeting. It turns out that two of the attendees had been quoted on record telling their wives to get as much cash as they possibly can get their hands on.
And if you remember, that is when QE was started. QE has run its course and it will be interesting how the next attempt to “kick the can” works out.
But this simply can not last. And as he points out, when it does happen, it will reach international crisis proportions in a couple of HOURS. The key is that most of our economy is based not on money, but on credit. We started this death spiral in the 1950’s.
https://www.youtube.com/watch?v=6PqFYMZpBxw
I don’t know—China is a massive importer of goods from outside the country in recent years. If China’s economy collapses, it will take the entire planet’s economic engine with it.
No it won’t. This inter-connectivity stuff is nonsense, let China collapse, who cares ..
Bush might have had a little to do with it but Obama is loading the cart with anvils and heading toward the nearest cliff with a smile and a smirk on his face as daddy Soros applauds.
They’re about to dip into all of us “Money Hoarders” accounts - just like Cyprus.
Well then there’s always the Roth IRA’s and 401k’s - like Argentina then.
IMHO there isn’t anywhere to put money where it’s “safe” from their greedy paws.
I’ve been aware of impending world financial collapse for the last 35 years.
Will it? yes.
Tomorrow? probably not.
The lesson is: live self-sufficient, such that a complete social meltdown will have little personal impact.
Oft told: when the “Y2K bug” was looming, I explained it to my father, who understood the problem & consequences well. His reaction was “ok, I’ll throw another log on the fire and go back to my book.” Despite living a solidly middle-class comfortable life, he’s ready for TEOTWAWKI and _lives_ it such that there will be little change in mundane lifestyle when it does come. He’s been ready for global financial meltdown for decades - not as some “freak prepper” but as simply wise living. (Would that I could achieve the same.)
“...as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum’s results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.”
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So a German bank, Swiss bank, and the lowest rated bank in the UK took losses.
How is Barclays fairing? Other British banks?
Thought so.
Anonymous “expert” doom and gloom if we don’t submit to globalism.
I got everything out. I mean, EVERYTHING. It’s all tied up in commodities (my cars, tractors, tools, etc.) and real estate. And cash and junk silver.
I started this two weeks before the 2008 election. I purchased my “hobby farm” in central KY then, and moved there from seattle in 2011, five years ago this month.
Since then I added my neighbor’s 20 acres with two streams and a natural well. We’re set. Well, as set as one can be and still live in the belly of the beast.
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