Sackers: Telegraph, 24 August:
Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group’s implosion nearly three years ago.
Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday.
A Swiss-based bank credit specialist I’ve known for some time now insists that it is bank viability, not bonds, that’s kept the EU’s central bankers chained to their Frankfurt desks.
Well the Stagflation of the 1970’s destroyed this theory; killed it stone-dead. Yet like some kind of George Romero creation, the zombie of Keynesianism still stalks the corridors of power. There are basically two reasons for this; first Krugman and many a lesser known establishment economist runs a kind of intellectual cover for this nonsense. The media swallow this dross more or less whole and so when the shadow-chancellor goes on TV and talks about the ‘cuts’ being ‘too-far, too-fast’ there are those who take him seriously.
It seems like the mainstream media is an unofficial accomplice of the banking crime syndicate which is running/ruining our markets and economies. Nowhere is this despicable relationship more apparent than in its deliberate efforts to grossly misinform investors on the critical subject of risk. Honestly, does anyone think it smart to keep money in bust banks that pay sub-inflation interest rates?
Five U.S. banks were to default in January 2012, by the definition of the regulatory body. The regulatory body redefined insolvency as not a default … and they officially didn’t. This is the sort of thing going on. There is no longer just criminality and fraud – it’s now gone to a stage which doesn’t really have a definition because hitherto, it’s never been so blatant and the MSM collusion so apparent.
Filed under: Politics & economics