Analyst: One Third Of Banks Could Collapse In 2009

Discussion in 'Economics' started by AMT4SWA, Dec 24, 2008.

  1. Analyst: One Third Of Banks Could Collapse In 2009

    Silva tells CNBC up to a thousand face failure or forced mergers

    Paul Joseph Watson
    Prison Planet.com ( http://www.infowars.com/?p=6779 )
    Wednesday, December 24, 2008

    Financial analyst Ralph Silva of TowerGroup told CNBC this morning that he expects no less than one third of banks to fail in 2009 and that anything up to a thousand could collapse if they don’t merge.

    Silva said that only five or six global banks have enough funds to survive comfortably throughout 2009.

    “The rest of the banks, and that means a thousand other banks, don’t have enough money to get themselves through 2009,” added Silva.

    “In 2009 we’re gonna see one third of the banks in the G8 countries disappear, either being merged, forced or not forced, or completely disappearing,” said Silva.

    http://www.cnbc.com/id/15840232?video=975644719&play=1

    The analyst predicted that rather than letting banks fail, governments will force them to merge, citing the example of Bradford and Bingley in the UK, which would lead to “very few banks owning quite a bit more.”

    Silva warned that banks would not be able to lend any money throughout 2009 because they would be more concerned with merely surviving and being able to pay their own employees.
     
  2. What happened to everyone calling a bottom?
     
  3. IMF warns of Great Depression

    AFP ( http://www.infowars.com/?p=6776 )
    December 23, 2008

    LONDON (AFP) — Britain edged ever closer to a recession on Tuesday and the IMF’s top economist warned of a second Great Depression, as stock markets awaited fresh US growth data in the hope of some Christmas cheer.

    Britain’s economy shrank by 0.6 percent in the three months to September compared with the previous quarter, against a previous estimate of 0.5-percent contraction given last month, the Office for National Statistics said.

    The IMF’s top economist, Olivier Blanchard, meanwhile said governments around the world should boost domestic demand in order to avoid a Great Depression similar to the downturn that shook the world in the 1930s.

    “Consumer and business confidence indexes have never fallen so far since they began. The coming months will be very bad,” Blanchard said in an interview with the French newspaper Le Monde.

    “It is imperative to stifle this loss of confidence, to restart household consumption, if we want to prevent this recession developing into a Great Depression,” he added.
     
  4. You have to know how these dark forces operate! THEY will ALWAYS tell you ahead of time what they are about to do to you next......the key is to PAY ATTENTION! :cool:
     
  5. World faces “total” financial meltdown: Bank of Spain chief

    AFP ( http://www.infowars.com/?p=6759 )
    December 22, 2008

    MADRID — The governor of the Bank of Spain on Sunday issued a bleak assessment of the economic crisis, warning that the world faced a “total” financial meltdown unseen since the Great Depression.

    “The lack of confidence is total,” Miguel Angel Fernandez Ordonez said in an interview with Spain’s El Pais daily.

    “The inter-bank (lending) market is not functioning and this is generating vicious cycles: consumers are not consuming, businessmen are not taking on workers, investors are not investing and the banks are not lending.

    “There is an almost total paralysis from which no-one is escaping,” he said, adding that any recovery — pencilled in by optimists for the end of 2009 and the start of 2010 — could be delayed if confidence is not restored.

    Ordonez recognised that falling oil prices and lower taxes could kick-start a faster-than-anticipated recovery, but warned that a deepening cycle of falling consumer demand, rising unemployment and an ongoing lending squeeze could not be ruled out.

    “This is the worst financial crisis since the Great Depression” of 1929, he added.

    FULL STORY CLICK HERE........... http://www.google.com/hostednews/afp/article/ALeqM5h2SsVV8JJZk5ooieD_bfpKcrg_qw
     
  6. talknet

    talknet

    Consider banks where people deposit money and banks trades "people's money" by giving loans to "sinking and inefficient multi-billion dollars giant companies". In the end "world economy" suffers loss of $5 trillion - $10 trillion (final amount unimaginable) because of these "worthless giant companies and banks" without any "business brains".

    Then "worldwide central banks" invests $4 trillion - $6 trillion into "sinking world economy" and then "central banks" also become bankrupt.
     
  7. Hard assets do not know their legal price tags.....

    At some price it works.......
     
  8. Wow. All this bad news. I think I'll go get a double cheeseburger -- while the opportunity is still available. :D
     
  9. By the time this crisis settles, we'll end up with 4-5 fully or semi nationalized large banks in each country. Going to BofA branch would be like going to the DMV.
     
  10. Who said banks would merge with other banks?

    There's always a possibility that the banks can merge with other businesses like Subway, Quiznos, Taco Bell, McDonalds, etc. etc. We're already seeing plenty of banks in supermarkets... why not fast food stops.

    I'd love to see BoA to be like those Taco Bell/KFCs.

    "Here's your new savings account. Want some fries with that?"
     
    #10     Dec 24, 2008