Wednesday, August 31, 2011

Next Global Financial Crisis Looms

Shah Gilani


Finance analysts are predicting that the world is on the verge of yet another financial meltdown and will be tipped off by the credit default of a European country or the rejection of a central bank in the interbank borrowing market. The resulting panic will set a global collapse in motion that will rival or surpass that seen in 2008. Experts say the problem will be exacerbated by central banks’ inability to take on more sovereign debt. Printing money devalues their debt, and borrowing from beleaguered countries to lend to distressed banks only increases suspect debt. This could cause banks to stop lending to one another and the entire system may freeze.

The primary danger we face is not a sovereign default. It's that banks will stop trusting what's really on the balance sheets of their peers and consequently stop lending to one another in the short-term funding market. If just one money-center bank with significant balance sheet exposure is turned away from the interbank funding market, other banks will clamor for liquidity by hoarding cash and seizing collateral. Consequently, the whole system could falter, freeze and crack. Market volatility has many fathers, but the big daddy of them all is that worldwide contagion will follow a banking panic.

14 comments:

  1. money's already fleeing europe. banks here are having to enact controls and fee's due to the influx of money coming here. nice trap huh.

    ReplyDelete
  2. Dont know what anyone is worried about? I was dirt poor prior to the great recession, and still am.
    Is there anyone who visits this website really lost a foutune?
    I think not, most are more poor then rich, and nothing has changed.

    ReplyDelete
  3. DIDJA SEE WHAT THE "DUMB-ASS" GOV. OF CONNECTICUT SAID ABOUT RON PAUL? YOU KNOW WHEN A GROWN MAN (GOV. OF CT.) STILL BELIEVES IN SANTA CLAUSE IT IS TIME TO CALL IT QUITS. LIKE HE IS THE ONLY ONE WHO EVER HAD PROBLEMS. ALL THE STATES ARE HURTING! ALL THE MONEY IS SPENT! I WOULD LIKE TO TELL THE GOV. TO JOIN RON PAUL AND STOP THE UNCONSTITUTIONAL, INSANE, AND IMMORAL WARS. MAY AFTER HE WAKES UP, HE CAN GET HIS STATE REPAIRED. THERE IS A "STRONG WIND" BLOWING!!!

    ReplyDelete
  4. 10:03 I see you clearly! Take this as a warning, Those who despise violence should not carry violence in their hearts! You lose before you start. Am I right, weatherman?

    ReplyDelete
  5. This financial crisis can be taken care of but one needs to have the proper planning for it
    Payday Bank

    ReplyDelete
  6. WARNING: The WORST 2011 MARKET CRASH IS COMING

    BILDERBERG 2011 MEETINGS: Economic Collapse - Imminent Global Financial Crisis and U.S. Dollar Collapse!

    *** globaleconomicwarning.blogspot.com ***

    ReplyDelete
  7. According to my vision, Finance crisis will not be in the scene again now. Situation will be recovered soon.You have shared a good information.Thanks for such post.

    ReplyDelete
  8. I think such financial crisis will not take place again as it will be recovered soon . You have shared a great post. Keep sharing.

    ReplyDelete
  9. This coming financial crisis can be sorted out before it's arrival.Thanks for such post.

    ReplyDelete
  10. Many economist are predicting it the hardest slowdown ever as this has shaked the complete world specially the European zone is totally under the water.Banks have almost stop trusting any place to invest and any lending to borrower.

    ReplyDelete
  11. Excellent post as the content is very different and I liked it .
    Goa Escorts Services

    ReplyDelete
  12. Very cool post. I just recently started following your blog, but I look forward to contributing more in the future.

    ReplyDelete
  13. Thanks for sharing this information. Nice work. Keep it up

    ReplyDelete

  14. @@@@Thanks For Sharing..............................................................@@@@@

    Hi Your post is very attractive .very nice! Keep your post.images are super@Escort Goa
    Call Girls in Goa/
    Goa Call Girls
    Goa Escorts
    Escorts in GoaGoa Female Escorts/
    Personal Services in Goa/
    Call Girls Rates/


    Call Girls in Goa providing best Goa Escort Services.and Female Model Escorts in goa.We are offering best Call Girl services & Female Escort services in goa.For more details Contact Us:09967541580

    ReplyDelete

Everyone is encouraged to participate with civilized comments.