|Imminent Financial Crisis?|
You won't see this repeated in U..S. media outlets, but Europe is running scared of an impending financial disaster.
Barclays Capital, the Royal Bank of Scotland
and Fortis are pulling away from the U.S. financial markets. The
withdrawal of funds from New York institutions has not been reported, but
amounts to at least a mini-run on the banks involved, similar to what
happened to Bear Stearns in March; the run may be
These major financial institutions in Europe are predicting imminent, major economic and market meltdowns.
Fortis expects a complete collapse of the US financial markets within a few days to weeks. That explains, according to Fortis, the series of interventions of last Thursday to retrieve € 8 billion.
At the same time, the Royal Bank of
Scotland headlined warnings of a global crash:
The Royal Bank of Scotland has advised clients to brace for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks.
Lastly, Barclays Capital warned clients to "batten down the hatches for a worldwide financial storm":
On July 2, U.S. Treasury Secretary Henry Paulson's European speech was covered live on CSPAN. He gave considerable lip-service to what would happen if a number of U.S. banks were to fail, including even a major U.S. bank. No bank names were mentioned, but the fact that he brought it up indicates that the Europeans are very concerned about it.