‘With each passing day, the banking crisis in
And at the moment, things across the pond are moving at a pace that is absolutely breathtaking.
following are 18 signs that the banking crisis in
#1 Moody's has announced that it has downgraded the credit ratings of 16 Spanish banks. Included was Banco Santander, the largest bank in the eurozone.
#2 Shares of
the fourth largest bank in
#3 Overall, shares of Bankia have declined by 61 percent since last July.
#4 Shares of
the largest bank in
#5 According to CNBC, a Spanish bond auction on Thursday went very poorly....
The Spanish Treasury had to pay around 5 percent to attract buyers of three- and four-year bonds. The longer-dated paper sold with a yield of 5.106 percent, way above the 3.374 percent the last time it was auctioned.
#6 The yield on 10 year Spanish bonds is back above 6 percent.
#7 In recent days, about eight times more money than usual has been pulled out of Greek banks.
#8 Fitch has
slashed the long-term credit rating for
#9 The European Central Bank has cut off direct lending to at least 4 Greek banks.
#10 According to a recent German documentary, financial records
at the Ministry of Finance in
#11 The euro hit a 4 month low against the U.S. dollar on Thursday.
#12 It has been announced that the Spanish economy and the Italian economy are officially in recession.
#13 The Spanish government is becoming increasingly concerned about the bad loans that are mounting at major Spanish banks. The following is from a recent Bloomberg article....
government has asked lenders to increase provisions for bad debt by 54 billion euros ($70 billion) to 166 billion euros.
That’s enough to cover losses of about 50 percent on loans to property
developers and construction firms, according to the Bank of
those into account, banks would need to increase provisions by as much as five
times what the government says, or 270 billion euros,
according to estimates by the Centre for European Policy Studies, a
Brussels-based research group. Plugging that hole would increase
#14 Civil unrest is rising to dangerous levels in
Governments all over
British government is making urgent preparations to cope with the fallout of a
possible Greek exit from the single currency, after the governor of the Bank of
#16 According to CNBC,
the banking crisis in
The euro zone debt crisis is affecting trade as companies shy away from dealing with firms and banks in countries deemed at risk of contagion, a senior banker said on Thursday.
#17 Moody's downgraded the credit ratings of 26 Italian banks on Monday.
#18 Moody's has announced that it is reviewing the credit ratings of 114 more European financial institutions.
Newspapers all over the globe are speaking breathlessly of a potential Greek exit from the euro, but it is very unlikely to happen before the next Greek election on June 17th.
rest of Europe is going to continue to financially support
the new government is willing to accept the previous bailout agreements, then
financial support for
the new government is not willing to accept the previous bailout agreements,
then financial support for
If that happens, the bank runs in Europe will likely become a lot worse.
Beyond that, there is no telling what is going to happen.
The second half of 2012 is going to be fascinating to watch.
Hopefully things will not be as bad as many of us now fear they may be.