When it comes to the
financial world, it is important to listen to what the "smart money"
is saying, but it is much more important to watch what the "smart
money" is actually doing. The ultra-wealthy and those that run the
biggest financial institutions on the planet are far more "connected"
to what is really going on in financial circles behind the scenes than you and
I could ever hope to be. But if we watch their behavior we can get clues
as to what they think is about to happen. As is the case with so many
other things, if you want to figure out what is really going on in
Even though all the warning signs were there, very few people actually expected to see the kind of financial crisis that we saw back in 2008.
But it happened.
Now very few people actually expect
another "Lehman Brothers moment" to happen
Sadly, most people never want to believe the truth until it is too late.
The following are 25 signs that the
smart money has completely written off southern
#1 Lloyd's of London is publicly admitting that it is rapidly making preparations for a collapse of the eurozone.
#2 According to the New York Times, top
global law firms are advising their clients to
withdraw all cash and all other liquid assets from
their advice is blunt: Remove cash and other liquid assets from
“My personal view is that it is irrational for anyone, whether a corporation or an individual, to be leaving money in Greek financial institutions, so long as there is a credible prospect of a euro zone exit,” said Ian M. Clark, a partner in London for White & Case, a global law firm that has a team of 10 lawyers focusing on the issue.
#3 According to CNBC,
large numbers of wealthy Europeans have been moving
their money from banks in southern Europe to banks in northern
Financial advisers and private bankers whose clients have accounts too large to be covered by a Europe-wide guarantee on deposits up to 100,000 euros ($125,000), are reporting a "bank run by wire transfer" that has picked up during May.
of this money has headed north to banks in
"It's been an ongoing process but it certainly picked up pace a couple of weeks ago We believe there is a continuous 2-3 year bank run by wire transfer," said Lorne Baring, managing director at B Capital, a Geneva-based pan European wealth management firm.
#4 The President of the Federal Reserve Bank of Philadelphia, Charles Plosser, says that the Federal Reserve is advising money market funds to reduce their exposure to Europe....
The Fed and regulators have tried to stress to money market funds, for example, to reduce their exposure to European financial institutions.
#5 The yield on 10-year Spanish bonds is rapidly moving toward the very important 7 percent level.
multinational corporations that operate in
#7 Juergen Fitschen, the co-CEO of Deutsche Bank, has publicly
#8 The head of the
Swiss central bank has admitted that
#9 The European Commission has urged all member states to develop contingency plans for a Greek exit from the euro....
Last week, the European Commission said that it has asked member states to make plans to deal with a potential Greek exit, ahead of a second round of Greek elections on 17 June.
#10 PIMCO CEO Mohamed El-Erian says that a Greek exit from the euro "is probably inevitable".
#11 Spanish stocks continue to drop like a rock.
#12 The percentage of bad loans on the books of Spanish banks has reached an 18 year high.
#13 Late on Friday, the Spanish government announced that banking giant Bankia is going to need a 19 billion euro bailout.
#14 Standard & Poor's downgraded the credit ratings of five more Spanish banks to junk status on Friday.
#15 Moody's downgraded the credit ratings of 16 Spanish banks back on May 17th.
#16 According to the Telegraph, "struggling
European banks could be seized and controlled by
#17 The head of
equity strategy at Societe Generale,
Claudia Panseri, is warning that European stocks
could fall by as much as 50 percent if
#18 Economist Marc Faber is warning that there is now a "100% chance" that there will be another global recession.
#19 There seems to be
an increasing attempt to pin the problems that
you know what? As far as
Even more than she thinks about all those now struggling to survive without jobs or public services? "I think of them equally. And I think they should also help themselves collectively." How? "By all paying their tax. Yeah."
sounds as if she's essentially saying to the Greeks and others in
"That's right." She nods calmly. "Yeah."
And what about their children, who can't conceivably be held responsible? "Well, hey, parents are responsible, right? So parents have to pay their tax."
#20 According to the Telegraph, an unidentified
member of Angela Merkel's cabinet has stated that
#21 This week the
summit will be dominated by central bankers including the host, Sir Mervyn King, Governor of the Bank of
#22 According to Zero Hedge, a major German newspaper is reporting that a Greek exit from the eurozone is a "done deal"....
"The Greece-exit is a done deal:
According to the German economic news from financial circles EU and the ECB
have abandoned the motherland of democracy as a euro member. The reason is, interestingly, not in the
upcoming elections - these are basically become irrelevant.
The EU has finally realized that the Greeks have not met any agreements and
will not continue not to meet them. A banker: "We helped with the Toika. The help of the troika was tied to conditions.
#23 According to CNBC, preparations are quietly being made to print up and distribute new drachmas should the need arise....
British banknote printer De La Rue is drawing up plans to print new drachma notes in the event of a Greek euro exit, according to an industry source with knowledge of the matter.
The world's biggest security firm G4S expects to be involved in distributing notes around the country.
#24 Citibank's chief economist Willem Buiter is warning that any new currency issued by the Greek government could "immediately fall by 60 percent".
#25 Reuters is
reporting that a planning memo exists that suggests that
debate among very knowledgeable individuals and institutions as to the future of
As I have written about previously, a
Greek exit from the euro would cause the "bank jogs" that are already happening in
The problem in
Unfortunately, there are no more
grand solutions on the horizon and so things are going to continue to get worse
As I have talked about so many times,
the next wave of the economic collapse is going to start in
During the next major economic
downturn, the official unemployment rate in the
Once that happens, perhaps many more
Americans will finally figure out that they should have been paying much more
attention to what was taking place in