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Discussion Starter · #1 · (Edited)
Newspapers in Germany are reporting that a 35bn EURO bailout plan for Hypo Real Estate has fallen apart. Apparently Deutsche Bank after doing due diligence has concluded that HRX would need at least 50bn by year and and a total of 80 to 100bn (so, 140bn USD) by end of 09.

This is major, since about 26bn of the 35bn came in form of govt. guarantees and only 9bn from banks. Looks like it will be quite choppy going come monday morning on European markets. Don't forget about the CDS settlement also.

Not one for conspiracy theories myself, but wow, things sure look like Steve Quayle and those web bot people could be right with their predictions about a bank holiday this week. This is some scary stuff....HRX said they have ZERO exposure to the financial crisis just a few months ago!

English language article on HRX
 

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Thanks for posting this. How widespread of a problem is this in Europe? I'm asking because I still wonder how much of this is Bush and crew just trying to scare people into getting something passed through Congress.
 

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Discussion Starter · #3 ·
The problem is quite widespread already - it started with nationalisation of Northern Rock in UK a few months ago and in the last week has gained major speed. Last week alone was 4 or 5 major bailouts...not sure about the 5th yet (Banco Santander in spain apparently got 18bn euro guarantee to protect deposits). The houses that are gone are huge...B & B in england was the 3rd largest retail bank. Fortis in Belgium was by far the largest bank there, Hypo Real Estate is one of the banks listed in the large cap index on the stock market here etc. etc. this thing has gone global
 

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the problem is that they have by fiat currency created by the central banks of all these countries inflated the money supply beyond their ability to cover it. creating new money - which then allowed the investors to inflate realestate stocks and commodities thru speculation, and invent a new financial tool -- derivitives-- with no real backing. now that realestate is falling - being the main source of base value of the markets and investments there isnt enough real value to cover all the investments --- and im afraid all they are shoveling in is going down a black hole. the GSEs mac and Mae are typical -- having $30 in debt for every $1 in liquidity.

if enough money is manufactured to cover these huge liquidity gaps the result will be massive inflation. and the 1000 trillion derivitives market hasnt been delt with yet.

they may buy a little time but that is the best we can hope for ----
git ready --
git set---
**** the bankers and politicians took all tha life boats
 
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