Market crash ‘could hit within weeks’, warn bankers
Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group’s implosion nearly three years ago.
Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £10m of the state-backed lender’s bonds against default is now £343,540.
The cost of insuring RBS bonds is now higher than before the taxpayer was forced to step in and rescue the bank in October 2008, and shows the recent dramatic downturn in sentiment among credit investors towards banks.
“The problem is a shortage of liquidity – that is what is causing the problems with the banks. It feels exactly as it felt in 2008,” said one senior London-based bank executive.
“I think we are heading for a market shock in September or October that will match anything we have ever seen before,” said a senior credit banker at a major European bank.
Despite this, bank shares rebounded on Wednesday, showing the growing disconnect between equity and credit investors. RBS closed up 9pc at 21.87p, while Barclays put on 3pc to 149.6p despite credit default swaps on the bank hitting a 12-month high. This mirrored the US trend, with Bank of America shares up 10pc in late Wall Street trade after a hitting a 12-month low on Tuesday over fears that it might have to raise as much as $200bn (£121bn). As with the European banks, the rebound in the share price was not reflected in the credit markets, where its CDS reached a 12-month high of 384.42 basis points.
European stock markets joined in the rally. The FTSE closed up 1.5pc at 5,206 on hopes the chance of a global recession had diminished. European shares hit a one-week high, with Germany’s DAX closing up 2.7pc and France’s CAC 1.8pc higher. The Dow Jones index edged higher on strong durable goods orders data as markets began to accept that the US Federal Reserve is unlikely to signal fresh stimulus at Jackson Hole this Friday. – Telegraph.uk
Satan is desperately trying to save his beast. But no salvation will come for the United States. The financial crisis will worsen. All plans conceived will fail. The economy will go down in ruins. The government will take aim on the religious community to try and gain its wealth from the reserves of the churches, but all will fail as the debt ratio climbs and the economy continues to shrink into oblivion. Nothing can change this from happening. It’s Father’s will. And because Father began the economic fall with Satan’s prized beast it will continue to quake a path of economic failures around the globe. It will be a domino toppling effect. Satan will be forced to consider the restructuring of the monetary system with the European Union leading the way. As the image of the beast rises to help end the worldwide crisis, the United States will sanction its authority.
Revelation 13:15 “He was permitted to give a spirit to the image of the beast, so that the image of the beast could both speak and cause whoever would not worship the image of the beast to be killed.”
Those that resist the rise of the image of the beast will be executed for resistance to the new authority. There will be a one world currency. There will be a removal of Christianity.