Banking crisis set to trigger new credit crunch
source: http://www.telegraph.co.uk/finance/financialcrisis/8802846/Banking-crisis-set-to-trigger-new...
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- Schnookums
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By Harry Wilson, Banking Correspondent
Credit default swaps on lenders as far afield as China and Australia, countries that until recently seemed immune to the chaos, have doubled in the last two months to levels not seen since the financial crisis.
In Europe, French and Belgian government officials are due to meet on Monday to discuss the crisis enveloping Dexia as speculation mounts about a possible break-up of the Franco-Belgian lender.
Last week, the cost of insuring Dexia bonds hit an all-time high of 900 basis points, nearly double the level just two months ago, meaning the annual cost to insure €10m (£8.59m) of the bonds is £900,000.
"The money ran out in June and what you are seeing now is the beginning of a new credit crunch, except this time it will be truly global, not Western," said one senior London-based credit analyst.
Dexia, along with other European lenders, has been hard hit by the closure of the interbank lending markets and the continuing unwillingness of investors to buy the bonds of eurozone banks.
"Nothing is really working at the moment. None of the markets are functioning. Until Greece defaults it's hard to see any resolution," said one senior London-based credit analyst......
Continue at:
http://www.telegraph.co.uk/finance/financialcrisis/8802846/Banking-crisis-set-to...
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- Credit Crunch, Default, Dexia
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Kelly_Balthrop
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Yes, it's going to be a bumby ride next year. I just hope they don't bail out the global banks like they did the American banks. It's just corporate welfare to make the tax payers pay for a flawed system. The system will never get fixed as long as we keep acting as the enablers. I have been writing about this a fair bit on my blog.
The banks need to fail, so we can dismantle them and convert them into non profits, preferably owned by each state (in America). I had a lot more to say about it here.
The Second Reformation - part III
http://kellybalthrop.wordpress.com/2011/09/23/the-second-reformation-%e2%80%93-p... - 8 months ago
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Kelly_Balthrop
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PressCore
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Kelly_Balthrop:
I blogged your provided link. Thanks. We shall overcome.
- 8 months ago
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PressCore
