Global Systemic Crisis -- First Half Of 2012: Decimation Of The Western Banks (LEAP/E2020)

[Tace]

Oct. 16, 2011 (LEAP/E2020) -- Public announcement GEAB N°58 -- As anticipated by LEAP/E2020, the second half of 2011 is seeing the world continuing its unstoppable descent into global geopolitical dislocation characterized by the convergence of monetary, financial, economic, social, political and strategic crises.

After 2010 and early 2011 which has seen the myth of a recovery and exit from the crisis shattered, it's now uncertainty that dominates the States’ decision-making processes just like businesses and individuals, inevitably generating increasing apprehension for the future. The context singularly lends itself: social explosions, political paralysis and/or instability, return to the global recession, fear over banks, currency war, the disappearance of more than 10 trillion USD in ghost-assets in three months, widespread lasting and rising unemployment....

Besides, it’s this very unhealthy financial environment that will cause the "decimation (1) of Western banks" in the first half of 2012: with their profitability in freefall, balance sheets in disarray, with the disappearance of trillions of USD assets, with states increasingly pushing for strict regulation of their activities (2), even placing them under public supervision and increasingly hostile public opinion, now the scaffold has been erected and at least 10 percent of Western banks (3) will have to pass that way in the coming quarters.

(snip)


First half of 2012: Decimation of Western banks

In fact, it will be a triple decimation (5) culminating in the disappearance of 10 percent to 20 percent of Western banks over the next year:

-- A decimation of their staff.
-- A decimation of their profits.
-- And lastly, a decimation of the number of banks.

It will be accompanied, of course, by a drastic reduction in their role and importance in the global economy and directly affect banking institutions in other regions of the world and other financial operators (insurers, pension funds....

more

http://worldnewstrust.com/global-systemic-crisis-first-half-of-2012-decimation-of-the-western-banks-leap/e2020.html

[Hotler]

1. k&r n/t

[Fuddnik]

2. Kick and Rec!

[musiclawyer]

3. I'm not sophisticated in finance but........

...... I am glad that I have my money in a local credit union and do not bank on-line
If I was involved in either or both of the above, I would get out ASAP. The big banks got too big, too greedy, and to undisciplined and. hence, must fail. Small wage employees will get hurt and I feel bad, but a reorganization of society at all levels is in order for the long term benefit of the citizenry and the planet.

[JayhawkSD]

5. I'm not sure it's as simple as greed.

I sense it's more a matter of uncontrolled and unrestrained competetion for power, and unbridled lust to be the biggest and most powerful. I think we see similar forces driving politics.

[elleng]

6. I agree. Power is a big mover of people,

in personal as well as professional/business/political realms.

Anyone who works in any 'institution,' schools, businesses small and large, government agencies, can see this, and it happens in families and among 'friends' as well.

Seems to be a part of the human condition, and maybe appears exacerbated now due to instantaneous and worldwide communications.

[elleng]

4. Interesting and sounds accurate.

1. Therefore, the simplest solution (after that of overcharging clients) is to lay off tens of thousands of employees. And that's what is happening. But far from being a controlled process, we see that every six months or so Western bank leaders find that they had underestimated the extent of the problems and are therefore obliged to announce further mass layoffs. . .

2. This is also one of the Western banking system’s characteristics as a whole: these private financial players (or market listed) are worth practically nothing. Their market capitalization has gone up in smoke. Of course this creates an opportunity for nationalization at low cost to the taxpayer from 2012 because it’s the choice that will be imposed on States, in the United States as in Europe or Japan.

Whether it be, for example, Bank of America (23), CitiGroup or Morgan Stanley (24) in the United States, RBS (25) or Lloyds in the United Kingdom (26), Société Générale in France, Deutsche Bank (27) in Germany, or UBS (28) in Switzerland (29), some very large institutions "too big to fail" will fail. They will be accompanied by a whole swathe of medium or small banks such as Max Bank which has just filed for bankruptcy in Denmark (30).
 
Faced with this "decimation." States’ resources will be quickly overrun, especially in these times of austerity, low tax revenues and the political unpopularity of the bank bailout (31). Political leaders will, therefore, have to focus on protecting the interests of savers (32) and employees (two areas full of electoral promise) instead of safeguarding the interests of bank executives and shareholders (two areas full of electoral pitfalls, whose precedent in 2008 demonstrated its economic futility (33)).

This will result in a new collapse in financial stock prices (including insurance, considered very "close" the banking situation) and increase hedge funds, pension funds (34) and other players’ turmoil traditionally closely intertwined with the Western banking sector. No doubt this will only strengthen the general recessionary environment by limiting loans to the economy just as much (35).

[applegrove]

7. But decimation of companies is what happens during deregulations.

This would have happened anyway.