36 Responses to Marketwatch warns EU banks will crash Wall Street

  1. Jane says:

    So if the trend in Louisiana continues with the cash “NO GOOD HERE”, and Cash is NO GOOD what good is GOLD? Sure you can change it in for Cash but its NO GOOD. Someone explain this to me. If would seem durable goods while you can buy them would be the smartest investment.
    Right? No doubt we are in a difficult time. I just hope it brings people back to goodness and figuring out we all even our spoiled children need to grow up. Figure out how to grow food and survive without luxury

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  2. frank says:

    Greece will go, and drag italy and spain with them. And then they will drag a few banks with them, those banks will drag more, deadly chain that won’t stop.

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  3. Dennis E. says:

    Another warning, what is happening in Greece can happen here. I am not disappointed with the current administration, it is operating as expected. It is bringing a Greece type crisis to this country.

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  4. Maiden PEI says:

    I don’t understand . . .

    I thought all the money has been going to the banks.

    But if if the banks are bankrupt, where did the money go?

    And if the banks AND the countries are broke, where are the bank bailouts coming from?

    Who DOES have the money?????

    I don’t have any of it . . . do you? LOL

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  5. Mike. says:

    Don’t be fooled by these Elite guys, they want your gold and your stocks leaving you with soon to be valueless cash under your mattress. Can’t you see their plan?

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  6. Mike. says:

    If you have ‘dodgy’ shares sell and buy major UK bank shares now. The Elite are waiting for the banks to crash by scaring shareholders to sell, only to buy them out cheap and have total control over our money IMO. Lioyds Banking Group are a good investment for instance as they have the least of European exposure if it collapses, so I believe.

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  7. For those who rely in earthly treasures, this is frightening.

    Matthew 6:20
    “But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:”

    Maranatha

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  8. nickk0 says:

    So, the Wal-Street Banksters, who already ‘hold the cards’ and are ALREADY rich, will EXPECT another “bailout”, from a Broke (and soon to be Bankrupt) US Govt.??

    Insanity.

    – Nick

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  9. J Guffey says:

    This may sound like a dumb question to some, but I am curious. If a bank fails and shuts it’s doors, I know people with money in that bank can loose it. Do the people that have borrowed from the bank have to pay it back?

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    • Aaron says:

      Yes, because a different bank will purchase the bankrupting bank’s loans.

      Bank A is going bankrupt.
      Bank B is buying Bank A’s assets (read: mortgages and loans).

      Bank B buys assets from Bank A for .30 on the dollar (or some other ridiculous discount). This means for every dollar of loans owed, they pay only 30 cents. i.e. Bank B buys a mortgage from Bank A that the customer still owes $200,000 on, but Bank B only pays Bank A $60,000. The customer now owes Bank B the full value of $200,000. Bank A then uses the $60,000 to pay off it’s own debt that it owes to vendors and yes, even shareholders.

      Meanwhile, the customer never has the opportunity to pay the discounted rate of .30 on the dollar for their own mortgage.

      I simplified things by leaving out interest, and I’ll stop now before I start into a biased rant. I hope that clarified things for you.

      Like

      • Mike. says:

        And confirmed that my suggestion to buy major UK bank shares, now they are down, may not be an unwise move?

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      • J Guffey says:

        Thank Aaron – it did simplify for me.

        In a worse case situation: Government is backrupt, FDIC belly-up, Banks belly-up

        If a person has a….
        Secured home loan with Bank A for $100,000
        Also has a Checkings Account in Bank A in amount of $125,000
        Could that person loose their $125,000 and the bank still require them to pay their mortgage loan or risk losing the home?

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      • Aaron says:

        Guffey, if the Government is bankrupt, and the FDIC can’t pay out to cover consumers’ assets, and a bank goes belly up.

        I honestly have no idea. Sounds like chaos to me, and everything is up for grabs.

        Really depends on how the dissolution of the FDIC would happen. Sounds like an end-game scenario, though. At that point, any “money” that anyone has is useless.

        Like

    • Maiden PEI says:

      Good question . . . don’t know the answer.

      Like

  10. So what do we do exactly now? What do we invest in? Gold and silver everyone says, but historically the gov takes it away from you and gold seems so pricey – if the grid goes down, then how will we monitor it’s value? To me food, water, fresh air, seeds, solar generator are valuable and having ways to get the radiation out of your body… also how can we protect ourselves from gamma rays – the maximum solar events are coming I think and I don’t know how to protect my family…

    I love your blog and follow it, then share it in meetings weekly where we are preparing alternative economies, getting food, water, etc as a collective in Taos, New Mexico. Take care

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    • Glad to know you are preparing Wendy. Thanks for weighing in and I’m sure others will be inspired by your efforts and industry of preparation.

      peace and blessings,
      Alvin

      Like

      • Ronni says:

        Alvin,
        As each day goes by, I become more convinced that it will not matter what we do to prepare. Please tell me I’m wrong.

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      • We will be plunged into the depth of a series of multiple adversities. What’s important is to survive the first and maybe second round of a major economic washout so you can be removed from the urban chaos and violence that follows a Great Depression or multiple bank failure scenarios. When the well runs dry; after that, we’re all on our own. This is all about mitigating first round impact- probably little more. When food runs out in the city…people will start roaming the countryside and preying on each other. The problem is not 7 billion people on the planet…the problem will be 7 billion people on the planet with no food or means to sustain themselves when things start failing. France had a population boom of 70 million people, the largest in Europe, prior to the Revolution when the country descended into chaos and what followed after the terrible winter and famine of 1788 and 1789 brought on by the volcanic eruption of Laki in Iceland is almost the stuff or horror stories.* So you have a population boom, a bankrupt country which drained the French Treasury supporting the foreign war of the American Revolution, and a geological disaster that pushed all this over the edge and the country disintegrated into barbarism. Sounds familiar? The French Revolution happened in France with the Age of Enlightenment and burgeoning intellectualism as a backdrop and the horrors of the Reign of Terror still sprang up in its wake- one shudders to think what will happen with a collapse in America or anywhere else in the world if protests are running on nothing more than adrenalin, desperation, and revolutionary anger.

        * Under the penalty of The Law of 22 Prairial, also known as the loi de la Grande Terreur, the law of the Reign of Terror, which was enacted on June 10, 1794, people could be arrested on nothing more than suspicion, tried and executed in a 24 hour period.

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  11. luisport says:

    zerohedge zerohedge
    Greek Parliamentary Garage On Fire And Other Dramatic Footage From Today’s Athens Riots http://www.zerohedge.com/node/439393
    há 12 minutos

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  12. RainMan says:

    If the banks collapse and your savings aren’t government secured you will probably get little back (depends on your countries laws). It doesn’t really matter much, fiat money will only be worth the ink thats printed on it and it won’t buy you much. Out there (when hell breaks loose) it wont have any intrinsic value (and no shops will be opened or stocked).
    Rest assured, if you owe money on unsecured accounts, ie credit cards, you will hurt. They can up the interest at their leisure (and they will) as the interest is not fixed, and it’s compounding. Pay off any unsecured interest, it will not get lost by the banks in a crash, it’s their bread and butter.
    Hope I’m wrong.

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  13. RainMan says:

    We used to have Steve Jobs, Johnny Cash and Bob Hope. Now we have no jobs, no cash, no hope.

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  14. Peter says:

    I would like to ask exactly the same question as our friend here J GUFFEY.I fear for the worst case scenario should the banks shut their doors God forbid.No cash,no hole in the wall,no money for food,no cash for petrol.No funds or cash in your wallet.With no food we would only depend on soup kitchens just like the late 1920’s.Please tell me I am wrong.

    Peter UK

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    • The idea of believing cash has an relative instrinic value was proven a fallacy by the U.S. TAARP bailout. Hank Paulson didn’t just pull the figure of $700 billion out of the air…the amount of money was about equal to all the money believed to be in circulation in the U.S. and what good has it done? Nothing, but nudge inflation upwards. The reality is more and more cash is entering the black market through laundering, vice, drug sales, government payoffs, ect. There is no way to ever exact tax revenue on the vast majority of it since it is enterprised in illegal commerce and activity. For example, millions of dollars were sent on pallets to Iraq that is still unaccounted for: http://www.independent.co.uk/news/world/americas/a-fraud-bigger-than-madoff-1622987.html

      The only way to solve this crisis is to completely do away with cash…and that way, every transaction is controlled by the powers that be. “That no man might buy or sale,” as the Bible warns in the 13th chapter of Revelation. Not only will paper assets be worthless…people will be lighting fires with U.S. paper tender before it’s over with. That’s why people are laundering cash into gold.

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      • Mike. says:

        That’s why wise people are selling their gold for cash now to pay off debts and mortgages to avoid coming debt collectors and foreclosures? Also you can’t eat gold or keep your home warm burning it and it is not an easily tangible street asset like tinned or dried food or other essential day to day commodities.

        Warning to Rich Oppressors
        James 5:1 Now listen, you rich people, weep and wail because of the misery that is coming upon you. 2 Your wealth has rotted, and moths have eaten your clothes. 3 Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. 4 Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. 5 You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter. 6 You have condemned and murdered innocent men, who were not opposing you.

        Patience in Suffering
        7 Be patient, then, brothers, until the Lord’s coming. See how the farmer waits for the land to yield its valuable crop and how patient he is for the autumn and spring rains. 8 You too, be patient and stand firm, because the Lord’s coming is near.

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    • Dennis E. says:

      Peter: Dennis E. Here… Some have posted that they are collecting a pantry and are discussing consolidation of assets and resources with families. Some probably have some cash on hand as long as it can be used. It would probably be wise for you to do the same, remembering if this happens, we could be also be having to cope with continual drastic earth changes.

      Just an idea………………

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  15. Debra says:

    We are heading toward a cash-less society. It is all just paper now! There is no gold at / in Ft. Knox – at least that seems to be general consensus – it seems we are guarding a joke.

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  16. RainMan says:

    One more joke…
    Goldman Sachs are going to try to profit from the OWS, they have set up a “Rage Fund” that will invest in companies that makes police batons, pepper spray, bandages and glass windows.
    He he, where do I sign up.

    Like

  17. Will Smith says:

    What makes anyone think gold will be worth any more than greenbacks? If the depression is truly of epic proportions then the only thing of value will be water, land, secured shelter, and commodities. Try to envision a barter economy reminescent of ancient cultures with enormous power struggles between armed entities, on a national, state, local, and individual level.

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  18. no Mike ,you cant eat gold,but you can eat what gold will buy.

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  19. luisport says:

    “Yesterday, Moody’s sliced to Aa2 from Aa1 the long-term, senior unsecured debt ratings of ANZ Banking Group, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp, citing their reliance on offshore funding.”
    http://www.smartcompany.com.au/economy/20110519-moody-s-big-bank-downgrades-surprises-analysts-but-shareholders-not-fussed.html

    Like

  20. sawltixh says:

    no cash and barter system..that’s all what’s coming in my mind…

    Like

  21. luisport says:

    zerohedge zerohedge
    It’s Baaack: FT Deutschland Pronounces Deutsche Mark’s Return, Sets EURDEM Exchange Rate At 1.95 http://www.zerohedge.com/node/439418
    há 4 minutos

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    • RainMan says:

      I often thought the Greeks would revert back to the D’s and EU would lick their wounds and carry on, but rumors(?) Germany reverting back to DM’s, that’s a war in the making.
      What an evil web we weave.

      Like

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