One thing missing from basically all economic analyses of the… Read More »The approaching European (global) banking crisis
The massive economic blow caused by the Covid-19 will, most likely, bring an end to the European common currency, euro.
The economic calm which has succeeded the turbulent conclusion to 2018 was abruptly shattered on the 16th of September. On that day, rates in the repo markets spiked by 248 basis points to more than double the overnight lending rate of the…
The U.S. has been an exception in a slowing global economy for the past year. However, it cannot escape the coming global recession and economic collapse.
The world economy has not been in a more precarious situation in over a decade. Growth is faltering everywhere, with the Eurozone flirting with recession, while central banks have returned to monetary easing after just one year of global tightening.
For some reason, the dire situation of European banks is not causing further alarm. This is strange, as it is the exact place where the new global banking crisis is likely to start.
What makes it even stranger is that recession is approaching the …