Europe’s Banks May Be At The Precipice Of Collapse

Often it seems like every US election features a sudden economic shock immediately prior to the vote:

GERMANY, Italy, Switzerland, Britain and France are facing the catastrophic consequences of ‘over leveraging’ as Europe’s biggest banks prepare to release their latest results over the next two days…

And analysts say the potential for a cataclysmic failure could spread like a wild-fire hitting the continent and beyond as the true extent of deep troubles in the international banking sector are revealed.

The IMF and German governments have refused to step in to prop-up struggling banks but risk analysts are warning Deutsche Bank, RBS, Lloyds, Unicredit, Intesa SanPaolo, and BMPS could all need a state bail out.

And it’s going to be a wake up call for the whole of Europe say experts who fear the reports are not going to be good for anyone.

Too big to fail, too big to save. Read the whole article, it doesn’t sound good.

All it takes is one big amygdala shock to reprogram the brain and leave everyone fearful. Once that amygdala is turned on, free and easy investment and loaning behaviors turn to hording and protectionism. In a system on the brink of a K-shift, that can trigger a snowballing effect that will suddenly vaporize the free-resource landscape, and usher in K-selection.

It will be nice if Trump inherits the collapse, rather than having to endure its onset.