The European Banking System is Finally on the Verge of Collapse
BY KEITH FITZ-GERALD
I hate to sound alarmist, but it looks as though the European banking system – and consequently the global banking system – is edging its way towards another epic collapse.
That means in just a few short months, stocks could be back at their 2009 lows while gold prices travel north of $2,500 an ounce.
This is the worst-case scenario that’s been bandied about ever since Europe’s debt problems first came to light.
How do we know that this is what’s happening?
Because somebody is having trouble obtaining the money they need — and they just borrowed it from the lender of last resort.
The European Central Bank (ECB) last week lent $500 million dollars to an undisclosed Eurozone bank through a credit mechanism that had been dormant for the past 12 months, with the exception of one $70 million draw in February.
This comes as no surprise – the warning signs have always been there.