Von Greyerz – Bank Failures, Disorder, Massive Panic & Gold
April 18, 2012
Today Egon von Greyerz told King World News that dominos are falling daily and we should expect to see more chaos in the banking system, including failures. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. Von Greyerz also said we are edging closer to panic and he expects this will accelerate the flow of funds into gold. Here is what Greyerz had to say about the situation: “Eric, I don’t know if you read the book by John Galbraith, ‘The Great Crash 1929?’ He wrote about how every day there was a bad piece of news, and in the end, everybody gets immune to it. I think that’s exactly what we are seeing now.”
Egon von Greyerz continues:
“There is so much bad news every single day that people are not reacting to it. What will happen is all of this pent-up risk is going to erupt one day. I’m seeing the dominos falling here, daily.
We talked about Spain last time. Spain has now borrowed $415 billion from the ECB, and that’s about 63% of the total ECB lending. Bad debts in the Spanish banks are going up at record levels. Bad debts over the last 3 months are now 8% of total debt. That’s massive.
It also means defaults are not far away, and the banks haven’t reserved for these…