James Turk: Escalating Bank Runs, Many Banks Will Not Survive
May 25, 2012
With mounting fears regarding escalating bank runs around the world, today King World News interviewed James Turk out of Europe. Turk told KWN, “I think people should be worried because many banks around the world are largely insolvent.” Here is what Turk had to say about the accelerating crisis: “The key driver of course is the economy. Unemployment is still growing in most places around the world. The European economy, in nearly all countries, is turning down. Germany had been the power horse up until recently, pulling other countries along with it. But even the German economy is turning down.”
James Turk continues:
“But the real threat to the euro, as well as the solvency of the banking system, is the level of debt. As the economy turns down, corporate debt and individual debt, as more of it becomes doubted, the banks are going to have to take losses on that.
Typically, in a recession or depression, losses in the banking system increase. The debt makes depositors more nervous about their money and would likely lead to more bank runs….