Are we at the doors of the Great World financial collapse?



In recent days are accelerating the news of the imminent financial collapse of the entire planet.

Russia Today published this article a few hours ago:

Stir on Wall Street and the big banks: Economic close Final Judgment?

Experts see signs that something terrible is brewing in the global financial system.

Investors, central banks and Wall Street, all well versed in the pitfalls of the global economy is unusually active lately. Is is collapsing the world financial system, asks

George Soros, the famous investor who has many contacts in the financial world, is always at the forefront of the economic future, and if something big was going to happen would know long before the common people, estimates the portal.

Gold under the pillow

Precisely, it is striking that the billionaire has broken more than one million shares of financial companies and banks, among which include Citigroup, JP Morgan and Goldman Sachs. The total value of stock sales totaled nearly $ 50 million. At the same time, while selling bank shares, 884,000 shares purchased some gold worth $ 130 million. experts. believe their own steps are someone who believes that a collapse of the financial system is about to happen. But he’s not the only one who has been busy accumulating gold. Another billionaire John Paulson (who won $ 20,000 million in the crisis of subprime mortgages) is actively buying gold and his company now has 44% of its fund of 24,000 million dollars exposed to precious metals. The central banks of different nations of the world have also increased by more than twice their purchases of gold between April and July this year compared with the same period last year.

Jumping overboard? Wall Street?

While many Wall Street executives are cautiously optimistic about the direction for the rest of the year, their actions indicate otherwise. The level of sales of securities of companies in the S & P 500 (SPX) is close to being the highest in the past 10 years. And that’s not a good sign: a lot of executives out of the game even though the indicators remain positive. Overall, more than 10,000 million have withdrawn from mutual funds only in the last two weeks. In addition, there are concerns about the fact that more than 600 bank executives have resigned from their posts in the last 12 months, which is also quite alarming.

U.S. loads of ‘last rounds’

It seems that the U.S. quickly preparing for something really big. In August it was revealed that the Social Security Administration of the country plans to buy 174 000 hollow point bullets that will be distributed among 41 different sites across the country. Earlier in March, the Department of Homeland Security (Homeland Security) purchased 450 million hollow point bullets, which also raises questions about the possible fate of such amounts. Furthermore, these grim prospects contributes frustration and anger of Americans by the current economic situation, an outrage that will be enhanced as a result of the presidential election.

In the next war was recently published this other news:

A financial crash can hit the world economy in a matter of weeks, say bankers.

A crash more serious than that caused by the collapse of Lehman Brothers could be on the way, according to alarm signals in the credit markets.

Insurance on the debt of several major European banks have reached historic levels, even more than during the financial crisis caused by the implosion of the financial group in the U.S., nearly three years ago.

Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, sounded the alarm Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £ 10m of bonds backed by the lender against the State bankruptcy is now £ 343,540 .

The cost of insuring RBS bonds is now higher than before the state was forced to step in and rescue the bank in October 2008, and shows the recent dramatic decline in investor sentiment credit to banks.

“The problem is the lack of liquidity. That is what is causing the problems with the banks. It feels exactly as it felt in 2008, “said a senior executive of the London-based bank.

“I think we’re heading to a market crash in September or October, will exceed anything we’ve seen before,” said a senior banker from a major European bank credit.

However, bank shares rebounded on Wednesday, showing the growing disconnect between equity investors and credit. RBS slammed 9pc to 21.87p, while Barclays fell by 3pc for 149.6pa Although CDS hit a bank in the past 12 months. This reflects U.S. trend, with Bank of America until the late 10s of the last day on Wall Stree. Hit a low in the last 12 months on Tuesday on fears it may have to raise up to $ 200 billion (£ 121bn). As with European banks, the rebound in the share price was not reflected in the credit markets, where its CDS reached a maximum of 12 months of 384.42 points.

European stocks joined the demonstration. The Dow closed up 1.5pc in 5206 in the hope that the possibility of a global recession had diminished. European shares hit a one week, with the German DAX closed at 2.7pc and France’s CAC 1.8pc. The Dow Jones rose with strong durable goods orders as markets began to accept that the U.S. Federal Reserve is unlikely to bring new stimulus at Jackson Hole on Friday.

Even Moody’s decision to downgrade Japan’s sovereign debt by one notch to Aa3 did little to damage global sentiment, although Tokyo’s Nikkei closed at a little more than 1 unit.

While market jitters remain, gold – which has recently steady increases as investors seek a safe haven – fell 5.3pc to $ 1,777 in London.


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