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Europe Is About to Implode... Are You Ready?
I've warned time and again that the EU would collapse in May-June. That collapse is here right on schedule. And NO ONE will be able to stop it.
Here's why:
1) According to the IMF, European banks as a whole are leveraged at 26 to 1 (this data point is based on reported loans... the real leverage levels are much, much higher.) These are a Lehman Brothers leverage levels.
2) The European Banking system is over $46 trillion in size (nearly 3X total EU GDP).
3) The European Central Bank's (ECB) balance sheet is now nearly $4 trillion in size (larger than Germany's economy and roughly 1/3 the size of the ENTIRE EU's GDP). Aside from the inflationary and systemic risks this poses (the ECB is now leveraged at over 36 to 1).
4) Over a quarter of the ECB's balance sheet is PIIGS' debt which the ECB will dump any and all losses from onto national Central Banks (read: Germany)
So we're talking about a banking system that is nearly four times that of the US ($46 trillion vs. $12 trillion) with at least twice the amount of leverage (26 to 1 for the EU vs. 13 to 1 for the US), and a Central Bank that has stuffed its balance sheet with loads of garbage debts, giving it a leverage level of 36 to 1.
And all of this is occurring in a region of 17 different countries none of which have a great history of getting along... at a time when old political tensions are rapidly heating up (see Germany and France's recent butting of heads over fiscal policy).
So if you’re not already taking steps to prepare for the coming collapse, you need to do so now. The US will not escape from this unscathed. No one will. The global banking system is too interconnected: some estimates put US exposure in the ballpark of several TRILLION Dollars.
Again if you are not preparing for this, YOU NEED TO DO SO NOW.
I recently published a report showing investors how to prepare for this. It’s called How to Play the Collapse of the European Banking System and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.
This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com
Good Investing!
Graham Summers
PS. We also feature numerous other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.
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a gutter to be shared by all of first world without exceptions...
Don't you follow the news here? The ECB already said NO to Spain. They don't have the money to nationalize their own banks.
Yeah, but didn't they say "No" to Greece before the six or seven times that they gave them assistance (thus far)?
"The ECB already said NO to Spain."
...right, the ECB already loaned out hundreds of billions to the banks, and monetized hundreds of billions in periphery bonds, but because they said no to one iteration of a Spanish bailout plan, that means they won't be inflating any more going forward? Do you remember how many rumored and real bailout plans in Europe have been proposed and shot down over the years since this began? It makes me laugh that folks still get excited about the "will they or won't they(!)" hype that always precedes these bailouts - of course they will, sooner or later, and in some form or another.
Yea, I'm sticking with my previous statement: the ECB will continue to inflate whenever and however much is necessary to keep the banks and governments solvent, and the EU together.
Three options for Spain (and all the others, in due time): 1) the Spanish pull a rabit out of a hat and somehow manage to contain their debt problems themselves (for now), 2) the ECB runs some scheme to either bail out the Spanish banks or the Spanish government (which in turn bails out the banks), or 3) the EU goes around the ECB and does its own bailout via the EFSF or some other alphabet soup debt mutualization scheme.
The simple problem with your theory is the fact that the ECB cannot act independently like the Fed can. The fed just needs to go in a room with Timmy and they work out some numbers and get it done. Just like Hank did in '07-'08. The ECB has to get permission from several countries. Germany is not going to let the ECB print money, bail out Spain, and put the German people on the hook for the debt. The politicians may try but the people won't stand for it for long. The EU has too much red tape to get anything done in time. This is about to spiral out of control and they won't be able to stop it. Confidence is eroding fast and once it goes it will be like Hoover dam letting go. Better get out of the way because there will be no stopping the flood.
Quit trying to over simplify with the "print" crap. We have been hearing that for months. Where is it? What are they waiting for? Is this somehow going away on its own? If they wait a little longer will the problem possibly fix itself? What's with the wait? If it is all that can be done, why not do it now? If they see the problem and this is the ONLY fix why aren't they doing it? Because they know it will not work, they probably can't get it done in time anyway, and the next time they print, it will push this thing over the edge for sure. So they can print now (just shoot themselves in the head) or they can wait for the end to come in its own time. They don't have the guts to do the former so we will wait for the end, and it appears to be near.
Truer words have not been spoken. Thanks.
BTFD you chicken littles, this is Ben's market, and it won't go down.
Hmmm... I wonder if we're about to see the beginning of real capital flight...
GS may finally be right. It appears Spain has hit the wall which means the whole house of cards crumbles shortly thereafter.
oh give it up already..you have been preaching doom for 3 yrs and if you are short you would be bankrupt..is the euro going to fail yes..but not in 2 months more likely it will be a 2 yr event.. first greece will leave then spain and portugal.. then when itlay is on the verge the germans will just give up on it and bring back the dmark
There is value to the stats.
You assume an orderly collapse. This excludes the human element. Big time mistake.
When the system does go, in two months or two years, it will be unorganized and a mess. That's how chaos works.
Exactly, BandGap , that's the bit that most people fail to grasp! It's all about psychology.
This won't be fundamentals slowly enforcing themselves on the market ... this will be panic amongst the sheeples. And, once they start to panic, it will spread like wildfire. As soon as the idea, that fiat money has no intrinsic value, becomes obvious to the unawake you can start packing up the tables and switching off the lights. The panic will be global and FAST!
It won't be like dominoes falling because they fall linearly ... it'll be way faster because panic spreads in 360 degrees.
I have to disagree with you.
I agree Ghram is an annoying, unimaginative shrill that is simply repeating what little he understands from the ZH posts that are now 3 WEEKS OLD.
I disagree that beaing short over the last 3 years has been a death sentance. If you shorted the MARKET going into the summer of 2010 - you are ABOUT flat. If you have been selective with your timing, position sizes and sector/company selections you are potentially up BIG.
When the SPX is at 1,400 I take my triple levered short ETF position to about $3mm. Around 1,200 I take it to 0 (and I BOUGHT triple levered long ETFs around 1,100). Right now I'm right at $2mm (SPX 1,316) of TZA, VXX, SMDD and FAZ.
Also while the market rallied from 1,100 to 1,400 sector performance deltas were huge. AAPL drove 1/3rd of the rally in the SPX, so being short small and mid-caps helped. Also energy, and comnmodities significantly underperformed. OSX was 300 in April 2011, its 204 today. Nat gas names are down 75%.
graham is the biggest joke here on ZH. he makes a broken clock look like accurate timekeeping. graham is legendary.
The big reset is coming. It is not a matter of if, but when. Overheating the printing presses, obscuring liabilities, and pumping the news outlets will do little more than delay the inevitable economic day of reckoning. The wealth of the masses and nations will vaporize. I may get to involuntarily retire after all!
Broken record more like it. By Christmas the can will still be rolling down the road.
Ah... ah... ah... Brusca!! <wipes face>
Excuse me.
No I think you're wrong. I think he's been right about stuff.
Oh yes, the infamous "stuff" call.
Forgot about that one. . .
for the cargo cultists....
Your little report will do JACK SHIT to mitigate what is coming.
Digiman, why don't you enlighten us as to your vision of the future? I am always interested in prognostication especially doomer pron..
we can only mitigate against the TOTAL FAILURE of Bankers and Govts by taking individual actions, not collective ones
I've dug a hole in the sand to bury my head in with popcorn at the bottom for chews
LOL - very good
laughing twice helps get the stress out
LOL - very good
Stick yore head 'tween yore legs and kiss yore ass goodbye!
Yes, its coming...