Last month I penned the piece Abu Dhabi & the UAE Can Leverage PetroDollar profits to capitalize on the plight of EU nations [4], wherein I announced that I was putting together an initiative to capitalize on the inevitable deleveraging of European (and soon Asian) banks and sovereign (as well as quasi-sovereign) nations. Those institutions and UHNW individuals who are interested in said initiative should click through and read thearticle [4] andcontact me afterward [5]as there has already been significant indications of interest. [4] I already have my analysts going through a plethora of opportunities, identifying hard assets first, and financial assets with deep, deep discounts in mind (100%+ cash on cash return within one year, unlevered).
As fate, and an adherence to viewing things analytically, would have it the opportunities may come to bear sooner than expected - to wit: European Banks Could Deleverage by $2.6 Trillion: IMF [6]
A drastic contraction of European bank balance sheets during the next 18 months could jeopardise financial stability and economic growth, according to the IMF. The FT reports.
This is simply a reiteration of my warnings from as far back as 14 months ago, proffered in explicit detail, simple reference Is Another Banking Crisis Inevitable? [7] (Attention subscribers: The subscription document is available as well The Inevitability of Another Bank Crisis [8])
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Banks NPAs to total loans |
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Source: IMF, Boombust research and analytics |
Euro banks remain weak as compared to their US counterparts
Later on today I will post the first of several documents to professional/insitutional subscribers detailing what I have in mind in this potential asset grab.