“With between 45 and 70 times leverage, plus too big for the country to save, plus $1 quadrillion in derivatives, it is unlikely that the banking system will survive the next few years in its present form.”
I cannot recommend the following article highly enough, especially if you are fairly new to trying to figure this banking mess out. This article was posted on Jesse’s Cafe, as always his articles are classy and prescient and his sidebar is full of good reading. Please note we are starting to see QUADRILLION appear more often. Have we become immune to TRILLION already?
A SHOCKING FALL by Egon von Greyerz – Matterhorn Asset Management
“Paper money eventually returns to its intrinsic value ZERO” - Voltaire 1729
This month we will discuss what is likely to be a major change both in sentiment and in the economy in the next few months. The autumn of 2009 will be full of shocking surprises in the banking sector, in financial markets and in the world economy. The events that we outlined in our previous newsletter, “The Dark Years Are Here” are going to start unfolding. There will also be shocking falls in stock markets, in the dollar and in bond markets. But these falls will create major opportunities for investors which we will also discuss....
A Shocking Fall
by Egon von Greyerz – Matterhorn Asset Management