Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
kingworldnews.com / June 20, 2016
With major markets all over the globe on the move, today James Turk not only told King World News that the world is headed for another terrifying collapse, and discussed the scary part regarding why it will be even worse this time around.
James Turk: “It is getting very ugly for the big banks, Eric. The price of many bank shares are in clear downtrends, particularly the European banks. Many of them are being swamped by unsecured loans that will never be repaid and will therefore have to be written-off as total losses…
James Turk continues: “The country in worst shape is probably Italy. The banks there have non-performing loans – which are those that are impaired and not meeting the original borrowing terms – that in the aggregate dwarf total bank equity. Even worse, non-performing loans in Italian banks have risen again over the past year from 17% to 18%. It is hard to imagine that 18% of all loans within that country are non-performing, but the Italian economy is in trouble as evidenced by its 11.7% unemployment rate.
Spain, Portugal and others have growing bad debt problems in their banks too, and we have to recognize that these bad debts may be insurmountable. That’s because the bad debts in many banks are larger than the bank’s capital, so they can’t take these losses because it would wipe out their book equity. In other words, many banks are insolvent because the difference between the true value of their assets and the value at which they are reported on bank balance sheets is in the aggregate greater than the shareholder equity of the bank.
The post The World Is Headed For Another Terrifying Collapse But Here’s The Scary Part appeared first on Silver For The People.
Thanks to BrotherJohnF