paddington's bear, donkey and rabbit - tuesday, page-67

Our market is a lot more cautious than what I had expected.

Below is a link to a Martin Weiss article on the European banking crisis and why it will end badly for both Europe and pretty much elsewhere. Apparently the European banking sector is bigger than the US banking sector and more thinly capitalised. A striking fact is that in aggregate the three largest French (population c60 million) banks have more assets (and hence liabilities) than US (population c320 million) based JPMorgan, Citigroup and Bank of America.

http://www.moneyandmarkets.com/7-major-advance-warnings-47579?FIELD9=1

I remember around 2006 reading that Spain's (population c40 million) housing boom was so strong that they were building units/houses at 50% of the level of the US, which was itself undergoing a major housing boom, and thinking this is going to end badly. Well after reading Weiss' article it is pretty clear to me that another major worldwide banking crisis cannot be too far away.

In the long run it looks like European govts will not be able to save their banks, but will probably save (at least to some extent) the depositors, because the task is simply not possible.

I am looking forward to the Merkosy plans in 3 weeks time. I wonder how the clever traders are playing this game - always close to their sell button I suppose.

Warning: Playing in the ASXCasino can be hazardous to your wealth and mental wellbeing.

loki