Yes sire, the banks have played their cards; and, overplayed their hand; now it’s musical chairs time; in peace
From Sovereign Man, by Simon Black
German newspaper Der Spiegel reported yesterday that the Bavarian Banking Association has recommended that its member banks start stockpiling PHYSICAL CASH.
Europe, of course, has been battling with negative interest rates for quite some time.
What this means is that commercial banks are being charged interest for holding wholesale deposits at the European Central Bank.
In order to generate artificial economic growth, the ECB wants banks to make as many loans as possible, no matter how stupid or idiotic.
They believe that economic growth is simply a function of loans. The more money that’s loaned out, the more the economy will grow.
This is the sort of theory that works really well in an economic textbook. But it doesn’t work so well in a history textbook.
Cheap money encourages risky behavior. It gives banks an incentive to give ‘no money down’…
View original post 427 more words