CNBC: Banks are preparing for an ‘economic nuclear winter’
The first half of 2016 has been a roller-coaster for financial markets. A combination of uncertainties surrounding the U.K.'s vote to leave the European Union and weaker-than-expected corporate earnings results across the region means a tough second half looms.
European banks, in particular, have had a very tough six months as the shock and volatility around Brexit sent banking stocks south. Major European banks like Deutsche Bank and Credit Suisse saw their shares in free-fall after the referendum's results were announced. In the U.K., RBS was the worst-hit, with its shares plunging by more than 30 percent since June 24.
The current uncertainty over when the U.K. will start the process of quitting the EU has banks on tenterhooks. But a source told CNBC that banks are "preparing for an economic nuclear winter situation."
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Update: Banks getting ready for ‘economic nuclear winter’ (RT)
WNU Editor: It is not only because of Brexit that may cause another crisis in the banking sector. High debt, an incomprehensible monetary policy of low interest rates, a stagnant economy because of high taxes/regulation/etc. .... all of these combined .... or just one .... is more than enough to cause a rerun of the 2008 financial crisis .... or worse.
The so called recovery after 2007/2008 only manifested itself in a manipulated stock market. The central banks, and the governments that enable them are the culprits in this lingering disaster. Brexit is an excuse to deflect the attention of an ignorant public from said culprits.
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