PIMCO's El-Erian Drops The F-Bomb: "French Banks Are Down To 1% Capital, Institutiona

Rasselas

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PIMCO's El-Erian Drops The F-Bomb: "French Banks Are Down To 1% Capital, Institutional Panic Underway"


1% capitalized peeps, on Saturday. You might wake up on Monday very broke.

These banks are collapsing right now, and US banks are vested in them.

It is Oct, and I told all the members that this could be the month.
Your link doesn't work, but I saw this story yesterday and it linked to an FT story. That story didn't say anything of this sort. He does say he thinks Europe is headed for contraction over the next 12 months.
 
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Rasselas

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Here's what I see in another publication, and it's almost the opposite of your Chicken Little thread title:
Policy makers in Europe now understand the severity of the sovereign-debt crisis and the actions that need to be taken, according to Pacific Investment Management Co.’s Mohamed A. El-Erian.

“What I learned in Washington is that Europeans finally get it,” El-Erian, chief executive and co-chief investment officer at the world’s biggest manager of bond funds, said in a radio interview Tuesday on “Bloomberg Surveillance” with Tom Keene and Ken Prewitt. “They recognize they have deep problems and they recognize they need to do something about it. And now they are going back and will try to do something about it. This was a very important wake-up call for Europe.”
Finally, Europe gets it: Pimco | Economy | News | Financial Post
 

michaelr

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Here's what I see in another publication, and it's almost the opposite of your Chicken Little thread title: Finally, Europe gets it: Pimco | Economy | News | Financial Post
Psst. That was last Tuesday, I think the electronic run began on the prior Friday. Do you perhaps think he was trying to prevent the run that HAS occurred? Me do.

1% capitalization spells massive shut down and job losses, let alone the spiral effect on investor banks, you know like those banks that Geithner and Bernanke claim are safe.
 

michaelr

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There were mass protests in Portugal today. The country has been largely left outside of the international media recently

Expect a huge run on Portuguese banks this week.

People there had better be a run on our banks, those trillions that they are paid to hoard will be disappeared one way or another. That's your trillions, got it?!?

It’s not like you can ringfence Greece, or its banks. There are way too many links between countries on the one side and their central and commercial banks on the other. And many more links between all other central and commercial banks on the planet. There's no way just one major bank will go down the abyss. Whoever's first will take down many others.
 

Rasselas

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Psst. That was last Tuesday, I think the electronic run began on the prior Friday. Do you perhaps think he was trying to prevent the run that HAS occurred? Me do.

1% capitalization spells massive shut down and job losses, let alone the spiral effect on investor banks, you know like those banks that Geithner and Bernanke claim are safe.
Psst...your thread title contains a direct quote that doesn't appear to exist. Psst...that makes it 'bullshit.'

The thread isn't about whether there is an 'electronic run' or not--it's someone saying so. Except he doesn't seem to have actually said so.
 

michaelr

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Psst...your thread title contains a direct quote that doesn't appear to exist. Psst...that makes it 'bullshit.'

The thread isn't about whether there is an 'electronic run' or not--it's someone saying so. Except he doesn't seem to have actually said so.
Again your incorrect.

I have it on another thread, the electronic run began over a week ago..

now sorry for the broken link. You show me the quote that isn't correct.

PIMCO's El-Erian Drops The F-Bomb: "French Banks Are Down To 1% Capital, Institutional Panic*Underway" - Home - The Daily Bail

this is from my link...

At the same time, El-Erian noted that the ratio of market capital to total assets for the sector has fallen to 1% to 1.5% — far short of the range of 6% to 8% typically seen for healthier banks.

this here is from Market Watch
At the same time, El-Erian noted that the ratio of market capital to total assets for the sector has fallen to 1% to 1.5% — far short of the range of 6% to 8% typically seen for healthier banks.

“These are all signs of an institutional run on French banks,” he wrote. “If it persists, the banks would have no choice but to de-lever their balance sheets in a very drastic and disorderly fashion.”
link here.... Sovereign-debt
 

Rasselas

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I saw that. Unfortunately, there is no quotation from anyone that uses the word 'panic.' That's hyperbolic conclusion not a quote. It's bad journalism. But no reason not to take an opportunity to hyperventilate.

The quotation from El-Erian was such an important part of the story the writer left that detail to the end of page two.
 

michaelr

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I saw that. Unfortunately, there is no quotation from anyone that uses the word 'panic.' That's hyperbolic conclusion not a quote. It's bad journalism. But no reason not to take an opportunity to hyperventilate.

The quotation from El-Erian was such an important part of the story the writer left that detail to the end of page two.
Oh it's the word 'Panic' that concerns you. Hey if you have a money market and you don't panic, well good freaking luck. As you can see, Portugal is in panic, our TBTF's took a hit, and come Monday morning, there will be other banks in panic. This globalized banking system works when the economy works, the banks invest across international borders, and it can be a good thing. But when central banks and larger international banks fail, it is a nightmare. Our banks, if it were not for Mark to Market are insolvent. The fractional reserve has been increased to a dangerous 40:1, and any stress on these banks from international banks will take capital that the banks can not lose right out of the system, leaving depositors empty handed. Money markets are frequently the first to feel this effect, hell they are a ponzi anyway.

The choice is yours, but anyone telling you to be calm hasn't your interest at heart!

BTW your link is a copy from Bloomberg.
 
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anonymous

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It's a mess over there and you can bet it will have implications over here. Don't ya just love a one world economy?
 
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