Richter: IMF – Eurozone Banks Are In Trouble, Trample Taxpayers And Democracy To Bail Them Out! (10)

Why is it that 17 nations have to fundamentally reorganize themselves and shift sovereignty away from national parliaments to new layers of transnational, beyond-control bureaucracies that can extract untold wealth from taxpayers—just to save the banks?

That’s what the Eurozone has to do, or else banks will topple, and the monetary union will not be sustainable, according to the “first ever European Union-wide assessment of the soundness and stability of the financial sector,” released Friday by the institution that the world couldn’t do without, the IMF.

“Financial stability has not been assured,” the report stated flatly about the fiasco in the Eurozone, despite ceaseless hope-mongering by Eurocrats and politicians, and banks remain “vulnerable to shocks.” The report, which never mentioned banks or countries by name, discussed a number of “risks” that could topple these banks, with some of these “risks” already having transitioned to reality:

“Declining growth.” Banks with “excessive leverage, risky business models, and an adverse feedback loop with sovereigns and the real economy” are particularly vulnerable. Hence, most banks. A number of European countries have been in a deep recession, some of them for years. So “declining growth” is a reality, and these “shocks” are happening now, said the IMF in its more or less subtle ways.

Further drop in asset prices.” Real estate prices are now dropping in some countries that didn’t see a collapse during the first wave, including France and the Netherlands—where it already took down SNS Reaal, the country’s fourth largest bank [A Taxpayer Revolt Against Bank Bailouts In the Eurozone]. So hurry up and do something, the IMF said.

[More]

See Also:

‘This is theft, pure and simple’: Cyprus bail-out slicing average depositors’ savings up to 10%

Europe Does It Again: Cyprus Depositor Haircut “Bailout” Turns Into Saver “Panic”, Frozen Assets, Bank Runs, Broken ATMs

17 Signs Of A Full-Blown Economic Depression Raging In Southern Europe

The Lost Weekends

Italy’s divided parliament finally elects speakers

Afternoon Update:

12:02 pm EDT, March 18th, 2013 — Cypriot president pitches bank levy as ‘least painful’ option

12:03 pm EDT, March 18th, 2013 — Stock markets highly uneasy over Cyprus tax deal

12:04 pm EDT, March 18th, 2013 — The great EU bank robbery

12:05 pm EDT, March 18th, 2013 — Schaeuble says decision to tax small deposits was taken by Cyprus, European Commission and ECB

Cyprus delays vote on controversial bank deposit levy

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  • Jack

    (Breaking) Cyprus: banks shut till Thursday.

    Updates:

    German Finance Minister Wolfgang Schaeuble is a liar: Cyprus

    ‘Merkel stole our life savings’

    Robbing the poor to pay the rich

    Cyprus banks euro tax bail-out is a small-scale smash-and-grab compared to Britain’s slow-motion bank robbery

    And so it goes. I have so much lined up here I can’t keep up with it and there’s more coming in every minute.

    “Sheesh!”

    I do note however that there may be a bright side for Canada amid all the mayhem. I’ll leave that for the experts to ponder in the days ahead. My “unedjamacated” view is that Canada may just have struck the mother load as threatened EU investors seek a safe haven for their money but I don’t truly know. I’m just guessing.

    What I am certain of is that the EU, in it’s present configuration, is “toast”. They’ve been playing poker with their citizens all these years and finally they inadvertently showed their hand as they tried to pull another “funny” completely in violation of the laws they themselves have passed. Small wonder they are in “deep s**t” this day (and they are). They have lost as they are “called” and that’s no lie.

    To be clear (and in my view) they have lost everything as trust in their banker dreams and public awareness of the continuing lies continue to build almost overnight. They’ll be awhile yet but the bottom line is this:

    ‘If someone lies to you would you ever believe them again?’

    I don’t and firmly believe it’s simple human nature to react that way. Small wonder why the tiny island of Cyprus is so important to the world this day — and it is. The bankers, the “rich”, the monetary thieves, have a huge PR problem facing them this day as they are exposed for all to see.

    I think that a good thing and I wish tiny Cyprus well in the days ahead as their voters revolt and if I’m correct, tear the EU to pieces and start the rebuilding process which, if done properly, will take decades (as it should). I note that the EU as dreamed about was never a bad idea but “haste makes waste” and as we see this day it all comes to a very bad ending which it appears to have done as a bunch of self-appointed “pinheads” in Brussels and elsewhere stole control and continue to violate every law they swore to uphold as they mislead everyone, including their electoral masters.

    Now, all “reap the whirlwind” and in my view correctly so.

    It is a “happening thing”.