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.

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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

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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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