European banks were on the brink of default in July 2010 and were saved by Germany injecting money into the system. In fact, printing euros. They underwent American style stress tests to regain public confidence and avoid a run like on Lehmann. But hear Strauss-Kahn:
“There is no certainty whatsoever that if a similar crisis occurred, that parliaments would be prepared to cough up billions to save the financial system [...] Are taxpayers going to be ready to finance such a thing? It’s uncertain.”In America, the dollar is being devalued, which has improved the balance of payments and is firing up the economy. The banks are strong but the dollar is weak. This may be the window for "exotic" banks from countries with a strong and stable currency to put a foot in the door of the world's financial market. Such as Israel.
I am collecting Bank HaPoalim shares.
2 comments:
I'm afraid this is wishful thinking. If the big nations catch a cold, the small nations will catch pneumonia. Is not the prosperity of Israel export driven? To whom will you export once the West has collapsed? The Chinese have their own software engineers, grow their own oranges.
K
David Ricardo discovered that a nation can prosper even if it is worse in everything relative to its competitors.
And we are certainly not worse than the Chinese.
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