European Banking System: Money Mornings 5 Steps To Avoid The Implosion

Baltimore, MD (PRWEB) August 31, 2011

The worst-case scenario for the European banking system is now a reality, says global market expert Keith Fitz-Gerald.

Somebody is having liquidity trouble. An unnamed European bank cant obtain the money it needs from the sale of assets – and it just borrowed a giant chunk of change from the lender of last resort, according to Reuters.

The European Central Bank (ECB) last week lent $ 500 million dollars to an undisclosed Eurozone bank through a credit mechanism that lay dormant for the past 12 months, with the exception of one $ 70 million draw in February.

In fact, Keith warned Money Morning readers just a few weeks ago that the Eurozone could have its own American International Group Inc. – or worse, its own Lehman Bros. Holdings Inc. – lurking somewhere in the shadows.

But this new turn of events has certainly surprised the heck out of rosy-eyed analysts and government officials, alike, according to new information at Money Morning.

Stocks in the United States and around the world have taken a brutal beating this week. Global traders are moving quickly to liquidate holdings and raise cash before the European Central Banking System cracks wide open and a new cataclysm hits the markets, says Keith.

And the U.S. Federal Reserve is already engaging in damage control. President of the Federal Reserve Bank of New York William Dudley has said the risks of a double-dip recession are “quite low,” despite anemic growth.

But really, who are they kidding?

This crisis has nothing to do with liquidity and everything to do with solvency, Keith says, and the risks of a global recession are mounting by the minute.

But investors dont have to suffer the fall out when the European Central Bank system explodes all over the global markets.

According to Keith, there are five steps all investors should take to protect their wealth before the European Central Banking system starts its final countdown.

Learn the five steps to take right now in a new story from Money Morning, The European Banking System Is Finally On The Verge Of Collapse.

Money provides valuable investment research and analysis to its more than 650,000 readers everyday. Its market and industry experts offer unique insights on new market trends and little-known companies and industries, while showing readers the truth behind todays biggest news stories.

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