April 28, 2009

Told You Banks Were Failing

On Sunday, April 12, this blog published a leak of bank stress test results. Stock markets around the world reacted swiftly, wiping our about $527 Million in bank stock value on the S&P 500 bank index in the USA. Overseas, stock markets analyzed which of their banks could be at risk from U.S. banks, and bank stocks on foreign exchanges dropped too. When it was done, markets around the world watched $2.3 Billion drop out of bank stock values.Then the damage control teams from the government stepped in and started "spinning" the story and assailing its author, Hal Turner. Folks were told "Don't believe Turner"Here we are, 16 days later and low and behold, "official statements" are coming out confirming that two of the top 19 banks -- CitiBank and Bank of America -- are in serious need of more capital to survive. This is why the federal reserve published the methodology of their "stress test" last Friday and announced the results would be given to the general public on May 4; so during the interim, they can leak out the VERY bad news in dribs and drabs.They don't want to cause a panic by simply blurting out that many of the top banks in the country are in technically insolvent. They are.Click Here

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