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Morgan Stanley to predict bank run after December 9, 2011

Posted: 02 Dec 2011, 09:34
by bailouts4ever
In their latest analysis “Europe in the Balance” Morgan Stanley conclude that December 9, 2011 will be Dooms Day for Europe sparking an uncontrollable bank run if politicians continue following the wrong path. Star analyst and crisis prophet Arnaud Marès forecasts: “Should they fail to deliver a credible framework … we would expect that the ongoing ‘run’ on governments and banks will accelerate, and it is seriously to be feared that it can no longer be stopped.

It is further pointed out that a run as “a self-fulfilling spiral of destruction of confidence” is already happening. Marès concludes that the run has been intensified by talks about countries leaving the Eurozone. Savers and investors in Greece, Spain or Italy are questioning the fungibility of their Euro debts against currency which sparks a further destruction of confidence and pushes investors to withdraw their deposits moving them offshore or into real values.

The only way to end this downward facing spiral is that on December 9, 2011 European governments opt for a new European control and funding system and initialize a European federation. Failure to do so, according to Marès will inevitably lead to the end of the European confederation.

We all together have long understood that summit after summit, emergency meeting after emergency meeting, speech after speech we could expect less of a solution to the problem. It is now interesting to see how much pathos is suddenly being used when expressing necessities and expectations from the coming summit.

While we all agree that some step will inevitably lead to a solution of this mess (one way or the other), it is also clearly visible that for the Marès analysis the wish was father to the thought. While the facts oppose his views, he still wants to believe that swift action can lead to a solution, he wants to believe that this crisis can be solved with some balanced adjustments and in the end he wants to believe governments are still in charge.

In the end we will see that it is the market that solves the problem, not politics. While the market though does not avoid mistakes being made, it harshly punishes them.

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