by Bill Holter, Miles Franklin:
Last week was full of news but the obvious in importance was the news out of Espirito Santo bank of Portugal http://www.chicagotribune.com/business/sns-rt-us-espiritosanto-esfg-20140710,0,5483314.story. This is Portugal’s largest bank and they missed a bond payment, their stock had been halved in the last month prior to being halted for trading. The ripples from this news spilled over throughout Europe as bond yields of weaker credits increased and several scheduled deals were pulled.
This was THE big news of the week which overshadowed almost everything else but should not have because there was so much other important news. Just off the top of my head, Austria’s largest bank reported a 40% increase in bad loans, the head of the central bank of France called for a change in the world’s reserve currency and an end to the petrodollar, the BRICS brought forward a bank to compete with the IMF and World bank, Germany kicked out 2 U.S. spies and told German companies to limit business dealings with U.S. counterparties (they also approved “bail ins”), WalMart admitted that it was not the weather that has torpedoed the economy, bank runs hit Bulgaria 2 weeks after the IMF said that their banks were solid. We also watched as the Israel/Gaza situation heated up with live fire while the borders of the U.S. were thrown wide open. Lots and lots of news but the sheeple slept on.
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