No need to add again that we are at a turning point in history and this turn does not look good at all.
If they do not invent something either a Federal Reserve QE3 an ECB Euro QE1 or an ECB Bond shopping spree we are not going to survive this summer. Needless to say that we are facing a situation potentially 10 times more dangerous than the Financial Crisis of 2008 (trying to be conservative), all the tricks have been used and failed. Latest news on the US banks could unleash a new major banking crisis in the US which would spread to the Derivatives market and at that point either we redesign how the new economy works by banning derivatives or we can say goodbye to the world economy.
All eyes are on Bank of America which today only has been hammered losing in one day 20%, this is turning ugly since at this point Federal Reserve and the US Government could intervene and bailout again Bank of America, aside from the political and public rage this will cause we still don't know if there is enough money to bailout Bank of America and should it default we are going to see an hurricane on the derivatives market and stock exchanges all over the world.
Going back to Europe, if the Daily Mail is correct, Societe Generale and Italy's UniCredit are on the verge of collapse.
Fears are growing this weekend that two of Europe’s largest banks may require a bailout, having been hugely damaged by the worsening crisis across the eurozone.
In France, President Nicolas Sarkozy is having to confront the possibility that the country’s second-biggest bank, Societe Generale -commonly known as SocGen - is on the brink of disaster after huge losses over loans made to Greece.
The chilling possibility of the largest bank in Italy, UniCredit Banca, suffering a similar collapse if a bailout is not implemented comes as Silvio Berlusconi already faces an increasingly dangerous national economic situation.
The irony of all this is that we went into this mess to bailout failing banks back in 2008 and here we are now 3 years later with banks failing again together with those sovereign countries who were so stupid to support them.