Ben Bernanke updates America on the status of our economy, interdependence on Europe, and what may ensue if Greece and the rest of the Europe’s sovereign debt and banking issues aren’t resolved in an orderly fashion. (Hint: They won’t be, so get ready for the worst case scenario) :
First it would depend on the conditions of the default. If it were done in a way that was, where there were very substantial firewalls, backstops, protections done in a very orderly and controlled way, then that would be one thing.
If it was disorderly, unplanned and disruptive that’d be a very different matter.
As I said to Congressman Brady, the direct exposures of our banks to Greece are minimal.
If there were a disorderly default, which led to, for example, runs or defaults of other sovereigns or stresses on European banks, it would create a huge amount of financial volatility globally that would have a very substantial impact not only on our financial system, but on our economy. So, it’s a very, very serious risk if that were to happen.
Ben Bernanke, the architect of our economic recovery, just told us that the worst case scenario will have a “substantial impact” on our financial and economic systems. We’re to the point where Mr. Bernanke is now talking about bank runs in Europe, and Congress is concerned of similar situations playing out right here at home.
In his words, not ours, there is a very serious risk to our economy if Europe doesn’t resolve its problems. Based on the non-resolutions for the last two years, you can be assured Europe will not resolve its problems. Greece is going under, it will not be orderly, and all of Europe is going with it.
Mac Slavo Views:
Read by 235 people Date: October 4th, 2011 Website:www.SHTFplan.com
Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.
The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.
SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.