21 votes

The Portuguese Dominos Begin to Fall - Is Anybody Noticing?

Last week I reported here on the Daily Paul that the holding company of the largest Portuguese Bank had defaulted and that the fourth largest Bulgarian Bank was set to collapse.

The media and market shrugged off these "jitters" characterizing them as isolated and contained.

Then Portuguese Telecom reported that they were out $1 billion because of the Portuguese bank holding company default. This had the effect of them having to take a reduced stake in a merger.

Earlier this afternoon we learned that the holding company of the second largest Portuguese bank had gone bankrupt.

Does anybody really think the bank failures in Portugal and Bulgaria are isolated and contained issues that won't cascade into the global banking system?

The stock market continued to rise today and the gold and silver markets remained depressed in light of the news.

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I missed the MSM nothing to see here piece

Why Bulgarian bank collapse doesn't matter
http://mobile.bloomberg.com/news/2014-06-25/why-failed-bank-...

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Keep in Mind Pending Argentine Default

and of course Argentina seeking ties with China
http://www.skynews.com.au/news/world/asiapacific/2014/07/20/...

lends them $7 billion
http://finance.yahoo.com/news/china-lends-argentina-7-5-0127...

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Counterintuitive

I would expect gold and silver to ascend, not descend. In a crisis people move towards stability.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

But for manipulation

to discourage that mentality and flood towards US Treasuries and the US Dollar http://smaulgld.com/gold-silver-price-manipulation/

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Push price down

Push price down and I will buy more. Destroy my economy and I will flee to another currency regardless, CHF for instance.

So, is Portugal and the ECB worried about a run on the banks?

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

I guess they think because its a holding company and not the

Bank itself there isnt a problem!

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Cyril's picture

"Does anybody really think..."

"Does anybody really think..."

Well, not I.

But "they" are going to continue to delay the time of reckoning as long as possible.

By any and all imaginable means.

We can trust them on that one.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Actually very few think!

They will deny this is an issue until it sinks them
"unforeseen"

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Bump

Yep the dominos are starting to fall