http://www.infiniteunknown.net/2012/09/04/18-indications-that-europe-has-become-an-economic-black-hole-which-is-going-to-suck-the-life-out-of-the-global-economy/ The man who trades freedom for security does not deserve nor will he ever receive either. - Benjamin Franklin Sat, 18 May 2013 07:03:28 +0000 hourly 1 http://wordpress.org/?v=3.1 http://www.infiniteunknown.net/2012/09/04/18-indications-that-europe-has-become-an-economic-black-hole-which-is-going-to-suck-the-life-out-of-the-global-economy/comment-page-1/#comment-202844 Marilyn Gjerdrum Tue, 04 Sep 2012 15:56:42 +0000 http://www.infiniteunknown.net/?p=58595#comment-202844 Great article. The bank runs are not just occurring in Spain and Greece, they are happening all over the Eurozone. The Guardian has a section on the Eurocrisis which they run live during market hours only......and the picture is far grimmer. In 1929, someone could take $100.00 in cash and open a brokerage account and purchase $190.00 worth of stock on margin......9:1. It all went well until the market started to fall. The margin calls started, and investors ran to the banks to pull out cash to save their portfolios. It didn't take long for the banks to run out of money, and they collapsed. In 1929, our currency was backed with gold, we were the largest lending nation in the world, and the world's largest emerging mfg power. Today, it is the opposite. World standard business practice is to take $100 million and leverage it into $100 billion.......1000:1. It is unsustainable, and will not survive. It is far worse than 1929. Great article. The bank runs are not just occurring in Spain and Greece, they are happening all over the Eurozone. The Guardian has a section on the Eurocrisis which they run live during market hours only……and the picture is far grimmer.
In 1929, someone could take $100.00 in cash and open a brokerage account and purchase $190.00 worth of stock on margin……9:1. It all went well until the market started to fall. The margin calls started, and investors ran to the banks to pull out cash to save their portfolios. It didn’t take long for the banks to run out of money, and they collapsed.
In 1929, our currency was backed with gold, we were the largest lending nation in the world, and the world’s largest emerging mfg power. Today, it is the opposite.
World standard business practice is to take $100 million and leverage it into $100 billion…….1000:1. It is unsustainable, and will not survive. It is far worse than 1929.

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