Will the question of solvency of banks spread internationally?
*The Economist, September 14, 2007:
Banks In Trouble
"A CENTURY ago, the depth of a banking crisis was measured by the
length of the queue outside banks. These days, financial panics are
more likely to be played out through heavy selling in share, bond or
currency markets than old-fashioned bank runs. That makes the sight on
the morning of Friday September 14th of a queue of people waiting
(patiently in most cases) to take their money out of Northern Rock, a
wounded British mortgage bank, all the more extraordinary. A crisis
that started in America’s subprime mortgage market where dodgy loans
were made to unsound borrowers has shaken the world’s financial
capitals since mid-August. Now it has landed on the high street at one
of Britain’s biggest mortgage lenders.
Northern Rock faced the triple ignominy of becoming the first British
lender in 30 years to be granted a bailout by the Bank of England,
losing 29% of its value on the stockmarket, and having to coax savers
not to withdraw their money in a rush."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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