Dexia crashing

Belgium’s Dexia bank just failed.  Dexia is the largest bank in Belgium and has assets greater than the GNP of Belgium.  And it failed last week.

It was also was the world’s largest lender to municipal governments in the U.S. and
overseas.  So US municipal governments will have a harder time getting financing.  It is the biggest bank failure since the debt crisis started in 2008.  It passed an official EU “stress test” just 3 months ago.  Just like the same stress test that was applied to other even bigger European banks in other European countries.  Its crashing was caused by run on the bank, not by customers, but by institutional investors and other big banks, the same investors that nearly every large European bank depends on for the majority of their  funding.

And the same funding sources that are capitalizing a majority of the assets of some of the largest US banks.

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About drrik

3rd career and 2nd childhood. Spends spare time repairing old things. Aspires to burn more gasoline, gunpowder, and ink in pursuit of slowing down. Child of the 60s and aspiring student of history. No desire to see us repeat the failed social experiments that keep failing for lack of human beings that meet the left wing standards and have to be killed off. Did engineering long enough to realize that very little is new and the wheel does not need to be reinvented.
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4 Responses to Dexia crashing

  1. Mrs. AL says:

    The dominoes are falling. How long before we crash here in the U.S.of A.?!

  2. CW says:

    That’s an eye-opening post! Why isn’t this front-page news?

  3. drrik says:

    Because the front pages are in the pocket of the lib/progs?
    Because there are no more real journalists?
    Because the newspapers are so caught up with other distractions that they can’t keep up?
    Because it’s important not to alarm the bitter clingers until the last minute?
    Because the politicians are still waiting for an “and then something magical happens” moment?
    Because Bernanke has a secret plan that will keep it all together that the insiders know about?
    Am I close?

  4. drrik says:

    Mrs. Al;
    I’m guessing sometime between now and 11/2/12

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