Don Coxe - Get Ready, Banks to Collapse in Europe 

Today 40 year veteran, Don Coxe, told King World News “...the amounts involved are at mind-boggling levels,” in terms of what is needed for Europe’s governments and banks. Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also said that European banks, “...have borrowed huge amounts of money, in dollars, under currency swap arrangements,” and “if banks start to go down, we know from 2008, when banks start to crumble, then the whole system falls.” Here is what Coxe had to say about the ongoing crisis: “Well, first of all we’ve got to stop using ‘billions’ because if there is going to be a fund that works, it’s going to have a ‘T’ (for trillions) on it. We are dealing with some very big numbers in the sense that Italy, although it’s not that big of an economy, it’s got the third largest amount of bond debt outstanding.”

I just don’t see where that’s going to come from because the European Central Bank doesn’t have money. The IMF has lined up $450 billion, including about $34 billion from China, but that’s not going to be dispensed if you realize that it would be swallowed up in a matter of weeks, and they would be back for more.

She (Christine Lagard) is not going to drain the IMF’s money. So they are going to say, ‘We don’t want the IMF to become purely a eurozone financing bureau.’ It was set up to handle emerging economies, not submerging, old European economies.

As for the European Stability Fund, that’s about $400 billion, and it’s pretty much spoken for. So I don’t know where this money is going to come from.

If I had to say what will burst the thing, it will be banks that do it. And if banks start to go down, we know from 2008, when banks start to crumble, then the whole system falls. You can postpone the collapse of a government, but you can’t postpone the collapse of a bank if the people are lined up outside and saying, ‘Give me my money.’

                                         ..............................  Don Coxe