For five years straight, Central Bank liquidity has papered over ever-growing borrower insolvency. Now liquidity is receding. No one wants to even contemplate how this is all going to end. So no one does.
"What is really important in the world of doublespeak is the ability to lie, whether knowingly or unconsciously, and to get away with it; and the ability to use lies and choose and shape facts selectively, blocking out those that don’t fit an agenda or program"
Alarm Bells In Europe [Aug. 2nd, 2014]
"Private sector lending is dropping sharply in the Eurozone"
"Espirito Santo reported the largest ever corporate loss in the country’s history just last Wednesday"
"European banks have loaned in excess of $3 trillion to emerging markets – a little less than the entire GDP of Germany"
“A handful of large EU banks are materially exposed to more fragile emerging markets.”
"The least well-capitalized banking sector among the larger Eurozone countries is not the Spanish or Italian… but the German, closely followed by the French"
"Spanish, Italian and Portuguese banks increased their holdings of domestic sovereign debt by very significant double digits, mostly financed by the ECB"
"Sovereign debt has reached 90% of GDP (from 65% in 2008), the highest level ever"
Decades of Ponzi Growth have led to one worse decision after another
And you need not expect anyone you meet to believe that the status quo will ever end. They're not the least bit capable of believing it. This has nothing to do with facts and data. This is solely about people's inability to accept that the consumption oriented lifestyle is ending. They are programmed to believe in more, not less. Forget about the 2008 wake up call, I assure you that they already have. Forget that the global economy is deteriorating in real-time. Forget that global debt has grown 40% since 2008. Forget about ghost cities in China, Third World factory exploitation, record wealth inequality, 0% interest rates forever, printing money to buy stocks, mass outsourcing, sovereign ponzi bonds, falsified unemployment data, political incompetence, growing geopolitical unrest. Charts, facts and reality play no part in this fantasy delusion. The average zombie, burned out on their rat race to nowhere, has literally no capacity to even contemplate the end of the status quo. They are well programmed to only believe in more, never less.