Singapore official discusses ‘uneasy calm’, tells banks to prepare for financial collapase

Well, at least someone gets it.

While just about every other central bank on the planet is giving everyone two thumbs up on the economy, the deputy chair of the Monetary Authority of Singapore (Lim Hng Kiang) said last night at a dinner that “an uneasy calm seems to have settled in markets” and that “we remain in uncharted waters.”


There are a number of ways to judge how safe a bank is. One way is by looking at its liquidity; my preferred metric is to calculate how much cash a bank has on hand as a percentage of customer deposits.


Fed’s Exit Tax on Bonds – Confirms Liquidity Crisis


The greatest threat we have to the financial stability of the entire global economy is the collapse in liquidity. Governments cannot understand that their desperate need for money that has unleashed the worldwide hunt (or shakedown) is producing the greatest collapse in liquidity on a global scale perhaps in modern history. Even just recently, the Federal Reserve Governor Jeremy Stein commented on what has become obvious that the bond market that it is too large and too illiquid. This exposes the entire market structure to a contagion crisis that is capable of seizing up the world economy like never before in history since the 1720s.


[link to armstrongeconomics.com]

So . . . if a senior official presiding over one of the world’s safer banking jurisdictions wants his banks to become even safer, a rational person would certainly wonder– “What do these guys know about the financial system that I don’t?”

They must be expecting the mother of all busts.

[link to www.sovereignman.com]

Last Edited by No Dhimmi on 06/25/2014 03:30 PM