Warning: This Could Be the Start of a Global Banking Crisis

• Warning: This Could Be the Start of a Global Banking Crisis
  by https://www.caseyresearch.com/  
  Europe’s banking system is collapsing.
  Over the past year, shares of Deutsche Bank (DB), Germany’s biggest bank, have plunged 56%. Swiss banking giant Credit Suisse (CS) is down 62% over the same period. Yesterday, both stocks hit record lows.
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  Dozens of other European bank stocks have also crashed. The Euro STOXX Banks, which tracks 48 of Europe’s largest banks, is down 48% over the past year. This is a major issue…
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  That’s because banks are the cornerstone of the financial system. They keep money flowing through the economy. If they’re struggling, it often means the economy is having major problems. Right now, European banks are flashing bright warning signs. That’s not just bad news for Europe—it’s also a serious threat to the rest of the world.
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  In today’s Dispatch, we’ll show you why Europe’s banking crisis could turn into a global banking crisis. You’ll also learn how to transform this threat into a chance to make big gains.
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  • European banks are struggling to make money…
  Spanish banking giant BBVA’s (BBVA) profits fell 54% last quarter. First-quarter profits at Deutsche Bank were down 58%. Swiss bank UBS’s (UBS) profits plunged 64%. 
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  European banks are hurting for a couple reasons. One, Europe is growing at the slowest pace in decades. Banks are making fewer loans as a result.
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  Two, negative interest rates are eating European banks alive.
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  If you’ve been reading the Dispatch, you know negative rates are the latest radical government policy. They basically flip your bank account upside down. Instead of earning interest for keeping money in the bank, you pay the bank to hold your money.
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  Negative rates are clearly bad for savers. They’re also hurting Europe’s biggest banks. That’s because these huge institutions have to pay their “bank,” the European Central Bank (ECB).
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  Today, European banks pay £4 for every £1,000 they store at the ECB for a year. That might not sound like a lot. But it adds up quick when you manage trillions of euros like these banks do.
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  read more.

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