Bill Holter of MilesFranklin.com contends the banking system is interconnected and very weak and explains his point by saying, “Look at what happened when the Swiss dropped their peg to the euro. That basically has tanked the Austrian banking system. The Austrian banking system is on the verge of collapse because they lent in Swiss Francs. The strength in the Swiss Franc makes those loans much more difficult to pay back. That’s thrown the entire (Austrian) banking system out of kilter. If you do that with the dollar and you raise rates, and the dollar gets strong or spikes up 5% or 10% overnight, what’s that going to do to banks all over the world? That’s going to create a smoking black hole of derivatives.”
Global Black Hole of Derivatives
by Bill Holter | Apr 6, 2015 | Interviews and Appearances | 2 comments
Great job, Bill. I like the fact that you take your time to provide thorough, thoughtful answers to the questions that are asked.
thank you Matt, I try to “aim” first rather than shoot from the hip.