“Bigger Systemic Risk” Now Than 2008 - Bank of England

Sam Woods’s speech last week suggest that banks and building societies are most likely unconcerned with the risk these new borrowers bring to the system.


In May, the British households borrowed £1.7 billion in May, higher than the £1.4 billion that forecasters expected and the £1.438 billion borrowed in April. This rapid growth of consumer credit will pose a risk to banks when the economy falters and borrowers struggle to repay the loans.


Conclusion


These warnings from the Bank of England and the PRA just serve to remind us that there is little in the financial system which is not exposed to the highly speculative and risky lending practices of those charged with looking after our savings and investments.


Even if some banks are listening to the warning cry of the regulators, the level of debt in the financial system in the UK and most western countries is completely unsustainable.


Ultimately all of the above means that your personal finances and your savings held in deposit accounts are at risk. The risk is that when authorities move to bailout the next bank who enjoyed the punch a bit too much, your savings may be confiscated in bank deposit bail-ins.


Why do we like physical gold and silver? Because when you buy it in the right way, you own it outright.


When you own physical gold and silver coins and bars which is allocated, segregated and in your name, it cannot suffer a 'haircut' or be confiscated by bankrupted financial entities. Bullion coins and bars are yours and carry no counter party risk if you take insured delivery or store in the safest vaults in the world.


Protecting-Your-Savings-In-The-Coming-Bail-In-EraAccess Bail-in Guide


 


Sources


Credit market a bigger systemic risk than during 2008 crisis: BOE - Reuters


Bank tackles lenders balance sheet trickery - FT Adviser


Related Content


“Financial Crisis” In 2017 Or By End Of 2018 – Prepare Now


UK At ‘Edge of Worst House Price Collapse Since 1990s’


UK Inflation is no longer in stealth mode


 



  

News and Commentary


Gold inches up as prospects for slower U.S. rate hikes weigh on dollar (Reuters.com)


Gold marks highest settlement of the month, up 1.5% for the week (MarketWatch.com)


Asia shares rise on accommodative Fed (Reuters.com)


Dollar Bears’ Case Grows Stronger as Wagers on Fed Hikes Fade (Bloomberg.com)


ECB Expected to Use July Decision to Quell Investors’ Taper Temper (Bloomberg.com)



Gold and Silver Gain Over 1% and 2% on the Week (SilverSeek.com)


Speculators Sour On Gold And silver, Which Means The Bottom Is Near (DollarCollapse.com)


Hedge Funds Are Losing Faith in Precious Metals (Bloomberg.com)


Financial-Crisis-Style Carmageddon Descends on Houston (WolfStreet.com)


Chinese Silk Road Advances - Purchases Ports Worth $20B In Year (FT.com)


Gold Prices (LBMA AM)


17 Jul: USD 1,229.85, GBP 940.71 & EUR 1,074.03 per ounce
14 Jul: USD 1,218.95, GBP 940.54 & EUR 1,067.92 per ounce
13 Jul: USD 1,221.40, GBP 944.51 & EUR 1,071.05 per ounce
12 Jul: USD 1,219.40, GBP 947.60 & EUR 1,064.29 per ounce
11 Jul: USD 1,211.90, GBP 938.98 & EUR 1,063.68 per ounce
10 Jul: USD 1,207.55, GBP 938.63 & EUR 1,060.11 per ounce
07 Jul: USD 1,220.40, GBP 944.47 & EUR 1,068.95 per ounce


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