IS THE COLLAPSE OF GERMANY'S COMMERZBANK GOING TO TAKE DOWN THE EUROZONE?
In US trading, Commerzbank was worth $8.87 a share on Friday 4th March 2011. By Friday 25th November 2011 you could buy it on the NASDAQ for $1.66. This represents a capital destruction of more than 81% in less than nine months. For the Commerzbank share price to grow back from where it is now to where it was in March 2011 would require a 434% increase in value. This is Germany's second biggest bank after Deutsche Bank. Commerzbank's share price collapse has taken its market capitalisation to an even lower level than was reached during the pan-global banking panic of March 2009.
Is the collapse of Commerzbank going to take down the EuroZone? An implosion of Europe’s €31 trillion Rothschild-poisoned fiat-banking nexus is imminent.
Financial bad news contagion has sparked from the periphery to the EuroZone core in one jump. German Bund yields have risen to 59 basis points above Swedish bonds since the spectacular failure of Germany's latest bond auction on Wednesday 23rd November 2011. On the international markets, German debt has been abruptly demoted below Swiss, Nordic, Japanese and US debt.
French sovereign debt and French banks are about to be trashed by the ratings agencies. The UK Foreign and Commonwealth Office has issued instructions to embassies and consulates requesting contingency planning for extreme scenarios including rioting and social unrest as a result of the collapse of the Euro.
Asian central banks and sovereign wealth funds are spurning the purchase of all EuroZone bonds because they have lost confidence in a politically impotent monetary system with no lender of last resort, no coherent form of government, and no respect for the rule of law.
There is little doubt, now, that the EuroZone is out of control, and beyond the powers of politicians, bankers or shadow government financial technocrats to save it. The Euro is yesterday's bad idea currency. More here (28.11.11), here (27.11.11), here (27.11.11) and here (25.11.11).