Norwegian banks will not be saved again...

[lucrum]

"Norges Bank" (Bank of Norway) recently ran a stresstest on on 149 Norwegian banks to check their liquidity in times of crisis.

The results are shocking, as this test reveals that 120/149 banks will not withstand another credit crunch if they at the same time experience a loss of about 5% of customer deposits due to bankruns.

The message from Norges Bank is clear: "We will not save these banks again!"

It looks like nothing was learned from the ever so mild credit crunch we experienced.

But that wasn't exactly news, was it?

http://www.dagbladet.no/2009/12/02/nyheter/innenriks/finanskrise/banker/okonomi/9303442/
(No link in english)

[Northern Boy]

I believe that the plan involves closing smaller banks and having them swallowed up by larger ones till there are but 4 or 5 larger banks controlling all transactions

[mntruthseeker]

Exactly what they are doing here. I heard Kerry ask Fulford if he thought the dollar would be ok and both seemed to think it will be alright.

That is confusing as hell. Not that I have all that much to worry about.

[Northern Boy]

the dollar will be fine In America but not the rest of the world it will not be accepted in much the same way Canadian dollars are not accepted in America today and the cost of foreign goods will go thru the roof

[mntruthseeker]

well thats nice to know. I dont plan on spending anywhere else.

What they will do is raise our prices on everything but thats nothing new

Thanks for answering me

[lucrum]

Going to be interesting to see the development of dollar vs. other currencies.

Dollar vs. NOK could quickly leave dollar in the gutter, question is however if Norwegian banks and export industries see this quick enough.

We have politicians that think a devalued dollar won't mean anything for our economy, but I highly disagree. We trade in dollar, we value oil in dollar and pretty much use dollar as a standard in everything. Sure it makes it lucrative for importers to get goods from overseas, but export gonna take a dive very soon.

Add that to the already existing problem of overspending and wierd unemployment figures (generally too low), we may quickly see a steep climb in interest rates and the avalanche of foreclosures that follows.
The banks are doing business as usual, almost lending you money just so you can wipe your behind with them...just for kicks...

Potentially great times for me that does not own a house though, but at the same time sad that my probable luck in the housing market has a price paid by loads of other families.