Call to relax Basel banking rules
By Edmund Conway, Economics Editor
Last Updated: 1:13am GMT 16/12/2007
“The Government must suspend a set of key banking regulations at the heart of the current financial crisis or risk seeing the economy spiral towards a future that could “make 1929 look like a walk in the park”, one of Britain’s leading economists has warned.”
According to conservative rules, where they must keep reserves at a ‘whopping’ 8% of deposits, these banks are insolvent unless the reserve requirements are cut. What happens when they can’t cut anymore? What happens when huge investors around the world perceive more risk to their money?
We are on the verge of a meltdown of titanic proportions.
Buy gold and lots of ammo, gents.