IMF Advisor Robert Shapiro: Prepare for Global Financial Meltdown Within Two to Three Weeks

 The fact that money-industry insiders are finding it in their hearts to tell the truth is actually more frightening than heart-warming, but here we go again: the BBC has interviewed IMF Advisor Robert Shapiro about the pending disaster in the European economy. If they can't get it together, he says, we're looking at a global disaster worse than the one in 2008:

If they cannot address it in a credible way I believe within perhaps two to three weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system. We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world.  

 He then says the wildcard, at least for the United States, lies in credit default swaps, and how vulnerable British banks are to Ireland's debt problem. Either way, it sounds pretty dire. Watch below, via ZeroHedge:


AlterNet / By Julianne Escobedo Shepherd

Posted at October 7, 2011, 3:42am