Armstrong Economics Blog/Banking Crisis
Re-Posted May 12, 2018 by Martin Armstrong
It was only a question of when, but now those investors who lost 100% of their money in Banco Popular in Spain are filing a lawsuit demanding answers in a court filing in New York seeking information from the purchaser of the stricken bank – Banco Santander who paid just €1 to take over troubled rival Banco Popular. This entire affair demonstrates why European bank shares and bonds are FAR TOO RISKY to own. The government demands that European banks raise capital. However, if you invest in a European bank and there is a problem with more bad loans than expected, they can seize the bank and sell it for even €1 and you have lost all rights to your investment.
I have warned many times, you cannot play around with governments. They can change the law retroactively, do whatever they desire and will NEVER be prosecuted for even outright fraud. They are the Devil and you just cannot reason with power gone crazy.