Contagion Is In The Air, European Banks Suffer

Deutsche Bank has warned the markets that bail-ins will only hurt the economy more. This announcement shocked the world and has been an utter and complete change from their past rhetoric, in which banksters around the world have called for more and more quantitative easing (QE), wishing to remain perpetually drunk off easy .

Yet, the industry is waking up and starting to realize what precious metals proponents have known since this crisis began. Easy money is not the solution, but in fact the cause of our current woes.

are slowly beginning to change their tune, and going as far as to admit that they have been wrong all these years. Perhaps their common sense is starting to take hold for a change, and the overwhelming influence of greed is being pushed back. This latter point is unlikely—what is more likely is that self-preservation is kicking in, a natural instinct that cannot be ignored.

They know that the world is once again entering into a period of extreme uncertainty, and that a great crash could be looming over the markets, just waiting for a spark to set it aflame.

Already the pain is being felt by the banking industry, especially in Europe, where the bureaucrats have released new “bail-in” regulations—or as I like to call them, “steal your citizens' savings regulations.”

This concern has begun to spread throughout the banking sector, as fear once again is setting in, an emotion that is a sure fire way to kill an industry based on extreme liquidity and lending.

Currently, the European banking sector is down roughly 4.2%, hitting 2012 lows and evaporating profits for shareholders.

Risk is once again on the table and the talk of the banking elite, and they don't like it. Not one bit. Hold onto your hats everyone, this contagion could spread like wildfire and if it does, look out.

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