Eurozone crisis effect

"Marc Faber : We had a bank failure in 2008 and the financial system in the western world went bankrupt. It was bailed out by governments, but the banks have learnt nothing. This is partly driven by artificially low interest rates and zero deposit rates. The banks continue to speculate on all kinds of products. What happened to UBS in London (where a rogue trader caused huge losses) can happen to any other bank.I have lots of clients and readers of my newsletters, and I don’t know anyone who owns Greek bonds. So why do the banks – particularly French banks — hold Greek bonds and Portuguese bonds and Spanish bonds and Italian bonds? This shows the banks have learnt nothing. There has to be a separation of banking activity. They can have, on one side, investment banking activity – they can call themselves UBS Giant Hedge Fund; on the other side, the banking sector has to be ring-fenced for depositors and made 100 percent safe. They shouldn’t use that to speculate – as is happening at present..."

at http://marcfaberchannel.blogspot.com/2011/10/eurozone-crisis-effect.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MarcFaberBlog+%28Marc+Faber+Blog%29