Elephant in Room – HSBC Capital Hole, Global Fiscal Crisis & Nigel Farage

By | January 16, 2014



Ignoring the giant elephant in the room is now becoming very difficult to avoid or neglect !!! Although the Central bankers , politicians and the vast majority of the ‘Main Stream Media’ do an amazing job of pleading ignorance, mis-direction, no really it’s ok everyone !!!!


HSBC faces £70bn capital hole, warn Hong Kong analysts

via the UK Telegraph newspaper, it reports….

HSBC could have overstated its assets by more than £50bn and ultimately need a capital injection of close to £70bn before the end of this decade, according to an incendiary report published by a Hong Kong-based research firm

Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

or this, as the Telegraph reports….

‘Fatal spiral’ of fiscal crises threatens global economy in 2014

Fiscal crises triggered by ballooning debt levels in advanced economies pose the biggest threat to the global economy in 2014, a report by the World Economic Forum has warned.

Ahead of next week’s WEF annual meeting in Davos, Switzerland, the forum’s annual assessment of global dangers said high levels of debt in advanced economies, including Japan and America, could lead to an investor backlash………

I have personally written about this many times since 2007, but it’s ever so nice to know that the World Bank , BIS and World Economic Forum have now honestly admitted that they have finally spotted that elusive 5 ton giant elephant in the room. I know, I know these enormous elephants blend in so well standing next to your soft living room furnishings.

A I stated recently in one of my posts “It’s the Debt Stupid !”……….

An economy cannot sustain a future of positive Economic Growth patterns and Employment opportunities for the newer generations if the economy is saddled with debt or to be slightly more explicit “totally insolvent”. The debt servicing makes any growth patterns or a normalization of the economy (contrasting to the last 30 to 40 years) basically impossible.

Speaking to many individuals over the last few years, they really do not appreciate the situation we find ourselves in looking at the bigger picture and taking into consideration historical precedents. When asked what caused this crisis they always state the housing crisis of the USA (CDS’s, MBS etc..). That is not strictly true ! The housing crisis was only a symptom of the disease and simply the first domino to fall; the disease itself is our Debt Insolvency and that is ongoing.

And just to make you smile and answer your question “is anyone standing up and saying how it really is in the Government and public arena ?”

Must watch : Nigel Farage lambasts the new Greek Prime Minister….

…And you come here Mr Samaras and you tell us that you represent the sovereign will of the Greek people? Well, I’m sorry, but you’re not in charge of Greece, and I suggest you rename and rebrand your party – it’s called ‘New Democracy’, I suggest you call it ‘No Democracy’.


Stay awake everyone and stay tuned, lot more coming this weekend.

Mitch  - Silver Sufferer

One thought on “Elephant in Room – HSBC Capital Hole, Global Fiscal Crisis & Nigel Farage

  1. Carlos

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