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January 14, 2020 | European Banking Crisis Picking Up Steam

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

The banking crisis in Europe is expanding.  European banks have no liquidity and the negative interest rates have done so much harm to traditional banking in Europe, we are witnessing excessive fees unfolding. HSBC is raising its overdraft rate of 39.9% for UK customers from March 2020. Santander’s latest bank to set a 40% overdraft rate. Savings accounts which were soliciting people at 3% are dropping to 1%.

Clearly, fees are escalating dramatically which what banks are willing to pay is collapsing, The spread between their cost and what they are charging is rising and this also seems to be taking place with the turn in the Economic Confidence Model.

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January 14th, 2020

Posted In: Armstrong Economics

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