Investors Fear Collapse Of Major European Bank

European banks could experience heavy troubles in the months ahead and a Lehman Brother-like collapse of a major European bank can trigger financial crisis comparable to the one that hit the United States in 2008. Financial guru George Soros warned that Europe’s continuing debt crisis could inflict more damage than expected while the crisis would hit also American and Asian markets and spread all over the world.

European Bank Collapse

New York University economist Nouriel Roubini has also urged investors to be careful as “the perfect storm” nears and would strike the market sooner than later. His initial forecast was that a new European financial crisis that will turn global is going to happen in 2013 but revised his estimates citing an earlier date. Weak U.S. economy and similar negative developments in the United Kingdom and euro zone are to blame for the nearing financial crisis, according to him.

International Monetary Fund head Christine Lagarde said for her part acknowledged the euro zone has entered into a dangerous new phase where the euro zone, instead of its periphery, is experiencing financial troubles. She called on European leaders to adopt urgent measures to prevent a future financial crisis that is knocking on the door and could cause massive wave of bailouts across Europe.

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