We sat down with John Rubino for our weekly get together. Heta bank in Austria has perhaps reached the end of the road. The bank, which was bailed out by the Austrian Government in 2008 and is now in need of another bailout but none will be forthcoming. Rather, bondholders and creditors will be paying for the bailout and this will have the effect of triggering the CDS’s (Credit Default Swaps). Will this lead to a series of cascading collapses among banks across the world? That’s the fear among many alternative economists across the globe and only time will tell.
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