Every tragedy brings with it a lesson to prevent another tragedy from occurring. Case in point: Spain's banks. In 2011 seven of Spain's banks sinking under the weight of bad debt merged to form Bankia Caja Madrid. Two years later BCM was taken over by the Bank of Spain after posting further losses of 3.3 billion euros.
Sound familiar? Yesterday I told you about the Italian plan to take similar action to create a so-called bad bank to take on all of the bad debt. It didn't work in Spain. It certainly didn't work in the US, in fact such moves brought about the bursting of the housing bubble we're still living with, and I don't give it much of a chance of working in Italy. Keep in mind the Italian plan comes after depositors with accounts of 100,000 euros or more lost everything. The confiscation wasn't enough.
Someone once told me the definition of insanity is to persist in repeating an action with the expectation of a different result. Could this be a possible example of that phenomena?
The Spaniards came up with a different idea. Their idea comes under my heading everything old is new again. The Spanish savings banks are returning to their roots, by growing their pawnshop business according to Santiago Gil, the director of Caja Madrid's pawnshop The Monte de Piedad de Madrid. A recent auction brought in 909,000 euros.
What are they selling? GOLD. The savings banks of Spain are buying and selling gold. Jewelry, coins; it's all gold.
Tell me again why you don't think gold can enhance your wealth?
Learn how gold can protect your hard earned savings.
Take action to convert your paper into gold.
Your future security begins here:
http://www.thismightbeofinterest.com/
After you watch the journey continues here:
Become A Karatbars Affiliate
It's up to you.
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