Matterhorn Asset Management

IS THE BANKING SYSTEM
A HOUSE OF CARDS?
by Egon von Greyerz
The answer to the above question is an unequivocal YES! We have for a long time warned investors of the fragility of the banking system due to the combination of the unmanageable mountain of OTC (over the counter) derivatives totalling $ 525 trillion combined with reckless lending in mortgage loans, personal credit, credit cards, car loans as well as too aggressive commercial lending both in real estate and private equity. Without the rescue of Bear Stearns we would have had a systemic crisis with catastrophic consequences for the world economy. But in the short term the Fed (and other central banks)
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