Half of the Worlds Banks Too Weak to Survive Downturn

When the global financial system nearly collapsed in the 2007-2009 Great Recession, nothing was ever really fixed.  The central banks of the world responded by lowering interest rates to 0% in hopes of spurring consumers to continue buying.  They also created trillions of dollars out of thin air and called it Quantitative Easing.  Remember QE1, QE2, etc....?

If wealth could actually be created simply by creating paper money and/or zeroes on a column of numbers at the Federal Reserve, there would be no poor people in the entire world!  Governments could just print all the money they need and pay for free college, free housing, free health care, free cars and trucks.  Do you need some more money?  No problem!  Just ask your local government and they will give you all that you need.

Of course, that's ridiculous.  If money was easy to come by, it would cease to hold any value.

Sadly, it would appear that that's exactly what has been going on for the last 100 years that the Federal Reserve has been in existence.  The value of the dollar has been depreciated by some 95%.

When the next calamity comes around, and it certainly will, will the banks of the world be able to weather the storm?

A new survey from consultancy McKinsey & Co has found that a majority of banks globally may not be economically viable because their returns on equity aren’t keeping pace with costs.

The study looked at 1,000 banks in developed and emerging countries and found that just over a third had made a return on capital of just 1.6 percent over the past three years. This compares to returns of just over 17 percent for top banks over the same period.

"Nearly 35 percent of banks globally are both sub-scale and suffer from operating in unfavorable markets", as well as having flawed business models, said McKinsey.

It added that "to survive a downturn, merging with similar banks may be the only option, if a full reinvention is not feasible."

According to the report, banks are not as well-prepared for a downturn as they were when the global financial crisis erupted in 2007 in terms of profitability.

"While the jury is still out on whether the current market uncertainty will result in an imminent recession or a prolonged period of slow growth, the fact is that growth has slowed," McKinsey said.

"This is likely the last pit stop in this cycle for banks to rapidly reinvent business models and scale up via acquisitions,” the consulting firm said, adding: "The time for bold and critical moves is now."

https://www.rt.com/business/471496-banks-weak-to-survive/

Bible readers know that America is not mentioned anywhere in prophecy.  We also know that the Antichrist will sit at the head of a brand new financial system.  One that requires a mark on your hand or forehead in order to buy or sell anything.

This article makes us wonder if we are in the very last days of the current global financial system.

And if the Antichrist is close to coming on scene...how much closer are we to hearing the trumpet and a loud shout that tells all followers of Christ to COME UP HERE!