The Zombie Banks are crashing around the world today with news of the Dubai World default on $80B in debt owed mostly to the large, multi-national banks.

http://business.timesonline.co.uk/tol/business/markets/article6933664.ece

This Dubai World default is NOT a stand alone instance. There are hundreds if not thousands of large sovereign institutions/nations on the brink of default.. especially in Eastern Europe not to mention almost all the US State governments.

The banks are still leveraged to the hilt (many over 20x) so for every $10B loss in asset value the banks lose $200B. Leverage is great when asset prices are rising but a @#$%&! when they fall. I expect to see a few of the “Too Big To Fail” banks fall in one of the FDIC’s “Friday Night Bank Closure Parties”. If not this weekend then one very soon.

In the mean time… who holds your money? If your answer is “the bank does” then you have an urgent problem that needs to be addressed immediately.

Make no mistake. WE ARE THERE…

- goldstandard

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• Easy money is gone for the likes of GS, JPM, MS, and Citi as far as proprietary trading is concerned.
• The U.S economy has become more exposed and fragile.
• S&P500 will hit 700 in 10 months or sooner.

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