It’s bad enough that drought-like conditions and rapid population growth have stoked a shortage of water and other vital resources in Ghana, a country that boasts one of the fastest growing economies on Earth (if it is still poor). But a banking crisis is just now roiling the country’s economy, and has wiped out $1.6 billion.
The run left investment companies holding too any illiquid assets – unlisted bonds, private debt placements etc. – and now securities regulators in Ghana are trying to figure out who broke what securities laws, and to what degree. Even the SEC has gotten involved.
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What would you do if a long term bank holiday was declared? Ghana’s paltry $1.6 billion is nothing compared to Deutsche Bank’s $49 trillion derivative exposure. If Deutsche Bank fails, so do at least 3 major TBTF US banks. I understand that most people cannot grasp the tenuous situation of the world’s banks due to the large amount of money involved. For a better perspective, the amount of money involved with Deutsche Bank is 30,625 times larger than the money involved in Ghana.
If you cannot grasp the exponential difference, at least get your money out of the banks and into a mattress or gold.
David DeGerolamo
It comes…