/biz/ - Business & Finance

>>18811975
yes and that's the reason why others want out. italy will never recover with euro as currency. NEVER and they know it

how long until banks are failing?

how much longer will they last?

2/2

>once their capital is shrinking they won't be able to lend out as much money to all of the zombie companies that are still alive because of the negative interest rates
>if a few zombie companies will thus default since they need a lot of credit to stay afloat banks will make even more losses because they have to write off their money, thus creating a domino effect that takes down most banks, all zombie companies (somewhat around 15% of the european economy) and some profitable businesses too
>this will create a lot of deflation in the short term
>the european central bank will react by trying to save those banks with printed money
>the result will be runaway inflation and a collapse of the Euro

Do you think he's right? Do you think he's wrong? Why?
The things that made me wonder: how are japanese banks still alive after 20 years of zero interest rates?
And couldn't the EU react by allowing banks to give out loans without any capital backing it up?
Also anons in the eurozone, how do you position yourself for such a case?