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Golden Age

|Includes: BAC, Citigroup Inc. (C), HBC.B
Global View

Recent conflicts in the global economy triggered gold to hit new record levels. Investors are cautious about risks in stock markets and move to safety like Gold.

European debt problems keep growing as no satisfactory answer has come yet. German and French leaders meet to prepare a plan for countries like Greece, Italy, Ireland as well as Spain, and Porteguese. Nowadays, there are some ideas like European bonds legislations, autonomous financial institutions in Europe for economic centralization.

- Stocks are down every week. Investors begin to get Gold, bonds so they are risk averse - No fundamental solution has appeared in EU.

- Banks have risks related to capital inadequacy, credit risk, withdrawal! - Insurance companies are at risk due to expected low interest rate period. Insurance companies will have problems about payments.

FED will keep interest rates low for 2 years. It means that the US economy has many things to recover from the current economic slowdown. Inflation in China, and recovery of Japan also enhance risks in the global economy and cause gold to reach at record levels. Stock markets are in trouble. 

- Financials

- Banks

- Insurance companies

On the other hand, 

- US credit card delinquencies hit record high levels in July - Citi group, HSBC, Bank of America stocks down. Citi Bank and BoA have problems in courts. HSBC has the risk of European debt problems as well as Deutsche Bank.These banks are the leaders that give credits to European countries.

Besides, US regulators now check the risks in US banks related to their subsidiaries in Europe. In fact, there is a decision to downsize of global banks to avoid global risks and the announcements will keep growing in the coming days. Banks and Insurance companies may hit record low levels in stock markets!