Rumours that Credit Suisse is on the verge of collapse are doing the rounds of the mainstream media at the moment and the company is remaining tight lipped which is only giving more creedence to the rumours in the eyes of many observers. Credit Suisse saw a sharp rise in the spreads on its credit default swaps on Friday sparking speculation that the Swiss bank was in financial trouble.
It’s predictable that the media is calling this Lehmann Brothers 2, but it does seem as though things are hanging by a thread at the moment and the collapse of a major European bank could be the spark that causes a plunge on global markets.
The Deutsche Bank share price is looking just as bad as Credit Suisse at the moment, and both are tanking worse that they did in 2009.
With the UK economy is on a knife’s edge, endless rate rises stifling economic growth and an ever-deepening war in Ukraine that continues to seem more and more like a quagmire every day, are the cracks finally starting to appear in the global economy?
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