Fin24

Marcus: Don't discount EU banks crisis

2011-06-30 10:49

Pretoria - The possibility of a systematic banking crisis emanating from Europe cannot be dismissed, South African Reserve Bank governor Gill Marcus said on Thursday.
 
However, Marcus told the Reserve Bank’s ordinary general meeting that there were no obvious threats to domestic financial stability “at this stage”.

The inflation outlook was being adversely affected by higher commodity prices, she added.

While there were signs domestic recovery was becoming more sustained, the recovery in advanced economies had become increasingly uncertain in recent months.

South Africa’s economy posted surprisingly strong quarterly growth of 4.8% in the first three months of this year due to a surge in manufacturing output, data from Statistics South Africa showed last month, suggesting the recovery is gaining momentum.

“The accomodative stance of monetary policy has been maintained, given the relatively hesitant nature of the domestic recovery,” Marcus said.

“There are signs that this recovery is becoming more sustained following the 4.8% annualised growth rate recorded in the first quarter of 2011”.

But Marcus noted that the recovery in developed nations, which had appeared to be more sustained, had become “increasingly uncertain” in recent months.

“While some view this as a soft patch from which countries will emerge fairly soon, there are still significant risks emanating from some peripheral countries in Europe in particular.

“These risks have the potential to derail the already slow recovery in the advanced economies and to have serious negative global repurcussions,” Marcus said.

Comments
  • Bart Zimzon - 2011-06-30 11:33

    South Africa versus Greece: Greece has 400000 gov employees in EXCESS, i.e. they are not needed. Some 1 man jobs are filled with 3 employees, each one comes to work on a rotating base (fixed by themselves). To maintain this folly, the government is draining the Private sector with taxes all over. But that is not enough, the gov. also took out loans, and other loans on top of the loans.... Now the private sector is squeezed out to the limit, loans cannot be repaid...they go for bankruptcy. BUT WAIT, THAT'S NOT ALL, we give you more: an AUSTERITY PLAN !!! free with / after above squeezing. In general, Greeks will earn between 15 and 30% LESS then last year, that is for those who still have a job next year, because with lower economy activity there will be lots of people losing their jobs + private sector bankruptcy. Politicians and BANKS are laughing all the way to the...........yes, bank. And THAT my good people of Saffrica, is where SOUTH AFRICA is heading..... FACT.

  • Max - 2011-06-30 11:36

    Mr Marcus, please open your eyes. The whole "systematic banking crisis" has been planned and executed by the banking cartel, IMF, CFR and the list goes on. Please have a look what recently happened in St Moritz, Switzerland.

      robyn - 2011-06-30 16:03

      its is mrs marcus not mr

  • jabski - 2011-06-30 13:01

    the biggest fraud in history is being perpetrated as we speak. if you are not prepared for it you are fools. it only takes a bit of common sense to work out there is no way out of this folks. once the credit market collapses and the 3 day supermarket supply of food runs out what you going to do? i think the europeans and americans should be more worried than us though. they are f%$^ed!

  • hertzel - 2011-06-30 13:04

    ...the reality is that the Majority makes the Minority wealthy and where ever u are , this is NOT sustainable...It is like a pyramid scheme without ACCOUNTABILITY....see what happening even to the States ....

      Nasdaq7 - 2011-06-30 15:54

      That is absolute nonsense. Technology does a lot of the work making a lot of people wealthy. Tractors, printers, cash registers, copiers, printers, fax machines, shredders, computers, trucks, cars, airplanes, coffee machines, airplanes... any consumer and business can buy it - anyone can get rich from employing technology. 200 million Chinese have been lifted out of poverty since 1960 - their incomes have increased 10 fold since 1960. And you say it is not sustainable. Governments controlling people like robots is not sustainable. A good example is Singapore, that country has had low government interference ( little socialism ) and it is still going strongly. The US posted a $500bn surplus in 2001. And what happened then? Yes. Those without technology attacked those that had a surplus of technology and money - Al Qaeda vs. the US. Then a $2000 billion war started leaving the US in a great financial crisis. Let any country spend $2000bn on war - their economy would be a wreck. If you want to blame someone blame those that want to disrupt successful capitalist countries. Jealous people and religious fanatics. The world economy is linked to the US dollar and that dollar based economy has taken a $2000bn hit - forcing a devaluation of the dollar - and that is causing the turbulence world wide. Capitalist Korea, China, Hong Kong, Singapore, Germany ... are all going strong. Socialist Greece is in trouble.

  • Nico Fourie - 2011-06-30 16:33

    Socialism does not work. weather it is within a democracy or any other format. Work hard and live within your means is the only way. The world debt levels are out of control. People's savings and livelihoods are being diverted and diluted through inflation and towards bad monetary policy. Politicians are robbing the world blind, buying votes through a broken democratic process. History is unfortunately repeating itself through Keynesian economics that are applied. Will we ever go back to Austrian economics? I doubt it.

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