Today billionaire Eric Sprott told King World News that Europeans have now lost confidence in both the banking system and the sovereigns. Sprott, who is Chairman of Sprott Asset Management, also warned the global economy is now rolling over and investors need to be prepared. Here is what Sprott had to say about the situation: “The Ponzi scheme in the financial world continues. Month after month there is a new technique for trying to prevent the dominos from falling. We see that people are doing the logical thing, they are taking money out of the banking system.”
Eric Sprott continues:
“Of course the biggest example, recently, is Spain, where they took $65 billion out of the banks in the last reported month. That’s why we had to have the LTRO, which provided over one trillion to European banks because people are taking their money out. We already know the banks can’t fund the deposit withdrawals and therefore have to borrow from the ECB.
They’ve (Europe’s citizens) lost confidence in one, the banking system, and two, the sovereigns….