I have thought for some time that those predicting another recession are overly optimistic.  We are about to see a collapse of the world financial system and there is nothing anyone can do about it.  The banks that were bailed out are still insolvent – zombie banks.

Well IMF adviser Robert Shapiro has said what anyone paying attention knew already.

In an interview with IMF adviser Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone’s mind: “If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system. We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world. This would be a crisis that would be in my view more serious than the crisis in 2008….

Watch it: