The international Banking system will never collapse entirely. The US might and the EU may as well but the whole worlds banking systems will never collapse.
Essentially I expect the US banking system to fall apart during the next President's terms in office either within his first term or second. This will happen because the US will reach its debt ceiling and it will be forced to pay back its debts. The only way the US can pay back its debts is by reducing spending, increasing taxes and making drastic changes the American people will not accept! I think once the country begins to go bankrupt that American people will panic and start withdrawing money fast. The countries economic centers will begin to see investments disappear as people try to protect their money. This will no doubt lead to financial troubles for the American banks. If America defaults on its loans the whole system will collapse without a doubt. The US Banking system is a ticking time bomb if the US Government doesn't take action to get out of debt and the banks don't stop frivolous and unnecessary expenditures!
The EU banking system, I think there is a 75% chance that the EuroZone's banks will collapse. Its a matter of when and if the international community allows. The EU has already proven they are incapable of handling their financial problems themselves, reports a few days ago indicate the EU is turning to China to help bail them out. If Greece goes down so will its banks, when Greeces banks go down the EU banks operating in Greece will take substantial hits. The EU banks are already forgiving like 50% of greek debt, but if the whole country collapses the banks will take a heavy blow. But its the chain reaction that will cause the banking system to collapse. As soon as Greece collapses Italian's will rush to withdraw money and pull investments, the Italian banks effected by the greek crisis will then collapse under the pressure as the Italian economy collapses. After Italy , Spain is likely to take a blow collapsing shortly after Italy. But with these three countries the rest of the EU's banks will be brought to their knees. Foreign banks will need to intervene to save the banking system in the Eurozone.
In the end the Eurozone banks will likely collapse as will the US banks. But other countries have very good banks and some wealthier countries will likely rescue some of the key financial institutions. Canada's banks for example are considered some of the strongest in the world. Canada has also fared very well in this financial crisis I would bet Canadian banks will help in some form likely acquiring weak banks or setting up more outlets in foreign countries. In the end the banking Crisis will drag the global economy into the shitter but the banking system will not collapse entirely.
I expect this financial crisis to end with the Euro being scrapped. Once the Eurozone collapses the wealthier European countries will be saved and they will do everything they can to protect their financial well being. China will also likely take over a large amount of banks and as we see right now with the help they are being asked to give the Eurozone knows that Chinese are their best chance at saving a flawed Eurozone!
-JC7
"In God We Trust - In Games We Play " - Joel Reimer










