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"Core fundamentals are rapidly deteriorating, liquidity has been choked, and recovery rates are in the process of dropping to historic proportions, " Whitney wrote in a note to clients.
FORBES: Banking's Black Hole
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Meanwhile, the core business fundamentals remain weak.
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To be sure, the fundamentals in the core economies, particularly the U.S. and Europe, have deteriorated somewhat, with liquidity at EU banks and demand tightening around the world.
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