March 19, 2008 (LPAC)--The European headquarters of EIR News Service says that a well-placed source admits that Union Bank of Switzerland (UBS) is on the verge of insolvency, with a hole of 150 billion euros in its accounts. UBS is the biggest European bank by assets--at least as of today. UBS has called on a well-known Swiss investment house to come in and bail them out, but this investment house is dragging its feet; a board meeting has been going on since March 18 in an attempt to make a decision.

This source had a long discussion with managers of the investment house, who see “the whole system coming down and are convinced that “rules have to be rewritten". The Weimar hyperinflation precedent was raised; one manager commented that today, the debt volume is higher than in 1923.

Despite this, and the acknowledgement that liquidity injections are no cure, but just a painkiller, Swiss bank officials are still caught up in the mentality of the current system, and their impotent 'solution' is a Central Bank-coordinated bailout intervention. Only facing reality, and going with LaRouche's three point solution, will save the populations of the world from this already collapsed system.