Via Investment Research Dynamics
“I don’t think it’s any coincidence that gold runs from $1285 to as high as $1445 around the time that all the news about Deutsche Bank started coming out” [the failure to merge with Commerzbank followed by the “good bank / bad bank” split announcement].
It was reported by Bloomberg that Deutsche Bank clients – mostly hedge funds – are pulling $1 billion in capital per day from the collapsing bank. Still no details have emerged on the how the “bad bank” holding company will be funded or what will go into it. What we do know is the original proposal for a bad bank was for $43 billion in bad assets. That number has bubbled up to a proposed $74 billion. In truth, no one knows for sure the degree to which DB’s derivatives holdings are radioactive. Disgraced former CEO, Anshu Jain, admitted that near the end of his failed tenure.
Deutsche Bank is being prevented from collapsing by the German Government, the Bundesbank and the ECB. That’s been implicitly acknowledged over the last few years that this is case. The attempt to wash Deutsche Bank’s problems through a merger with Commerzbank failed. In 2008/2009, Bear Stearns’ and Wash Mutual’s sins were cleansed through bankruptcy court and through JP Morgan. In the same way, Merrill Lynch’s disastrous balance sheet was cleansed through Bank of America.
The fact that a similar attempt to wash Deutsche’s bad assets using Commerzbank failed should give us an idea of the relative scale of Deutsche Bank’s hidden financial nuclear waste compared to the derivative bombs that detonated in 2008. I guess the money the Fed and U.S. Taxpayers gave Deutsche Bank in 2008 wasn’t enough…
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Deutsche is the starting pistol. It has gone off. The race to the end has officially begun.
The bonfire Deutsche will produce will ultimately scorch the earth.
43 Trillion.
Banks in general scare the shit out of me as an investor. Too much M&A etc. I got out of them before the crash and of course everyone told me I didn’t know what I was talking about-only I did. They didn’t.
DB has been a known dead man walking for ten years. If the financial world has not insulated itself from this known situation I would be surprised. If DB going pfffft starts a meltdown it would be monumental considering a decade plus long warning.
I have to believe anything that happens to DB is baked into the markets.
Black swan? You betcha.
Ripple effect would be enough to trigger another banking crisis.
Ponder…could the ATMs go dark?
Or, be subject to restrictions for withdrawals?
Or that just fear mongering?
Good chess players always think three or four moves ahead, to survive (win) against a powerful foe.
Or, at least have an alternative plan or three, if the game board gets upended, with the pieces littering the scene.
Got a cash stash?
Tell no one.
Got a water, food and ammo stash? Got a KJB?
Yes,yes,yes,NIV. John
Allow me to make an argument for the King James please. Well worth your time. Glad you’re up to speed elsewhere!
Yup.
Yes, without a doubt, and it is overdue.
Yawn
Balz- It is rude to yawn during serious DOOM PORN. WTF? Not sleeping well, not getting any?
he stayed up all night fondling them–
Wake me up in 6 months and tell me how it went.
A better question might be: how could it not?
as long as central banks can print & massive wars are avoided,it will go on–
Non-instant replay of 2008. The fuse was long but not endless. Fake food supplimented by Big Pharm helps a little. The show must go on.
Every Avalanche starts with one piece breaking away.