Posted on 08/09/2016 7:06:46 PM PDT by MarchonDC09122009
http://www.express.co.uk/news/world/698305/Deutsche-Bank-financial-crisis-EU-Angela-Merkel
'We should nationalise German banks' Warning Deutsche Bank teetering on edge of CRISIS
A TOP economist has warned that Germany's biggest bank is teetering on the edge of crisis and they only way to protect it against future shocks is to nationalise it.
By SIMON OSBORNE 20:03, Tue, Aug 9, 2016 | UPDATED: 21:00, Tue, Aug 9, 2016
Germany central bank, the Deutsche Bank, would be hit hard in a new financial crisis
Martin Hellwig said stress tests carried out by the European Central Bank revealed the Deutsche Bank would be left in a precarious position in the event of another financial crisis.
While it would probably not go bust in a fresh downturn - he predicted the bank which is crucial to the German economy would face serious equity problems.
He said: "Putting it short: for a long and serious crisis there simply wouldn't be enough money."
I THINK American banks have a lot more cash on hand this time, but I dont know how YUGE they are taking it on the chin from bad fracking loans.
The Germans better oil up their wheelbarrows
Mr Hellwig, director of the Max Planck Institute for Research on Collective Goods, backed the idea of using taxpayers’ money to fund public sector investment.
He said: “Turning banks into community property through public funds is not only possible but also necessary.
“If a bank is no longer able to help itself, the federal government should take on shares and exercise the related control functions.”
The comments come after last month struggling Deutsche Bank closed down almost 200 branches and is set to cut almost 3,000 jobs.
Financial expert Max Keiser recently claimed Germany’s largest bank is “technically insolvent” and runs a “ponzi scheme”.
He said: “The bank needs to go out of business, because they are not solvent. But politicians, including Schaeuble, allow for financial engineering products to come onto the market that mask insolvency.
“It’s dead, it’s insolvent, the bank is dead... This is a dead bank walking.”
Think soros shorted it
oops
TBTF, PPT man your battle stations.
A bit frightening. DB is pretty big
Looks like a majority of their branches in the U.S. are in Florida, North Carolina and California. Would think they wouldn’t be heavily invested in fracking loans in those states. Understand a few banks in Texas are really hurting because of fracking loans though. As goes oil, so does Texas!
Once one of these European major banks goes, it will spread pretty rapidly.
Money is already fleeing Europe - much coming here into our real estate markets, but also into collectibles that are not taxed.
This will strengthen the US dollar for a while, but eventually, it will hurt us dramatically.
Be wise while you can.
German banks in crisis is not good. Not good at all.
Whoa! That man is serious.
Calamity awaits Europe.
They’re leveraged around 40x. That’s a!ot of counterparty risk sitting out there.
Thanks for that info.
Do you or anyone else know how badly they’re leveraged in comparison to other major central banks?
It seems like none of the financial fundamental matters any more, since Gov’t Plunge Protection Teams stand ready with unlimited Printing Press money, to bail out reckless banks, at the expense of taxpayers.
How I’d love to know what’s in the play book, without getting off’ed.
Maybe this has something to do with events to come:
2016 Economist tease of things to come:
http://www.roadtoroota.com/public/Economist_2016.cfm
*Note Merkel / German is featured prominently front center.
1988 Economist cover depicts one world currency by 2018:
https://socioecohistory.wordpress.com/2014/07/26/flashback-1988-get-ready-for-a-world-currency-by-2018%E2%80%B3-the-economist-magazine/
RE: “They’re leveraged around 40x. That’s a!ot of counterparty risk sitting out there.”
The Marxist answer to every problem - nationalize.
curious which “collectibles” your referring to..... accounting or physical?
Physical - rare coins, stamps, etc. things non-digital that are “off the grid” - not tracked or taxed.
Governments are desperate for money and money in banks is at risk of bail ins or a lightening wealth tax seizures.
The next 2-3 years will see real drama.
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