Posted on 11/05/2019 8:26:38 AM PST by LesbianThespianGymnasticMidget
At no point in history has any government ever wanted its people to be defenseless for any good reason ~ nully's son
Nut-job Conspiracy Theory Ping!
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Nov 15th?
Curiouser and curiouser
Just the opposite. To make their capital requirements they have to hold so much cash and so many zero or negative yielding government bonds that they'll never make any money.
When the Eurozone goes into recession, I think they're doomed.
For Germany, Deutsche Bank is Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley rolled into one. It is too big to fail.
For all those thinking Deutsche Bank’s demise won’t affect things in the United States...keep in mind that DB is the counter-party to more derivative contracts than any other bank in the world. While exposures vary, all the major banks in the US have substantial counter party risk if Deutsche Bank goes under.
It won’t be the native Germans that will start & fit it. They’ll either have their heads down or be in detention camps. Their new Middles Eastern immigrant refugee pals will be the ones who sill start something.
Should the worst happen, taxpayers undoubtedly would be asked to fund cleverly constructed guarantees, pledges, facilities or asset-purchase programs in order to prop up Deutsche Bank. It is too big to fail.
And Deutsche Bank’s latest plan proves, yet again, that privatizing gains and socializing losses at too-big-to-fail global banks is alive and well.
https://www.americanbanker.com/opinion/deutsche-bank-shows-it-learned-nothing-from-the-2008-crisis
The European banks were more indebted than the American banks when they were bailed out by TARP in 08. In addition to toxic real estate debts (it was as inflated in most of Europe as in the US), they also had a whole lot of toxic sovereign debt.....just think about all those loans to the PIIGS which will never be paid back - not to mention Italy, France, Belgium, etc.
What they did is simply not recognize the losses. They kept lots of assets on the books that were worthless or nearly so at their book values hoping to slowly bleed the losses out over time. That was always likely to fail. There would come a reckoning for some of them and they’d have to admit to the true scale of their losses. If Deutsche Bank goes down it will be a huge kick in the balls for the entire German and EU economies.
Brexit can’t happen soon enough.
I believe the European Union will be the basis for the Fourth Beast - IMHO (significant gov’t - a world gov’t)
Daniel 7:7-8 King James Version (KJV)
7 After this I saw in the night visions, and behold a fourth beast, dreadful and terrible, and strong exceedingly; and it had great iron teeth: it devoured and brake in pieces, and stamped the residue with the feet of it: and it was diverse from all the beasts that were before it; and it had ten horns.
8 I considered the horns, and, behold, there came up among them another little horn, before whom there were three of the first horns plucked up by the roots: and, behold, in this horn were eyes like the eyes of man, and a mouth speaking great things.
Daniel 7:23 King James Version (KJV)
23 Thus he said, The fourth beast shall be the fourth kingdom upon earth, which shall be diverse from all kingdoms, and shall devour the whole earth, and shall tread it down, and break it in pieces.
lmao
[Sadly, most Americans can’t even spell......
All part of the plan.]
Well, that certainly explains rap and publik skools.
Thanks for posting - keeping a copy to that pic link
Uh-oh. Better bail them out, so that they can use the new cash to buy even more derivatives and put themselves in the hole even further. #MoralHazard
A derivative is simply a bet on how an economic indicator or some other event will go. If the event goes your way, you win. On the other hand, such as in an economic recession, a war or some other institution’s collapse, if a bunch of your bets go the other way, you lose, your lenders lose, and the trickle-down effect can, on a large enough scale of bets, cause the collapse of an entire economy.
Current exposure to derivatives across the world, last time I read, was as high as 1.4 quadrillion dollars.
So our banks are using Deutsche Bank assets as hedges to potentially bad derivatives. Do I have that right?
Not exactly...the Deutsche Bank $48 trillion dollar derivative portfolio is a large un-exploded bomb left over from the last financial crisis.
American banks are in much better shape than they were in 2007-2008, and Dodd/Frank has worked to some extent to make things more stable...but the Europeans papered over their financial problems and its unknown what systemic reaction would occur if Deutsche Bank were to fail.
This chart is a little dated (2016) but gives some idea whats going on.
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