Posted on 09/29/2016 4:35:35 PM PDT by The Bat Ladys Husband
Calling Angela Merkel... bailout in 3. 2. 1.
I may have misspoke, I just re-read Karl Denninger’s post on DB and it looks as though he said the derivative market has expanded and additional $57 Trillion since 2007.
Here is the link, in any event DB does have a huge derivative exposure to be concerned about.
https://market-ticker.org/akcs-www?post=231518
I think they have planned a nice Reichstag fire/Crystal Nacht blaming it all on BREXIT and Trump.
Well I did another look and found this link on DB, yes they have derivative exposure of between $55 and $75 Trillion. How is this possible?
Whatever the exposure it is bad and Citi along with Barclays are in trouble also. So if DB is not propped up it could take down the top 10 to 15 banks in the world. So my opinion is that DB will not be allowed to fail.
Best case scenario:
Trump, with his amazing negotiating skills, is able to renegotiate US debt, get it down to manageable levels, lift the yoke of socialism, unleash the power of capitalism, and send this nation into a starburst of energy and production the likes of which we’ve never seen.
Worst case scenario:
The monetary system collapses, Soros swoops in, and de-populates the Little People.
Only God knows what He will do.
Meanwhile, prepare as best as you can, and pray!
The sky is falling.
See how much its lost this year!
Deutsche Bank is in very deep doo-doo. Management shake-ups, mass lay-offs, plummeting stock.
Exceptionally exposed to derivatives - in the trillion$.
Derivatives, of course, are all heavily leveraged between many key banks. If Deutsche crumbles, most of the world’s TBTF (too big to fail) banks will follow suit. I don’t foresee central banks bailing them out. The Fed alone would probably have to create 100 trillion dollars out of thin air - instantly. This will be a financial nuclear explosion that could likely collapse the fiat money system as we know it.
Yes, never should have let commercial banks get into investment banking. Corrupts the concept of sound money.
Everything becomes financial speculation.
The key question is: Can DB be saved once the dominoes start falling? Germans still remember the horrible inflation of the Weimar Republic. To bail out DB, the Germans would have to create trillions of Euros via the ECB - leading to what could end up being another hyper-inflation....
Drink some good beer and buy silver...then relax.
Be careful what you wish for. But in this case you will probably get your wish.
apocryphal chinese curse:
May you live in interesting times.
ok so it isn’t 57 Trillion
ITS 72.8 TRILLION
http://www.zerohedge.com/news/2016-02-03/it-time-panic-about-deutsche-bank
I am not thinking of a bailout as much as I am of them being propped up. Ain’t enough money to bail them out, so either they are propped up or a very carefully done bankruptcy to re capitalize them. Only time will tell what will happen. If they try a bail in I think the average German depositor will raise hell.
“Please let it be mild for a day or two! After 45 months on the market, Isold my house and the closing is tomorrow!”
Congratulations, Mr. Chips! I hope the closing goes smoothly.
Why?
$100 billion in new capital and fewer idiotic regulations would fix DB.
Margin calls? They must be IDIOTS. This market is fantastic, near all-time highs, and crude oil trading it hotter than ever. Tech stocks are acting like it’s 1999. A junior level trader can make a million in this environment. SO many IPOs are smoking hot.
Thank you. I despaired when Obama was re-elected because I knew that it meant the housing market in my small city would be lousy and that my house would never sell. I did sell, finally, after 45 months of showings and cleaning and yard work that exhausted me, and I sold at a loss, of course. But, you know, in a way, I have survived Obama.
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