[SkyPilot]

The German government can't wipe out the core debt, and I agree, they don't have the funds.

Things have not imploded yet, but people are very, very, very nervous.

Dow closes down triple digits after Deutsche Bank hits all-time low

But things could go south...quickly.

[Parmy]

They don't have to wipe out the core debt. They will just refinance and extend the debt limit and continue to be able to collect the interest. That's how it works.

Which means that money will be printed out of thin air and there will be backdoor inflation even though all the indices will indicate there is no inflation.

Just like here, in the States.

[Diana in Wisconsin]

Is this the, ‘Black Swan’ we’ve been waiting for? Been reading about it, today.

PLEASE let it hit before Election Day! ;)

https://www.rt.com/business/360917-deutsche-bank-lehman-crisis/

[Revel]

Right. Germany does not as country have anywhere close to enough cash to wipe out the debt of this bank. At best they can only kick the can.

“If you think Germany can bail out Deutsche Bank you’re delusional. Their total derivative exposure grossly exceeds the entire net value of everything in Germany! Not just the government’s resources, all private resources as well! In other words even if the government wanted to bail them out, even if they’d survive bailing them out politically they can’t, even if they attempted to confiscate everything of value within the nation.”

https://market-ticker.org/akcs-www?post=231518

More:

https://market-ticker.org/akcs-www?post=231521