Why 'radioactive' Deutsche Bank could go nuclear at any time, experts warn

a reply to: JacKatMtn

Ask Soros if it's intentional.

Greece was a kiddie pool compared to what Europe is about to face. It was a test run so to speak to see if the mechanisms would produce the type of outcome for which they're looking.

All of these companies will be doing quite well, I'm sure.

originally posted by: ZeussusZ
a reply to: DontTreadOnMe

Wasn't this bank trying to get their gold stored in USA back a couple of years ago. The us wouldn't give it back. Maybe another bank?

It was, they did get some money back, not a lot though, that makes the whole thing suspect.

a reply to: jadedANDcynical

Isn't Greece run by a Goldman Sachs (or some other BIG BANK) executive, installed by the EU folks?

So much happening these past few years, I lose perspective at times...

a reply to: jadedANDcynical

Soros - exactly. I bet he and Rupert Murdoch are salivating thinking of all of the "opportunities" such a collapse would present for them

I wonder if we here could ascertain a time line on what/when things would look bad.

a reply to: JacKatMtn

Please tell me you remember who was involved in a Geece financial cock up after the big crash?

Someone who saw 90% of the value of a hedge fund he managed dissappear into thin air. He used to work for Goldman.

Note, the above-linked article was written in May.

From last year, we have this:

The essence of the debate was whether Greece should do austerity on Europe's terms — or its own. In other words, does it have to cut social spending significantly more, as the Europeans want, or can it reduce deficits by raising taxes, as the Greeks wanted?

washington post

You remember the 'haircuts' bank accounts received?

What kind of knock on effects will Deutsche Bank going down produce?

a reply to: roadgravel

This is part 2 and yes it is a good conversation

a reply to: jadedANDcynical

They know thats just Monopoly money. If it crashes, they have all the gold, they'll just 'reset', issuing replacement currency, and start over.

originally posted by: SeaWorthy
a reply to: DontTreadOnMe

All going down de chutes!

Look at what Wells Fargo did no one seems to ever lose their businesses.

I saw video of John whatshisname before the congressional hearing about it, being scolded by a member of congress, "You should resign!"

Really, resign? If somebody grabs at a cash register in a store they get ten years for robbery, this guy and his cronies should be in jail for life, at least. But they won't. This isn't a crime, its "fraud" isn't a trial, a hearing, not a sentence, a scolding, not justice, a scandal.

Related to this:
deutsche-bank-said-to-face-hur dle-moving-huaxia-money-from-china

a reply to: verschickter

That Bloomberg story would load for me.
If anyone else has the same issue, here's the Chicago Trib's copy of it:
www.chicagotribune.com...

Deutsche Bank agreed in December to sell its 20 percent Huaxia holding as Chief Executive Officer John Cryan sought to bolster capital. Since then, investor concerns about the lender's financial health have deepened. The bank's shares dropped to a record low on Monday after a report that German Chancellor Angela Merkel had ruled out any state assistance. Cryan told Bild newspaper he hasn't sought government help and that raising capital "currently isn't an issue."

Any potential delays in remitting the money from China would mean Deutsche Bank couldn't immediately deploy the cash in bigger markets. The lender generated 277 million euros ($310 million) of revenue in China last year, less than 1 percent of the global total, according to its annual report.

A day late and a dollar short. DB is already merlting down.

Whats happening with Deutche Bank is simple. Its not just Deutche bank, its all the big banks in the world, and small banks also.

They operate on what is called Fractional Reserve Banking. Made possible by various central bankers that had political influence to get politicians to pass laws to allow them to do this.

In simple terms it means banks can lend out more money than they have. It wasnt until the 2008 financial crash that they found out just how much money they were lending out. Use to be way back they could lend out 10 dollars for every dollar they had in deposit. In 2008 they found out that these mega banks from citi bank to others were lending out 20 to 40 dollars for every dollar they had in deposit. Before 2008 it wasnt an issue since everything was running smooth. But by 2008 they found out that these banks have over leveraged themselves to the point where they could not pay back creditors if loans started defaulting. But they thought insurance companies would take care of it. Problem was insurance companies run on the law of averages, so they sell basically 100 insurance policies for everyone that is claimed. When everyone is filing a claim or huge claims, the insurance company doesnt have the money to cover everyone.

So what happened in 2008 was the banks had packaged triple A credit mortgages with D credit or worse mortgages, and got a crediting company to label it Triple A investment. Now banks dont want to carry the liability on this so they do something called off balance sheet financing. What this means is those # mortgages packaged with a few good mortgages, well they get sold off on the stock market in 25 million dollar bundles to pension funds, retirees, hedge funds and other investors world wide. And those loans started defaulting in 2008 and caused the financial meltdown.

So the banks all filed claims, and the insurance companies said they didnt have the cash. What happens in this situation is the banks file claims, insurance companies go under, and the next day the banks go under. But the banks and insurance companies got bailed out in 2008 with trillions of dollars. These investments they sold with # mortgages with a few good ones were called Derivatives.

The financial regulators did tighten the rules after this, but the banks simply changed the name of these Derivatives and still sold them. Also they still had trillions of these Derivatives on the books from like 30 years of this crap going on. The bail out they got was intended so they would loan out money and the economy would grow. But they didnt lend the money. My guess they were paying the creditors on the bad loans still on the books. Also in the last budget in the USA, for the democrats to pass the budget, they had to agree to the republicans to loosen the financial rules and allow the banks to sell derivatives more easily again.

Deutche bank is a tricky situation for Germany and Europe. By law banks cant be bailed out by state intervention. Its why greece ireland and italy could not bail out their own banks. Also the germans pushed austerity down their throats saying they should be more responsible cuz thats what germans want by bailing them out. So if germany bails out Deutche Bank, its gonna cause a # storm in Europe cuz they didnt let others do that. Could break the EU apart.

That said Deutche Bank is in the category of too big to fail. Its one of the largest banks in the world. This means global exposure and all the big banks have exposure to Deutche Bank. So if Deutche Bank goes down, all the other banks and markets in the world will take a big hit. Deutche Banks impact is 5 times larger than Leyman Brothers at least.

Right now based on zero hedge info Deutche bank is leveraged 27 to 1. They have 74 billion in share holder equity value and have total asssets of 2 trillion.

To put in simple terms say you bought a million dollar house. based on this leverage ratio, you put down 37000 dollars deposit and took out a loan for the rest.

The problem is, this 27 to 1 ratio of leverage or debt to cash, it doesnt include the Derivatives. As I said before its called off balance sheet financing so it doesnt show up in the books. But their exposure to derivatives is 63 trillion based on zero hedge site.

So basically they have 74 billion dollars, and have 65 trillion in debt.

I dont think they have a choice but to bail em out. Either way the markets are going to tank like 2008 if they dont act on it fast. And europeans make decisions very slowly.

Deutche Bank has problems making payments to creditors so its why this has all come to light.

But Deutche Bank is not the only bank leveraged this high. You can bet every bank in europe and north america is leveraged this his or worse cuz they been dealing in financial instruments called derivatives i believe since the 1980's so they got alot of bad loans on the books they sweating to pay off, hoping no one finds out.

Think of it like paying off one credit card debt or making payments with another credit card, or as many as you have. At some point they all get maxed out and then the # hits the fan. Deutche Bank is just the first domino to fall after 2008. All the other banks are up to their eye balls in the bad loans also. Some leveraged 40 to 1.

Its how the economies grew so much since the 1970's. They grew by cheap money and debt. The ride was good till 2008 but after that the party was over.

You see the economic growth globally based on high debt was artificial. People and countries borrowed and the times were good but the debt ceilings were hit and surpassed in 2008. The economic growth wasnt based on actual growth and profit but enormous amounts of debt and cheap money. So you borrow money and spend it and have a good time until the money runs out and you gotta pay back the loans. This is the point we are at.

Also the stock markets although they are at an all time high. Its artificial also. After 2008 crash the stock market going up wasnt based on profit. Banks gave zero or negative interest to push people into the markets and gamble. At the same time governments were doing quantitative easing. With this money and and cheap interest, corporations borrowed money and bought back their own stocks called Corporate Buy Backs to artificially drive up their stock price and the stock market. So the stock market being at record highs is not based on fundamental economics and profit. Its an illusion created by companies buying back their own stocks at a rate of 40 billion a month of borrowed money since 2008 to make it look like everything is doing fantastic. Median incomes are at 1990 levels, and aside from the small rise in wages this past quarter, there hasnt really been any wage increases since 1990's. Also 50 percent of the american population make 30k or less as a family. And this past quarter new home housing numbers are down.

Also from 2008 banks still have about 2 million foreclosed homes still on the books in the USA that they didnt put on the market. They were hoping home prices would rebound and then they would put them up for sale.

Long story short, only way to fix this is to reset and forgive everyone debt. Its partially a reason why these events happen every 60 years or so. When things become over valued, their is a market crash and wealthy come and buy it back on pennies on the dollar.

Also this is not just a european problem, it will have impact globally. It will slow economies down even more and drive down consumer confidence and the buying will slow or stop. Especially when people start losing homes and jobs over it.

That means in those emerging markets, factories slow or stop, and no jobs and income. It means also for those commodity based economies, they gonna be hurting cuz production will slow in the factories.

Also that oil production cut by opec of 750 thousand barrels a day. They were pumping 2 million over capacity and there was too much oil. So its gonna be short lived cuz other countries not part of opec will still be pumping oil. Also all those shale oil and tar sands oil producers in north america that slowed or shut down production, they will be pumping more oil once the price jumps a bit and the price of oil will stay the same or go lower. I think there was over 2000 shale oil producers that cut production, when it goes up they will pump more oil and make up that difference the saudi's cut with opec.

The problem is the whole world enjoyed a debt based economy, and now its hit a ceiling and the cheap money is gone so the party is over. So growth wont be like it was cuz it was based on high debt. So the production and growth is not going to be at what it was before 2008.

Its why you are starting to see a move back to protectionism and tariffs, and moving jobs and manufacturing back using this.

a reply to: DontTreadOnMe

They're scrambling to try and make it not look as bad:

“Deutsche has many problems, but liquidity is not one of them,” Graham said in a note. “There can be no doubt that Deutsche could access significant additional liquidity from the ECB, should it ever need it.”

Deutsche Bank shares pared some of their losses of as much as 9 percent following Cryan’s memo, trading down 2.7 percent at 10.59 euros by 2:34 p.m. in Frankfurt. The stock and riskiest bonds had been pushed lower in earlier trading after Bloomberg News reported late Thursday that some hedge funds moved to reduce their financial exposure to the bank.

Bloomberg

It's only a matter of time. Think rats and sinking ships; watch who else pulls out.

a reply to: bluerabbit7788

Awesome posting bluerabbit. Sort of beginning to understand things

i think the 45 trillion dollar claim is little off the mark!

Deutsche Bank's assets are about €1.6tn. HSBC, the biggest non-Chinese bank in the world, has assets 50% greater than that, but Deutsche is still in, or near, the top 10 biggest global banks.
Deutsche's assets minus its liabilities, its theoretical value, are about €67bn. However, investors subtracting the fines the bank might have to pay, and adding in what they suspect are a raft of of dodgy assets, think the truer figure is €14bn.

www.bbc.co.uk...

a reply to: FamCore
a reply to: jadedANDcynical

Yall better believe Soros is salivating, he bet 100 million Euro on it happening a few months ago. Hopefully some of yall followed suit to make your own profits.

Peace and love ! There are no nuclear bombs only lies to keep the sheeple from rising up and taking back their freedoms to control their minds ! Peace and love from the mystical metal hippie

a reply to: bluerabbit7788

Excellent post, great job breaking that all down in layman's terms!

Thank you kindly,
~meathead