So... Deutsche Bank

[karbatal]

As happens with nightmarish scenarios,  many voices have been raised before and alerted of the big problem.  Just one year ago I read a worrying article about the immense debt from Deutsche Bank, that amounts to FOUR TIMES Germany GDP.  "The bank is incredibly exposed to emergent countries situation and the demise would be catastrophic" 

 

We are seeing the scenario becoming more and more real. Is there any economics expert here who can bring some light here?  They say a much bigger crisis is about to happen and this could be the new catalyst. 

[Raider of the lost Ark]

The Deutsche Bank is the typical example of someone having delusions of grandeur. Back in the day, the Deutsche Bank was considered the backbone of the German industry since almost all big and medium sized companies were in some way or another customers. In addition to that the Deutsche Bank had millions and millions of private customers, the average Joe if you will. Business wasn't bad. But as always in finance, a huge profit is sometimes not huge enough and the board decided the Deutsche Bank made the step into investment banking. To make sure, that this business is thriving they hired the most expensive people Wallstreet and the City of London had to offer to manage the NY and London branch. And it worked. In the beginning. What did they do? Kicked out all the average Joes and smaller businesses. All of a sudden they were beneath them when the Deutsche Bank became a global player or shall we say high roller. Of course, the Deutsche Bank participated in all the shady business of subprime mortgages. Too bad that their expensive staff was not clever enough to see that the Deutsche Bank was at the end of the food chain when American banks sold their toxic credits to them. Of course, the Deutsche Bank did most of this business in Ireland making use of Irelands "competitive" corporate tax system. As most other (investment) banks Deutsche Bank was sued several times and had to pay billions in damages and fines. In result they had to post a huge loss last year thanks to accruals/provisions formed for current and future lawsuits. Like the one where U.S. authorities want 14 billion dollar in relation to the mortgage crisis. This could break the banks neck. Quite frankly, the number is absurd and like the VW lawsuit there seem to be other intentions behind it. Call it a conspiracy theory but it's very strange that Deutsche Bank and VW are supposed to play damages much higher than U.S. counterparts which were more heavily involved or in case of U.S. car or motorbike makers actually caused real harm like injuring or even killing people because of technical problems of a much larger scale. Of course, they did not cheat to sell their products and were clever enough to immediately cooperate with authorities.

And Deutsche Bank is not having a debt four times as high as the German GDP. That would be around 12 trillion Euros. Interest per year alone would be higher than the share market value of Deutsche Bank. I don't see how they should have amassed this insane amount or hide it. Anyway, if the bank collapses, it's not going to be saved this time. Mostly because of their arrogant behaviour, acting as if they were above the rest. An example will be set. And since there are no longer "little" people customers the dangers for normal people is limited. Savings are guaranteed by a special bank fund and the state up to 100.000 Euros. Everything above, bye bye. Serves them right.

[promise to try]

well...will germany´s government pay for their debts, as we have done in spain with other banks?

[karbatal]

No. Since the Spanish bail out of the banks, which WE have to pay,  it was decided that there would be bail in,  that means that investors or holds owners would pay.  That's what Merkel told Italian prime minister a couple of months ago.  So Germans won't pay either.  Meanwhile Spaniards have to pay 40 billion euros. WTF???? 

 

Thanks Raider for the sum up.  I really hope that things don't go crazy.  

[promise to try]

15 minutes ago, karbatal said:

No. Since the Spanish bail out of the banks, which WE have to pay,  it was decided that there would be bail in,  that means that investors or holds owners would pay.  That's what Merkel told Italian prime minister a couple of months ago.  So Germans won't pay either.  Meanwhile Spaniards have to pay 40 billion euros. WTF???? 

 

Thanks Raider for the sum up.  I really hope that things don't go crazy.  

I can´t believe it bunch of hijos de puta

[karbatal]

Jajaja 

[promise to try]

it´s so sad...what are we,slaves?

[karbatal]

We never stopped being slaves. They simply gave us money to exchange for goods. 

[XXL]

Well, 2008 Part Deux has just started

This is just a game of manipulated domino effect justified with all sorts of possible excuses. But it's engineered from the word go, just like it was in 2008. Deutsche Bank is fundamental within the European banking scenario. Monte dei Paschi next. Meanwhile the trecherous FED, the ECB and the Bank Of England keep printing trillions out of thin air. The moment the Federal Reserve starts raising interest rates their massive Ponzi scheme will come to fruition. Currency collapse imminent

 

 

 

[XXL]

And all of this amidst a scenario of failed EU monetary let alone political policies plus terrorism, refugee crisis, Middle East turmoil etc. It's awful

That criminal QE agenda, goosing up the system till you're ready to make it pop, all stock market and zero main street common sense