Deutsche Bank is on the edge, it seems to be the Next Lehman Brothers (of 2008 crisis) as it’s on the way to failing. This could be it guys, the penny is about to drop. And that’s $49 trillion worth of pennies in exposure to derivatives - as much as JP morgan chase, citigroup and goldman sachs (48, 47, 42 trillion $$$ respectively, logged in Dec 2018). Are you able to move your funds out of the dying fiat and into the mooning lambo? Back in 2018 already the bank was taking strain. Mass lay offs up to almost 20 000 staff globally. Will the last one out please turn off the lights.
DB 10% reduction in derivatives. Share price went from 19 to 8 $ - DOWN 58% in a year. With shares outstanding, they lost $23 billion in market cap. And this is after receiving $16 Trillion in secret loans in the 2008 crisis. Goldman Sachs derivatives 2008 has exposure to $7.2 trillion to three major banks. It’s an obscene amount of exposure, especially when we look at DB balance sheet 1,5 trillion$ - not much equity, and has deteriorated by $1 billion a day, being pulled out presently. The failure of DB could become a crisis for global funds. Systematically another Lehman, where one bank’s problems become the other bank’s problems in the domino effect. Probably the Fed will have no choice but to cut interest rates. The 2 “too big to fail” banks are exposed to DB. Most of the Wall St banks in fact.
IMF says DB is heavily interconnected to Goldman Sachs, BOA, Citi Group, JP Morgan Chase, Morgan Stanley and Mega in the EU. DB posed a greater threat as a result of their interconnections back then already. Basically the mega banks must be broken up and the Fed replaced by competent and serious regulator, transparent exchange needed, other wise the crash is on the way. Curiously Merryl Lynch is also involved. Fed is not just US central bank but also the main regulator of Wall St bank holding companies.
The financial weapons of mass destruction (FWMD) grew, leading up to the last crash, and the pile of debt has grown, as have the derivatives, from $88 trillion in 1999 to $684 trillion in 2008. This is all virtual money, of which there is no gold to back it, or anything of value whatsoever in the most unregulated market. People go on about how unregulated the cryptocurrency space is and how vulnerable it is to scams. But if we look at the global derivatives market, we see a market based on nothing more than the possible movement of a price on way or the other, not upon anything else. And the risk is huge of potential loss and not only that but the risk is as big for getting conned by unregulated brokers who don’t give you your money back.
I have a friend who somehow opened an account at an online brokerage and became one of the several whose comments litter the reddit posts and help groups about how they were bullied into parting with more and more money, while in the end not even being allowed to withdraw the final lot. It became open manipulation and outright theft. Excuses and aliases from the brokers on the phone paved the way to losing thousands of Pounds and Dollars, sometimes to the same few operators on the other side. And we haven’t even begun to mention the more hidden unregulated activity.
As has become obvious, the structural problems of the financial system that caused the global recession were never fixed. And its more vulnerable today. The next crisis moment is playing out before our eyes. Were talking about the biggest bank in the EU. This is the king pin that’s about to pop by the looks of it.
Must Dash, digital nomad on the move. Just thought you might like to know...it’s all going up in smoke. Therefore it favors the wise investor to exit the fiat and futures market while preferably investing in hard money, like gold and Bitcoin. Bitcoin is immutable, is in fact digital gold, and is actually scarcer than gold. It is deflationary, the opposite of fiat. This is not financial advice just my personal insight at a time like this, so now’s the time guys, while Bitcoin is cheap to move your pension funds, your savings and all your fiat into gold and digital gold, Bitcoin.