Deutsche Bank crisis threatens to roil global markets. (Potential of affecting U.S)

mcveteran81

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Link : http://www.marketwatch.com/story/a-...s-threatens-to-roil-global-markets-2016-09-28

Link : http://www.marketwatch.com/story/ho...-stressing-out-the-us-stock-market-2016-09-26

Snippets :

"Earlier in the week, one financial blogger, Wolf Richter, wrote that deep-seated concerns about Deutsche Bank’s ability to raise enough cash to give the market comfort that it is on a sound footing speaks to a larger problem that Europe’s embattled banking sector must combat. Richter, the editor of financial blog site Wolf Street, said “the banking crisis [in Europe] has the potential to transmogrify into a financial crisis.”

He went onto say: “All it takes is for one of the big [banks] to suddenly topple. The flow of credit would freeze up instantly. In an economic system that depends on credit, and whose lifeblood is credit, such an event is a financial crisis.”

1). The emergence of negative interest rates, as central banks employ radical monetary policies to juice growth in Europe, has hampered eurozone banks’ ability to make money, by eroding profits between their short-term borrowing costs and what they can charge for long-term loans. The German 10-year government bond TMBMKDE-10Y, +18.94% known as the bund, was yielding negative 0.15% as of Wednesday. Bond yields fall as prices rise.

2). Also, many banks have been late to restructure in the wake of the 2008-09 financial crisis that roiled global markets.

3). Italian banks are saddled with billions of souring loans and are seen as a possible threat to the eurozone economy.

4). And many other banks, namely Deutsche Bank, are set to face sizable fines in the fallout from selling dicey mortgage-related securities, which could further tax their capital cushions.

How the fuck is this shit not news on major news networks in the U.S yet?

HUGE RUMOR ;

China and Russia have bought a shit ton of gold and will use it to back there currencies with
. When the markets in Europe Collapse there going to take the U.S market down with it, since both markets financial system is based on CREDIT.
 
HUGE RUMOR(s) continued :

The only financial institution with a balance sheet clean enough to respond to the crisis will be the IMF. The IMF acts like the “central bank of the world.” It will have to issue massive amounts of SDRs to hold the international monetary system together. The result will be the end of the dollar as the leading global reserve currency. That’s why today’s developments represents such a dramatic change from the past.

The economy is on the brink of recession. We’ve had a full year, 4 consecutive quarters, with average growth of about 1.2% and with some revisions that may even go lower. This is not just weak growth, it’s extraordinary weak, and dangerously close to recession.

Global trade has fallen dramatically. Stocks are in bubble territory and volatility is returning. You never know what event will cause a crash, but it could literally come at any time.

On Oct. 7, the IMF will hold its annual meeting in Washington, D.C., to consider additional steps to expand the role of SDRs and make China an integral part of the new world money order. But there’s another looming development that has implications for the adoption of SDRs…

The return of the BRICS.

“BRICS” is an acronym for Brazil, Russia, India, China and South Africa, which are among the largest emerging-market economies and make up about 22% of global GDP. Five years ago, discussion in international monetary circles was all about the rise of the BRICS. It appeared the BRICS would mount a serious challenge to U.S. dollar hegemony. Then the BRICS story went quiet in 2014–15. It looked like the BRICS story was fading in importance. But now that’s changing.

At the G-20 Leaders’ Summit in Hangzhou, China earlier this month, BRICS made a very interesting demand. They may be 22% of the global economy, but they only hold 14.89% of the votes at the IMF.

Any individual country or group of countries with 15% has veto power over certain major IMF decisions, including the issuance of SDRs. Only one country has over 15% today, and that’s the United States. The BRICS are now demanding that their IMF vote move closer to their share of the world economy and past the 15% threshold.
 
This could very well be the flash point. If Deutsch Bank goes, there's likely no stopping the contagion. That's a massive fucking bank to go under.
 
Dow jones closed at -195 today, expect Dow to plummet more tomorrow.
 
Dow jones closed at -195 today, expect Dow to plummet more tomorrow.

I don't know about calling movements from day to day, but the action is going to be in the bond market before the stock market.
 
I don't know about calling movements from day to day, but the action is going to be in the bond market before the stock market.
It's so hard to say. I'm trying not to buy into all the hype I read today on this. But one thing is certain, there's essentially two outcomes, neither are desirable (imo)

One germanies plummet will obviously continue more and then bring other foreign markets down with it in a relatively fast fall (I.e span of a few weeks to months as the contagion spreads, which is the fast & worst case scenario)

Two the above happens but at a slower rate because the IMF steps in, but with that the American dollar is eventually replaced, still fucking us at future date tbd.

Third (absolute hype job worst case scenario) we start falling apart tomorrow and by next week there is huge global distress. (Only the ct sites are stating this, not legitimate news sites)

Tomorrow will be interesting.
 
I wouldn't mind a major market drop at the moment. When 2008 Financial Crisis occurred, I was still in university and had no savings to invest. Basically I almost completely missed out on the 7 year bull market that followed. I could have easily doubled my current net worth if I had the cash on hand to buy in around 2010.

This time my body is ready.
 
Wasnt Deutsche Bank one of the good banks during the GFC that did not go under or had issues along with Swiss Bank and UBS? And werent these all prominent during WW2 for supporting Nazi regime? I just remember reading somewhere that the Swiss Banks supported the Nazis. I dont know why I bring that up. Im tired from working all day.
 
Holy shit. This could be the Global Financial Crisis 2.0, the sequel to 2008.

The bank is already down 6% before opening. Without a bailout, a collapse could be imminent.
 
I don't believe BRICS will ever succeed or especially take over the dollar's role in being the world currency/reserve. I think that's just fearmongering.

But it's true that this bank could be on the verge of collapse without a bailout, and that would have major consequences in Europe especially but around the globe as well. We already saw what a credit line freeze looked like almost a decade ago.
 
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