Wednesday, September 28, 2016

What Blows Up First?
Deutsche Bank? Really?
John Rubino* is amazed at how Germany is now the focus of a potential global banking crisis .. "Germany, meanwhile, is many things, but clueless and stupid aren’t normally on the list. So why is that country’s biggest bank causing nightmares for global policy makers and investors? Because – in a sign of just how close we are to the end of the fiat currency/fractional reserve banking era – Deutsche Bank is behaving in ways that would make executives at Lehman Brothers and Bear Stearns step back in alarm. It seems, for example, to have become a derivatives junkie. Like a Vegas high-roller who can’t stop raising his bets, DB’s exposure to this unregulated, largely off-balance-sheet market now exceeds not just its host country’s GDP, but that of its entire continent .. DB’s saga seems to be nearing some kind of resolution, with exactly zero potential happy endings. Either it crashes, taking the European and maybe global financial system down with it, or Germany nationalizes it, potentially tipping the euro, dollar and yen into chaos. Germany at the center of a global crisis, who would’ve thought it?"
LINK HERE to the commentary

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