Tuesday, October 04, 2016

Crisis Fatigue
In his latest missive, Tim Price laments his career in asset management as one crisis after another .. now it is Deutsche Bank with its insane derivatives exposure level .. "Watching The Big Short again over the weekend, it seems as much like the shape of things to come as a witty, if poignant, documentary about a historic failure of common sense. Nobody learns anything. It is eight years since Lehman Brothers failed, and the financial system, especially in Europe, would seem to be in no better shape now than it was back then, going by the health of some of the region’s major banks, and also Barclays. This also means that of this correspondent’s quarter century career to date in asset management, at least a third of that period, and probably closer to a half, has seen the industry in a state of acute crisis. The universal onset of crisis fatigue amongst market participants may, then, account for the mood of general complacency that has so far accompanied Deutsche Bank’s slide towards insolvency if not yet outright irrelevance. We happen to agree .. Deutsche Bank may yet serve as the terminal pin, the fundamental and seemingly intractable problems with bankers, central
bankers, economists, fund managers, and the financial media. Few prisoners are taken. Few deserve to be."
LINK HERE to the missive in PDF

No comments: