Deutsche Bank toxic derivative losses

westernpromise

Thrugelmir wrote: »

Basle III is global regulation.

MIFID II isn't.

Thrugelmir

westernpromise wrote: »

MIFID II isn't.

Increasing competition and protecting consumers are worthy aims. Competition requires there to be sufficient profitable business to be worthwhile though. US banks are far stronger generally than European ones. Who have yet to deal with historic issues.

Woby_Tide

Thrugelmir wrote: »

With increasing levels of technology where banks are located becomes less and less relevant. Transaction volume is also decreasing.

Derivative transactions or banking transactions? For the latter transactions appear to be a large upward tick lately

Thrugelmir

Woby_Tide wrote: »

Derivative transactions or banking transactions? For the latter transactions appear to be a large upward tick lately

At the peak of the GFC inter bank trading represented 52% of all activity. As players pull out of market sectors. Primarily due to a lack of profitability. Then the spiral turns inwards and downwards.

AG47

Thrugelmir wrote: »

At the peak of the GFC inter bank trading represented 52% of all activity. As players pull out of market sectors. Primarily due to a lack of profitability. Then the spiral turns inwards and downwards.

After films like the big short with brad Pitt there will be no bailout next time, the public will not send for it.

The problems from 2008 were just pushed into the future


You cant solve a problem of too much debt with more debt,

All debts are going up, not being paid off, just going up exponentially

Malthusian

AG47 wrote: »

After films like the big short with brad Pitt there will be no bailout next time, the public will not send for it.

The public didn't watch The Big Short. Nobody watches films about hedge fund managers striking it lucky. The latest Star Wars film has already grossed three times as much, and that's considered a complete box office flop (and unlike TBS it's still showing).

A bailout should not be necessary due to improvements in the compensation scheme. Nonetheless, if we do get queues outside ATMs again, the public will stand for whatever is necessary to ensure the cash machines still work and they can buy bread and booze.

You cant solve a problem of too much debt with more debt,

All debts are going up, not being paid off, just going up exponentially

Yes, because of economic growth. If I take out a £200,000 mortgage and then ten years later I take out a £300,000 mortgage and in another ten years I take out a £500,000 mortgage, you would say that my debts are going up exponentially, that it's unsustainable and I must be headed for bankruptcy. The fact that my earnings have increased in that 20 years and it's perfectly affordable for me to take on increasing levels of debt to buy myself a bigger house would pass you by.

AG47

Starting to look like all the DB cheerleaders are going to have to eat their hats

AG47

I wonder which will go under first, DB or the EU?

AG47

DB just failed all the stress tests again,

If this 50 trillion derivative holder goes down then everying goes down

And it just showed it fails all the stress tests

https://youtu.be/tMybLf6qqoE

Crashy_Time

Malthusian wrote: »

The public didn't watch The Big Short. Nobody watches films about hedge fund managers striking it lucky. The latest Star Wars film has already grossed three times as much, and that's considered a complete box office flop (and unlike TBS it's still showing).

A bailout should not be necessary due to improvements in the compensation scheme. Nonetheless, if we do get queues outside ATMs again, the public will stand for whatever is necessary to ensure the cash machines still work and they can buy bread and booze.


Yes, because of economic growth. If I take out a £200,000 mortgage and then ten years later I take out a £300,000 mortgage and in another ten years I take out a £500,000 mortgage, you would say that my debts are going up exponentially, that it's unsustainable and I must be headed for bankruptcy. The fact that my earnings have increased in that 20 years and it's perfectly affordable for me to take on increasing levels of debt to buy myself a bigger house would pass you by.

Wages didn`t increase during the credit/debt expansion, that is the whole point, it hid real stagnation in people`s earning power, why do you think politicians love the property bubble so much?