Deutsche Bank toxic derivative losses

AG47

http://www.theguardian.com/business/deutschebank

Looking back at the Lehman Brothers collapse of 2008, it’s amazing how quickly it all happened. In hindsight there were a few early-warning signs, but the true scale of the disaster publicly unfolded only in the final moments before it became apparent that Lehman was doomed.

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First, for purposes of drawing a parallel, let’s re-cap the events of 2007-2008:

There were few early indicators of Lehman’s plight. Insiders however, were well aware: In late 2007, Goldman Sachs placed a massive proprietary bet against Lehman which would be known internally as the “Big Short”. (It’s a bet that would later profit from during the crisis).



In the summer 2007 subprime loans were beginning to perform poorly in the marketplace. By August of 2007, the commercial paper market saw liquidity evaporating quickly and funding for all types of asset-backed security was drying up.

But still — even in late 2007, there was little public indication that Lehman was circling the drain.

Probably the first public indication that things were heading downhill for Lehman wasn’t until June 9th, 2008, when Fitch Ratings cut Lehman’s rating to AA-minus, outlook negative. (ironically, 7 years to the day before S&P would cut DB)

AG47

AG47 wrote: »

They can’t take on the assets without taking on the liabilities

50 trillion plus in toxic derivatives that’s a hell of a lot of liabilities :rotfl:

170 police and investigators raiding DB offices, just at a time when the share price is at all times lows....


I remember when people were saying watch for the price to go under ten euro, for the trigger of the €50 trillion toxic derivatives. Well we are past that and now triggering the contagion

Even if they are let off all the derivatives then who will take all the losses?

It’s obvious that DB can’t honour all their unfounded liabilities

AG47

DB is without a doubt too big to fail.

If they fail then the entire global financial system will fail.

But they are failing.

Malthusian

AG47 wrote: »

DB is without a doubt too big to fail.

If they fail then the entire global financial system will fail.

But they are failing.

This is one of the most coherent and sensible things you have posted in this thread.

Has Deutsche Bank and the entire financial system collapsed yet?

AG47

Malthusian wrote: »

This is one of the most coherent and sensible things you have posted in this thread.

Has Deutsche Bank and the entire financial system collapsed yet?

Nope but the problems are compounded the more they kick the can.

Are you one of the sheep who think DB are fine and the 50 trillion derivatives are fine.

The 170 police and investigators who raided DB a few days ago is no big deal, everything is fine.

Green shoots everywhere, nothing to see here:rotfl::rotfl:

Malthusian

AG47 wrote: »

Green shoots everywhere, nothing to see here

Ah, "green shoots". A phrase most recently used by Baroness Vadera in 2009, for which she was roundly mocked and criticised. She said she saw "green shoots of recovery" at almost the exact bottom of the market (January 2009), and she was proved 100% correct by the ensuing 9-years-and-counting bull market.

Previously it was used by Norman Lamont in October 1991, again to much criticism. The 1990-91 recession ended that very quarter, proving Lamont 100% correct.

I don't advocate market timing, but if there's a recession and/or stockmarket crash on, and you have a load of cash which you're scared of putting into the market, and

1) a politician says they see "green shoots"
2) everyone else in politics and the media crucifies them for being delusional / out of touch,

past performance says that it's time to bash on the wine gums.

If "green shoots" was supposed to suggest delusional optimism, I think you need a better phrase.

AG47

Malthusian wrote: »

Ah, "green shoots". A phrase most recently used by Baroness Vadera in 2009, for which she was roundly mocked and criticised. She said she saw "green shoots of recovery" at almost the exact bottom of the market (January 2009), and she was proved 100% correct by the ensuing 9-years-and-counting bull market.

Previously it was used by Norman Lamont in October 1991, again to much criticism. The 1990-91 recession ended that very quarter, proving Lamont 100% correct.

I don't advocate market timing, but if there's a recession and/or stockmarket crash on, and you have a load of cash which you're scared of putting into the market, and

1) a politician says they see "green shoots"
2) everyone else in politics and the media crucifies them for being delusional / out of touch,

past performance says that it's time to bash on the wine gums.

If "green shoots" was supposed to suggest delusional optimism, I think you need a better phrase.

"No more boom and bust" :rotfl:

AG47

Malthusian wrote: »

Ah, "green shoots". A phrase most recently used by Baroness Vadera in 2009, for which she was roundly mocked and criticised. She said she saw "green shoots of recovery" at almost the exact bottom of the market (January 2009), and she was proved 100% correct by the ensuing 9-years-and-counting bull market.

Previously it was used by Norman Lamont in October 1991, again to much criticism. The 1990-91 recession ended that very quarter, proving Lamont 100% correct.

I don't advocate market timing, but if there's a recession and/or stockmarket crash on, and you have a load of cash which you're scared of putting into the market, and

1) a politician says they see "green shoots"
2) everyone else in politics and the media crucifies them for being delusional / out of touch,

past performance says that it's time to bash on the wine gums.

If "green shoots" was supposed to suggest delusional optimism, I think you need a better phrase.

Is it Deutsche Banks fault that the worlds stock markets are starting to tumble?

AG47

Hang on tight!

Deutsche Bank is the lynch pin of the Derivative Implosion and that lynch pin is getting pulled NOW! Noble Group just failed and was DB's counter party to MASSIVE SILVER DERIVATIVES!

Deutsche Bank, Silver, Cryptos Derivative = Creative Destruction Event!!

https://youtu.be/fKyyjPGAP6c

AG47

Confirmed Noble group files for insolvancy.......

What will happen to the other side of all these toxic derivatives that are now Deutche banks and are going belly up?