Deutsche Bank toxic derivative losses

phillw

AG47 wrote: »

GFC 1.0 in 2008 they had room to lower interest rates, they could expand the currency supply with quantitative easing.

GFC 2.0 when Deutsche Bank blows the derivatives time bomb the people won’t stand for another banker bailout. The money supplies are all far too big and they promised to reduce the flooded supplies and they are already at net zero interest rates, they can’t cut anymore like they did in 2008.

Money is a human construct, even if your predictions are true then someone will figure something out that keeps us going.

Thrugelmir

fun4everyone wrote: »

I don't know what happens when it goes bankrupt. It's a when not an if. I can't see the Germans bailing it out, political nightmare. It will have some harsh knock on effects.

Like RBS. Too big too fail. The cost ultimately will be borne by German taxpayers.

LHW99

Thrugelmir wrote: »

Like RBS. Too big too fail. The cost ultimately will be borne by German taxpayers.

But hasn't the EU now decreed (somewhere around the time of Cyprus) that costs have to be borne first by shareholders, then by savers?

AG47

LHW99 wrote: »

But hasn't the EU now decreed (somewhere around the time of Cyprus) that costs have to be borne first by shareholders, then by savers?

There is still not enough,

And imagine the chaos of a bail in of this size

There will be banks runs all over the world

I’m certainly thinking about pulling all my money out of the banks

Thrugelmir

LHW99 wrote: »

But hasn't the EU now decreed (somewhere around the time of Cyprus) that costs have to be borne first by shareholders, then by savers?

EU directives won't apply to the bank's international subsidaries though. Restructuring DB will be a complex operation (as was the case with RBS).

AG47

Thrugelmir wrote: »

EU directives won't apply to the bank's international subsidaries though. Restructuring DB will be a complex operation (as was the case with RBS).

Comparing RBS with the DB situation is like comparing a small house fire with Chernobyl nuclear meltdown

AG47

“The bulk of the anticipated U.S. cuts will come from its money-losing equities business, which includes cash equities trading. Other areas of the business, including U.S. rates trading, have been earmarked for further reductions, they said.“

https://www.cnbc.com/2019/05/24/deutsche-bank-plans-cuts-at-its-us-equities-business.html

AG47

This is part 3 but well worth watching all the series

From an ex institutional bankster

https://youtu.be/1cz_J4dZijE

AG47

phillw wrote: »

Money is a human construct, even if your predictions are true then someone will figure something out that keeps us going.

Tell that to Venezuela, Wiemar Germany and Zimbabwe hundred trillion dollar currency notes.

What they did in 2008 was lower interest rates down to near zero, then creating trillions of units of currency out of thin air, hoping they can reduce currency supplies later.

All they did in 2008 was kick the can and made things far worse as now they can’t lowwr interest rates as they did in 2008, and they can’t expand currency supplies at a time when they promised to reduce expanded supplies.

Kentish_Dave

Do you have an actual prediction as to when DB will declare bankruptcy, or have you decided to stop that since making so many predictions that fell flat on their face?

Or is this like the return of Jesus, where “soon” can mean two thousand years and counting?