what happens if deutsche bank collapses?

[nick mercedes]

I read that one of Europe's biggest banks is in the brown stuff:

Will Deutsche Bank's Collapse Be Worse Than Lehman Brothers? | Zero Hedge

Will our banks survive?

Should I invest in tinned food and bottled water?

 

[whitenemesis]

Gold sovereigns might be a more wise conversion

 

[moonloops]

Germany will be on the brink of collapse due to Brexit

 

[Red C220]

It'll be supported as required by the state and the CEB to stop complete financial meltdown in Europe.

The bigger problem we're facing is the potential collapse (aka "hard landing") of the Chinese economy, which is not a case of if, but when.

We're in some form of bizarre vacuum created by historically low interest rates that was created in an effort to stop a catastrophic collapse in 2008/9.

One of the main tools used to deal with these corrections and recessions is the ability to reduce interest rates to stimulate growth. What do you do if there is effectively no interest rate to drop?

There will be another worldwide financial event in the near future, it is an inevitability for capitalism to exist. The clever (rich) people are the ones that get the timing right.

"The Big Short" should be viewed more as a documentary than Hollywood entertainment.

The irony of all this is they're at it again. I've been offered a mortgage by my bank (where I hold my business and personal accounts) for an eye watering sum of money that is now based on "affordability" rather than salary multiples. I'm out of my comfort zone taking it on and I'm watching the property market with a great deal of interest.

 

[moonloops]

*Investing in Pork Bellies*

 

[nick mercedes]

The clever (rich) people are the ones that get the timing right.

But ultimately the ones to blame, and the ones the baying mob will come after?

 

[nick mercedes]

Germany will be on the brink of collapse due to Brexit

So,

India and Pakistan want to nuke each other

The Chinese economy is about to implode, and presumably the Chinese will rise up

America is about to elect a racist moron as president, and everyone in america has more guns than teeth

The biggest bank in Germany is on the brink of collapse, which will take out the EU and the Euro with it

And we kicked it all of by brexiting?

 

[Red C220]

But ultimately the ones to blame, and the ones the baying mob will come after?

It's crooked from top to bottom. The entire banking and capitalist system is a vast conflict of interest and insider deal. All of it, without exception.

You either accept that's how it is and figure out how to deal with it to your own advantage and not get burned or you whinge about without any constructive ideas of a realistic alternative.

It is what it is. It's not going to change in any of our lifetimes.

 

[LTD]

I thought that Europe declared they didn't need us ?

Just proof we were the cash cow hamstrung by an EU open door migration policy that ended in the UK due to our benefits system.

 

[whitenemesis]

So,

India and Pakistan want to nuke each other

The Chinese economy is about to implode, and presumably the Chinese will rise up

America is about to a racist moron as president, and everyone in america has more guns than teeth

The biggest bank in Germany is on the brink of collapse, which will take out the EU and the Euro with it

And we kicked it all of by brexiting?

More guns than IQ...

Brexit, a bit like stepping off the free-falling lift just before it hits the bottom?

 

[Red C220]

So,

India and Pakistan want to nuke each other

The Chinese economy is about to implode, and presumably the Chinese will rise up

America is about to a racist moron as president, and everyone in america has more guns than teeth

The biggest bank in Germany is on the brink of collapse, which will take out the EU and the Euro with it

And we kicked it all of by brexiting?

It's refered to as Douche Bank in the industry.

Nice to see your posting the usual quality financial banter Nick. I'm actually surprised you've not been snapped up for a column in the FT.

 

[moonloops]

I thought that Europe declared they didn't need us ?

Just proof we were the cash cow hamstrung by an EU open door migration policy that ended in the UK due to our benefits system.

3 to 5 billion we spend in Europe every year.. go figure who's going to lose out.. This time next year Rodney, we'll all be buying morgans

 

[nick mercedes]

3 to 5 billion we spend in Europe every year.. go figure who's going to lose out.. This time next year Rodney, we'll all be buying morgans

We'll all be rooting round in the shed and dusting off our push bikes.

 

[moonloops]

We'll all be rooting round in the shed and dusting off our push bikes.

Just need a few cobbled roads to go bouncing down now.

 

[nick mercedes]

"DB had derivatives which notional value was €42 trillion"

That seems like a lot of money, so is that what they have to pay up at some point?

 

[Red C220]

"DB had derivatives which notional value was €42 trillion"

That seems like a lot of money, so is that what they have to pay up at some point?

DB are currently undergoing an investigation by the US Department of Justice (DOJ) concerning the misselling of mortgage backed securities during the last crisis.

The DOJ have opened with an opening "fine" of $14 Billion, which if enforced would casue a Lehmann Bros type event as DB market capital is currently "only" in the region of $16 Billion.

Seeing as DB's current position equated to approx 20x Germany's GDP it's not really in the DOJ (read the USA's) interest to fine DB an amount of money that effectively busts it.

DB currently have $5.5 Billion set aside to deal with the DOJ position. Expect a lot of posturing, lawyer fees and a few slapped wrists arriving a figure remarkably close to $5.5 Billion that allows the merry go round to continue. No one will go to jail. Well maybe one poor sod will get shafted but no one of importance will.

This investigation is the current explanation for the strength of the US$.

 

[markjay]

Geithner rescued Bear Sterns, then allowed Lehman to collapse, then rescued AIG. The rest is history.

One would think that anyone looking at this would know by now what is the right thing to do when a major bank is about to fail.

 

[Yugguy]

Dunno about any other aspect but Deutsche Bank IT is constantly recruiting which makes me think it must be crap working there.

 

[zipdip]

Well over night the far east markets went up,our banks were strength tested ,people these days get in a panic if the mobile phone stops working,given the state of Greece and Italy and this german bank,I suppose the EU will be under the cosh,as for China,well they do have big debts, as do the US ,China could pay that debt down but are too fired up trying to buy and invest around the world,my guess is today the market will correct itself,and the panic will seem a little crazy,of course the boys will be looking to make some money so who knows ,some positions have still to unwind.

 

[Scott_F]

So,

India and Pakistan want to nuke each other

The Chinese economy is about to implode, and presumably the Chinese will rise up

America is about to elect a racist moron as president, and everyone in america has more guns than teeth

The biggest bank in Germany is on the brink of collapse, which will take out the EU and the Euro with it

And we kicked it all of by brexiting?

Of course we did.

Now that we've given Johnny Foreigner a poke in the eye and showed them who's boss those Germans have only been left with 26 other EU states and the rest of the world to trade with.