Death Throes of Deutsche Bank, and Impact to Global Economies?

Originally posted on April 26th, 2012 – I offer you and updated view of where DB is at, as we grind further and further over the cliff, unto the plummeting crash which has been engineered to destroy Western Civilization, and usher in a new era of Globalist Control.

DeutscheBank-3-year-7-2016

And here’s the original article from four years ago. Look at the charts, and read what I wrote;  See if it doesn’t apply even more so, today?

Deutsche Bank (DB) has had a stream of bad news lately, and there is no upside in sight.  Their one-year return is presently at -19%, and gives no indication that it will break the present losing streak.  With mounting losses, and increased capitalization requirements from new regulations, DB faces the proverbial “rock and a hard place” scenario, where it cannot cover its obligations without selling assets, at the same time regulations require banks to increase assets of proven value.

With all of the European economies printing somewhere between double-dip recession and crushing depression, and the US economy just barely treading water, where would any potential upside for Deutsche come from?  It seems that no one has the answer… and if no answer is forthcoming, and DB takes another round of losses in keeping with the current trend, which is becoming more likely with each passing day of financial losses throughout Europe, then Deutsche faces the prospect of becoming the next Dexia.

Deutsche is the biggest bank in Germany, and Germany is the largest and strongest economy in Europe… so the consequences of any major damage (or cumulative smaller damaging events) to DB would very likely cascade throughout the Euro-Zone, with terminal results.  The echo-effect of any major diminution in DB’s value, or loss of public confidence in the bank, would cause losses throughout the Euro market, which would in turn do further damage to Deutsche (increased default rates on loans, and loss of value on other bank-owned assets in the EU market) – so we have the prospect of a runaway train crash in its most naked state.

Also of interest is that, because DB has such a large footprint in the US real-estate markets (both residential and commercial), the terminal results would be felt here without much delay, as any “restructuring” of Deutsche Bank NA’s “assets” (real estate loans) would cause a flurry of value assessments on the assets (properties) underlying the loans, as part of the “due diligence” process such an event would necessitate.  By this mechanism, any restructuring of Deutsche would likely trigger another major round of real-estate devaluation in the US.  The reality is quite stark: Deutsche will, quite probably, be the trowel by which we unearth the rest of the fraud and mis-valuation in our own real-estate sector… I believe it is only a matter of time before this happens, and see DB as the probable trigger.

In consideration of all this, we need to recognize the model of Deutsche Bank as a likely primer for an Euro-explosion.  They are a functional choke-point, one of the most essential crossroads of the European economy – in America terminology, they are “Too Big To Fail”.  Therefore my recommendation is to watch the news regarding DB’s health with specific attention, as bad news for Deutsche is – without any qualification required – bad new for Europe, and for our economy as well.

WE HAVE BEEN WARNED

http://www.bloomberg.com/news/2012-04-26/deutsche-bank-s-investment-banker-pay-fell-23-in-first-quarter.html

http://www.bloomberg.com/news/2012-04-25/deutsche-bank-says-will-take-257-mln-euro-writedown-for-actavis.html

http://online.wsj.com/article/BT-CO-20120426-718654.html

http://www.bloomberg.com/quote/DBK:GR

Regards,

LT
~ Those who abuse liberty, sentence themselves to death!

      
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4 Responses to Death Throes of Deutsche Bank, and Impact to Global Economies?

  1. David says:

    If Deutsche Bank fails, it would cause the complete collapse of Germany and by extension, the European Union. This article is more important than most readers realize.

  2. LT says:

    Deutsche Bank is not just another domino -- DB is a Man-Hole cover on the table among the dominoes; when it falls, everything other Euro-based entity will be brought down near-instantaneously -- businesses, banks, governments…everything.
    And when the entire economic machine of Euro-land collapses, you can reasonably assume that shock will cripple US Consumer confidence, at just the same time we will need confidence most -- because when Europe falls, all (hungry) eyes will be on us…

    We have been warned.

    LT
    ~He who abuses liberty, sentences himself to death!

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