DB stock is now in a full panic sell-off as I write this. It just hit another new all-time NYSE low on by the heaviest volume ever in the stock since its 2001 NYSE listing. It’s currently down almost 10%. No doubt the Central Banks will try to bounce it.
Deutsche Bank may well be the scapegoat this time around just like Lehman was the scapegoat in 2008. Central Banks in collusion can prevent just one bank from collapsing. It was the co-collapsing of AIG and Goldman Sachs that prompted then-Secretary of Treasury, ex-Goldman CEO Henry Paulson, to put in motion the bailout of the U.S. and European banking system.
Yesterday it was reported that the rate the Fed charges the banks to borrow collateral surged to its highest rate in 7 years – LINK. The rush to borrow collateral was no doubt prompted by OTC derivatives-related counter-party collateral calls. A collateral call is like a margin call in a stock account. This occurs when a derivatives trade goes south for an entity that is on the long side of the derivatives bet – a bet that Deutsche Bank won’t default, for instance – and the counterparty to that trade demands more collateral to be posted in order to insure that the bet can be paid off if the “long side” loses.
The world economy is now at its most dangerous point in history. In virtually every major country or region, there are problems of a magnitude which individually could trigger a collapse of the financial system. Because of the interconnectivity of the system, when the first domino starts falling, there is zero possibility to stop all the other unstable dominoes from crashing one after the other in quick succession.
The world is now staring down a deflationary black hole that is on the verge of sucking into it all global debt of $250 trillion plus unfunded liabilities and derivatives of another $2 quadrillion or so. That would be the end of the financial system as we know it. Governments and central bankers around the world are of course totally aware of this and are standing with their fingers ready to push the button for the biggest money printing bonanza that the world has ever experienced.
Counterparties lose confidence, withdraw cash.
Deutsche Bank, with $2 trillion in assets, amounting to 58% of Germany’s GDP, one of the most globally interwoven banks, with gross notional derivatives exposure of €46 trillion, right at the top along with JP Morgan (booked as €41 billion in derivative trading assets after netting and collateral) – this creature of risk and malfeasance, is finally starting to scare its counterparties.
This is how Lehman came unglued. Slowly and then all of a sudden.
"Wrong Way Gartman"
Nearly a year ago to the day, on September 28th, we wrote “Will Deutsche Bank Be This Cycle’s Lehman Brothers?”
In it we asked, “In 2008, the financial crisis was set-off by the collapse of Lehman Brothers. Could this year’s crisis be caused by a collapse of Deutsche Bank?”
The day after the end day of the Shemitah in 2015, on September 14th, Deutsche Bank announced that it was laying off 23,000 employees, about 25% of its workforce.
At the time, it was trading around $26 per share.
Now, on the eve of the end of the Jubilee Year, Deutsche Bank was down another 7% on Thursday and is now at an all-time low near $11.50.
In extraordinary comments that have gone virtually unnoticed by the media, U.S. State Department spokesman John Kirby threatened Moscow with terror attacks in Russian cities and even shoot downs of Russian jets if Vladimir Putin continued his fight against ISIS in Syria.
“Extremist groups will continue to exploit the vacuums that are there in Syria to expand their operations, which could include attacks against Russian interests, perhaps even Russian cities. Russia will continue to send troops home in body bags, and will continue to lose resources, perhaps even aircraft,” Kirby told reporters at Wednesday’s press briefing, adding that if the war in Syria continues “more Russian lives will be lost, more Russian aircraft will be shot down.”
I recently had a police officer write to me about what they are discovering are the feelings of everyday black people toward whites as well as the police. I removed all the personally identifying information because the police can be so vindictive toward their own.
Contrary to the MSM, Most Blacks Do Not Hate White People
Black lives do matter, but so do all other lives. The organization, Black Lives Matter, founded and funded by former Nazi, George Soros, is a despicable group. Myself and many others have concluded that Black Lives Matter is a fraud as well as a terrorist organization. There only purpose is to stir feelings of racial division that otherwise would not exist to a large degree. And they certainly they do not represent the views of the majority of black people.
The Money GPS:
Last Thursday, September 22, 2016, the body of Ann Korkki, a Senior Administrative Assistant in the Wealth Management division of JPMorgan Chase in Denver, Colorado was found with the body of her sister, Robin Korkki, inside their luxury vacation villa at the Maia Resort on Seychelles, an island in the Indian Ocean off the East African coast. Ann Korkki was 37; her sister Robin was 42.
According to the local Seychelles newspaper, there was no sign of violence on the bodies of the women who were on a one week vacation at the resort. The mother and brother of the sisters are currently in Seychelles “pressing U.S. and local officials for details” and making arrangements to bring the sisters back to the U.S. according to a news report in the Minneapolis Star Tribune, which covered the story because the sisters had attended high school in the area.
William Engdahl recently explained how Washington used the corrupt Brazilian elite, which answers to Washington, to remove the duly elected President of Brazil, Dilma Rousseff, for representing the Brazilian people rather than the interests of Washington. Unable to see through the propaganda of unproven charges, Brazilians acquiesced in the removal of their protector, thereby providing the world another example of the impotence of democracy. http://www.informationclearinghouse.info/article45561.htm
Everyone should read Engdahl’s article. He reports that part of the attack on Rousseff stemmed from Brazil’s economic problems deliberately created by US credit rating agencies as part of Washington’s attack to down grade Brazilian debt, which set off an attack on the Brazilian currency.
On Thursday’s edition of Breitbart News Daily on SiriusXM, former U.N. Ambassador John Bolton criticized Republicans for failing to effectively oppose an Obama policy that has devastating long-term consequences: the surrender of American control over Internet registration.
Breitbart Editor-in-Chief and SiriusXM host Alex Marlow asked Bolton about the impending surrender of Internet control to a multinational body, which Bolton saluted Senator Ted Cruz and some of his colleagues for making an “heroic effort” to block by inserting legislation into the continuing resolution for federal government funding.