This article was written by Michael Snyder and was originally published at his Economic Collapse blog.
Editor’s Comment: How many times is the entire house of cards going to be on the brink of collapsing into disaster? We are all living in some kind of grand social experiment where we live and die by Russian roulette, and until then, kick the can down the road indefinitely, with the invincibility complex of someone who has dodged a bullet. There is no question whatsoever that the monetary policies of most central banks of the world, and the practices of the big banks are destroying the wealth of the middle class and the opportunities of ordinary people.
As they light another gasoline fire, the arsonists leave one institution after another ready to burn to the ground, and topple over onto another victim to pass along the chance for destruction. The risky actions of these bankers have left us all exposed, and it is about to go over like a powder keg, destroying jobs, investments and much, much, more in the process. Get ready, and hold on, because this stuff is going to set in, and can’t be swept under the carpet forever.
Deutsche Bank Profit Plunges 98 Percent As The Outlook For ‘The World’s Riskiest Bank’ Darkens
by Michael Snyder
The biggest and most important bank in the biggest and most important country in Europe continues to implode right in front of our eyes. If you follow my work regularly, you probably already know that I issued a major alarm about Deutsche Bank last September. Subsequently, Deutsche Bank stock hit an all-time low. Then I sounded the alarm about Deutsche Bank again back in May, and once again that was followed by another all-time low for Deutsche Bank. And then I warned about Deutsche Bank again in early June, and you can probably imagine what happened after that. Over the past year, this German banking giant has literally been coming apart at the seams, and in so many ways it is paralleling exactly what happened to Lehman Brothers back in 2008.
Today, we got some more bad news from Deutsche Bank. Compared to the exact same period last year, profits were down 98 percent. A nearly 100 percent drop in net income spooked a lot of investors, and Deutsche Bank shares got hit hard on Wednesday. Of course Deutsche Bank shares are already down by more than half over the past 12 months, and the financial sharks can smell blood in the water.
Just like Lehman Brothers in 2008, Deutsche Bank is essentially in panic mode at this point. They recently announced that they will be closing 188 branches and that 3,000 workers will be losing their jobs. But this could just be the beginning of the layoffs at the bank. According to some reports, the bank could cut up to 35,000 jobs by the year 2020, and CEO John Cryan recently admitted that they “may have to accelerate cost-cutting measures“.
What makes all of this even more alarming is that Deutsche Bank is widely considered to be “the most dangerous bank” on the entire planet. The following comes from a CNN article posted just today entitled “The world’s riskiest bank is in trouble“…
What is going on with Deutsche Bank?
Germany’s biggest lender was dubbed the world’s riskiest bank by the International Monetary Fund last month, just as one of its U.S. businesses failed a Federal Reserve stress test.
Its shares are down 45% this year, and on Wednesday it said second quarter profits were wiped out by a 98% slump in earnings. The stock fell 2.5% in Frankfurt.
The primary reason why Deutsche Bank is “the world’s riskiest bank” is because of the mammoth derivatives portfolio that is possesses. It currently has 42 trillion euros of exposure to derivatives, which is an amount of money about 13 times the size of the entire German economy.
When Deutsche Bank finally goes down for good, it is going to be “the shot heard around the financial world”, and it will be a disaster many times greater than the collapse of Lehman Brothers in 2008. Just consider what Jeff Gundlach had to say about the bank earlier this year…
“Banks are dying and policymakers don’t know what to do,” Gundlach said. “Watch Deutsche Bank shares go to single digits and people will start to panic… you’ll see someone say, ‘Someone is going to have to do something.’”
As I write this, shares of Deutsche Bank are sitting at just $13.63, and many experts are having a very difficult time finding any reason for optimism. In fact, Edward Misrahi has stated that the bank is his number one short trade, and Jim Collins says that “it is just impossible” to recommend buying shares of Deutsche Bank even at this depressed level…
As an equity analyst, it is just impossible to recommend shares of a bank that is not growing revenue. So really, Deutsche is an untouchable, and the stock market is trying — to the tune of a 58% decline in DB’s market value in 12 months — to recalibrate Deutsche’s market capitalization to the true value of its assets net of liabilities. That’s a painful journey.
I don’t mean to just pick on Deutsche Bank. Certainly there are a lot of other major banks around the globe that are also teetering on the brink right now. Just take a look at Italy. Basically their entire banking system is in the process of melting down.
But the utter collapse of Italy’s banking system won’t have the same kind of worldwide impact that the collapse of Deutsche Bank will.
Unlike some of his predecessors, CEO John Cryan is being honest about some of the struggles that Deutsche Bank is going through right now, and he admits that they may need to be “more ambitious in our restructuring”. The following comes from Business Insider…
Cryan said in a statement (emphasis ours):
“We have continued to de-risk our balance sheet, to invest in our processes and to modernize our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring.”
He said something similar in a note to employees (emphasis again ours):
“Here I would like to speak plainly. If this weak economic environment persists, we will need to be still more ambitious in our restructuring. We will do everything in our power to accelerate the measures we have already planned.”
Yes, I know that the stock market in the United States has been setting all sorts of all-time record highs lately.
But that doesn’t change what is going on in the rest of the world one bit.
The financial crisis that has been gripping Europe, Asia, South America and most of the rest of the planet since the second half of last year is accelerating.
And it is inevitable that the U.S. is going to be experiencing some very real pain in the not too distant future as well.
So even though things may seem a bit quiet this summer in the financial world, the truth is that there is a whole lot going on under the surface.
Deutsche Bank is one glaringly obvious example of this, but there are many others all over the globe. And not too long from now, the dominoes will begin to fall very rapidly.
This article was written by Michael Snyder and was originally published at his Economic Collapse blog.
Michael T. Snyder is a graduate of the University of Florida law school and he worked as an attorney in the heart of Washington D.C. for a number of years.
Today, Michael is best known for his work as the publisher of The Economic Collapse Blog and The American Dream.
If you want to know what is coming and what you can do to prepare, read his latest book [amazon text=Get Prepared Now!: Why A Great Crisis Is Coming & How You Can Survive It&asin=150522599X].
The Devil is getting ready to make a deal for your………………..
Banks will never fail when they can just print money.
When your derivatives exposure is 13 times greater than your whole county’s economy you cant print that kind of money. You can try but its value will be next to zero. Someghings are just too big to overcome.
You have never heard of Zimbabwe ? or the German mark in 1920’s ? or the Hungarian pingo ? And there are numerous more cases of hyper inflation.
Paper, with ink on it, is unlimited. The essential quality of money is that it is a store of value, and when unlimited quantities of money appear, the store of value (faith) is destroyed. Wall Street has been able to have Congress pass legislation that derivatives (created by Goldman Sachs and purchased by Deutsche Bank) has priority debt status during bankruptcy. Your nest egg will be worthless but hedge funds and banks (read Wall Street) will line up at the printing press.
The Federal Reserve system, if you understand it, is a (privately owned corporate Board of Governors controlling 12 FR bank franchises) Ponzi scheme that must endlessly issue new debt or the house of cards collapses. You have been witnessing the exponential increase in national debt to feed the Ponzi scheme.
Wall Street is accused of currently embezzling $6 billion daily from the US government to fund nefarious acts which include acquiring control of government entities. There is no other viable destination for the funds. The relevant client accounts have never been audited. Audits of the Fed are conducted according to BOG guidelines. Ref. http://www.scribd.com/doc/48194264/rip-off-by-the-Federal-Reserve-revised .
The embezzled funds are alleged to have been used to create world-wide economic chaos and endless “civil war” and terrorism. Kermit Roosevelt used CIA funds in 1953 in the first operation to create domestic chaos in Iran. The pattern of terrorism has been used worldwide since then and makes daily headlines. The jeopardy of nuclear war comes freely from the media. The ultimate goal is economic control of the whole world—or its self-destruction. Ref.
There will never be a change if the source of the problem is not identified.
An interesting compilation of national economic disasters created by profit seeking “financiers” assisting various historic rulers to inflate their monetary system which resulted in rebellion and violence against the financiers is written by Benjamin Ginsberg in FATAL EMBRACE: …(financiers) AND THE STATE.
I had not been aware the Magna Carta resulted from the Barons’ refusal to fund and staff an invasion of Normandy which London financiers had induced King John to initiate for the profit of the financiers. War mongering for profit is nothing new. Ben chastises the Barons for ruining the economy of London. To Ben’s chagrin, the financiers were subsequently deseized, physical abused, and exiled.
Sometimes justice prevails.
Most Bank Failures are because of Deregulation. You know when the Fascist Financial Corporations install their political puppets to relax laws and policy, so the Banks can do risky business without any accountability of oversight.
When US banks got out of traditional banking in the late 1980’s, consolidated and started trading your assets on the open markets, pumping up assets beyond any normal values, doing risky loans, credit default swaps, derivatives, bad mortgages, junk bonds, defrauding investors with BS smoke and mirror financial reporting. You know pump and dump, and creating the too big to fail.
The best medicine is to never bail out failure. Let the banks fail, and new institutions will rise from the ashes to take their places. Well not with our current Central Banking Clan with their grip on Nations Political Hacks in charge. They will make the depositors, investors and Tax payers pick up the damage bill of goods, while the baking hacks lavish themselves with bonuses, and bigger paychecks. A long strong rope is what needed. Or look to Greenland, who jailed the bankers and wipe the debt off the books.
Lets see if the leaders here in the US, have got any balls to let them fail this next time and follow Greenland as an example. If they don’t expect more of the same.
Germans must start to cleanse their country and this time for real. Their economy can and will dominate Europe once the ransom stops to the tribe that has sucked their blood for decades. Such cleansing also includes the muslim foot soldiers of the zionists occupiers named ISIS. If Germans wants to survive show no mercy.
They were the only people brave enough to try. Or stupid enough to try. We have no idea how much money these people have to pay armies and buy weapons and manipulate the media. O wait yes we do they already did it in WW2 . And people still believe the lies. And salute our brave victors or brainwashed well paid idiots that got us in this mess. They sacrificed their lives to get what we have now . People like barbera Lerner specter ruling the world. Telling us what’s good for us . And we powerless to stop them. Who’s to blame except the idiots that believe the lies. Will God punish them for being easy to manipulate idiots. Or just wanting that army paycheck during a depression. And was the depression purposely caused to fill the ranks. Just like the one in 2008 to fill the ranks for Iraq.? How totally manipulated are we? Everything said good is bad . Everything said bad is good? Satans greatest weapon is the lie . And he rules this world. But not for long.
Amen Lone W.
“Satans greatest weapon is the lie . And he rules this world. But not for long.”
What else is related to the “Great Sham”?…
Bond market manipulation
Unlimited printing of worthless Fiat currencies
No real wealth creation
Corporation buying their own equities to artificially create a false perception
Endless wars and the proliferation of more wars
Government unconstitutional mandates like Obamacare
Illegal alien invasions/Cloward Piven chaos
Now what’s worse?…The Government solution
Live Free or Die…doesn’t matter what’s in your wallet
“Government unconstitutional mandates like Obamacare.”
So far SCOTUS says it is Constitutional.
The base of the ACA is not a ‘mandate’ but is legislation passed by both branches of Congress and signed into Law by our President.
I don’t like it – personally think it is un-Constitutional for the Government or anyone else to force you to buy something. Lipstick on a pig to call it a Tax, Chief Roberts.
We still have to make an honest run at repealing it before we burn everything to the ground.
Unfortunately, Rumptard won’t undo Obummercare if elected. Rump wants a single payer. But no one wants to accept he is a true liberal. And sure as hell Hildebeast won’t get rid of it. We are stuck with it or worse.
Trump to my knowledge wants HSA’s and controlled healthcare cost it should not cost 23k to have a baby naturally in a hospital for a freakin 2 night stay or 5k to have a cat-scan or Mri
Are you serious about those prices? I can’t believe the illegal aliens that represent about 20% of my state’s population have paid anywhere NEAR that…
Watch . The biggest scam in the world reveiled . Ken O,Keef. He explains the FED pretty quick.
What’s worse, is so worse, it gives rise to the need to create lesser, albeit more familiar and more comforting, terribleness.
the coming World War III. And with shit heads like Obama and Hillary, we will loose.
SNYDER again? ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ!
Hiya Braveheart1776, great name friend.
Can we put you down for like, voting Hillary?
Boy, I sure do hope so.
Hillary, Hillary, Hillary, Hillary, WOOOOOOHOO, Hillary, Hillary, Hillary, Hillary…
How does this dumbass keep making predictions? Not one has come true yet. Where is the 2015 economic collapse he predicted?
••••• the Banks of Europe and the United States•••••••
The System of corruption called banking is Organized Crime.
The usury practiced by International J*ws keeps them in a position of power.
At what point does this Satan centered conspiracy collapse?? G☺️D KNOWS.
Satan centered conspiracies don’t collapse, they just oppress.
Actually, this bank is in real big trouble. It will close, unless bailed out. I don’t know if the EU has enough to bail it out. Let it fail. Let’s get the show on the road.
The US Fed Res will do the bailout.
Anything to keep BAU alive…
Markets today are sending mixed signals. Silver however is up 12%? The PTB use silver and gold to manipulate currencies. To see them losing control of silver is a big tell. Silver is always the one to break free of manipulation first because supply and demand are so tight.
The German economy was the strongest in the EU and was the Euro’s anchor.
All wars start out financial. Keep stacking, keep watching.
Watch The biggest scam in the world reveiled. Ken O keef And wonder how these rats can live with themselves. And who is helping them get away with this. What army do they have . Should we thank our vets.
And when they finally pull the plug and steal your entire bank account. Get ready if you complain. For . Jewish Bolshavik bestial torture methods. H was right. See it on video. O it might be best to just bend over and get use to it . The children of Satan rule.
The Zionists only rule what you allow them to rule. Nobody says you have to play by their rules. Get off their fascist Grid and enjoy your freedoms. That means do Not carry any debt, or trade in their currency, deposit your wealth in their Phony banks, and do not buy their clothing, Phony News Papers, or Cable TV BS propaganda. And as far as their Laws? There is no crime if there is no victim. Jury Nullification,… Learn it live it.
Let it be written, let it be said. Evil has came upon us & death shall follow.
I am, always have been, always will be of the mind “to take off a band-aid – do it quick in one motion (rip it off)”. I’m so sick of these ‘dire’ warnings, the thought processes of “maybe something can be done”. Bull. Let it ‘rip’ as I said. Let it bleed once torn off (down in the case of this false edifice of economic psuedo-progress)and let’s get it over with.
As for comments about some Zionistic plot, or the influx of Muslim terrorists – an invasion is an invasion. Best defense, so I’ve been told, is a good offense. And man oh man, I feel pretty damned offensive right now. Am I offending any of you? I hope so.
Get this party going.
Do only kooks and dummies post here?….heh
Are you a new troll?
Not me. I’m an old hand.
They’re the only ones hicks, er, I mean Mac don’t censor.
Hopefully their death!
Apparently, you do…
Contrarian logic here:
They can’t let it go down. To let it go down would be like dropping an antimatter bomb on the Earth.
Therefore it won’t. They’ll do literally anything.
Therefore its stock will go back up.
It simply has to happen. If it does not… well then the money you invested in stocks would be worth toilet paper in any event… so…
“How many times is the entire house of cards going to be on the brink of collapsing into disaster?”
This is indeed true so how would we know if today is that day or that now is a good time to be running for the hills and buying gold ?
Now I know all the black bros, muzzies and criminals will be coming for my loot when it does crash because the government keeps telling me that i cannot live without Mr Police officer who are as corrupt as they come and can murder people at will and get away with it and i will just have to grow some balls to defend whats mine.
I will also be telling the banks that i owe money to that they can stick the debt where all the money for my pension has gone and will cancel the direct debit payment to pay rent on the mud that my house is built on and won’t be paying any taxes into a fixed system where none of us get any say.
The risks is worth the rewards so bring it on because if we don’t stop the bankers than sooner or later a lot of nukes are going to be flying around as they cull the population because they now have robots and A.I to do our jobs.
I thought this article was going to be about Deutsche Bank, but it’s not. It’s about Michael Snyder.
Nothing is going to happen. The world is going to stay the same. Nothing but loonies on this site.
You’re all touched in the head feeding each others fears of boogie men.
You have been doom and glooming for decades now and in this internet age its no different.
Quick buy some more water filters!!!!
have fun paranoid schizos!
The company I work for has been waiting to get paid by Deutsche Bank for three months. Good luck getting anything now.
Here in Australia as part of our wages, employees MUST contribute by law 9.5% to Super. Some employers contribute more and employees are also encouraged to tip in too. We call it Superannuation. You cannot get at it until you retire at around 65+ years of age. But, There is also Self Managed Super Funds which are rigorously audited which you yourself can manage. There is also a scheme called ‘Transition To Retirement’, which is available if over 55 yo age (?). You can apply to your fund to have 10% draw down yearly. ie, You have $200,000 in your Super, you put $100,000 into TTR and receive a lump sum of $10,000 per year or you can nominate to receive it weekly, fortnightly, monthly, 6 monthly or yearly. We receive ours yearly at tax time (around 30th June). We use it on things we deem are necessary. Technically it’s our money to do what we like. Just before it was paid, we received a letter to say that DUE TO BREXIT uncertainties it would not be paid for another two weeks because of interest calculations?? This is how quickly things can change monetary wise. BREXIT had nothing to do with Australia but it still affected us because our Super is exposed to International markets.
Sorry, first line should read EMPLOYERS (not employees) MUST contribute 9.5% to Super….
For those of you who commented that only loonies post here and that the world will remain the same must have been asleep for the last 15 years. The world has changed beyond recognition since 911. Everywhere you look there is financial trouble or war or indeed rumours of war. It seems that there is no end to chaos and the relatively stable period I remember in the 80’s is like a distant memory.
I don’t get it; Whaddaya mean the economy’s in the shitter? What about all those wonderful muslims Germany brought in? Aren’t they earning and spending and making everything wonderful? Not so much?
What about the native population? Why aren’t they going out and spending spending spending? Hmmmmm…..maybe they’re tightening their belts, in preparation for….I dunno, civil war?