Thursday, September 29, 2016


DeutscheBank's shares have fallen 56% this year, but the real issue over the past couple of days has become survivability.  Despite the German government's statement that there will be no bailout, there will be a bail-out if one is required.  DB will survive.

All of this came about as a result of the U.S. Injustice Department's public speculation as to how much they could soak DB (AND VW!) before the amount affected the survivability of either firm.  Not only a disgrace to the cause of true justice but an incredibly stupid act based on the sheer ignorance of interconnected markets and the incompetence of the State Department in not briefing these thugs as to what the German reaction might be,  It is very, very ugly.  As for Treasury...there sits Jacob/Jack to whom no one listens as to anything...either Over Here or Over There.  Nice guy I am told, but...

By the by, it's not just DB; Commertzbank is not in the best of shape either.  For that matter, no one really knows what's the real condition of any German Bank.   Opaque is a word that translates wonderfully into German.  And if the financial world can't trust the Germans...well, just who can you trust?

So in the end, go back to bed which is where I am going.  DB will not fail because the result of such an act would be the collapse of the European banking sector and the dissolution of the European Union.  Nonsense like this makes me feel even worse.


  1. Well, I remember folks saying LEH would be saved at the end of the day too. Didn't happen.

  2. Bailout of DB would be the end of Merkel.