Category: Financial Crisis 2016
The analysis published under this category are as follows.
Tuesday, December 13, 2016
Italy’s Banking Crisis Is Nearly Upon Us / Economics / Financial Crisis 2016
By: John_Mauldin
There is a high degree of probability (approaching 90%, I’d say) that Italy will experience a severe banking crisis in the next few quarters. Perhaps they can stave off the problem for a year, but something will have to be done about the banks.
Italian GDP per person lagging the rest of Europe
Italian citizens haven’t had much fun the past decade, judging from their GDP. You can see on the left side of the chart below that GDP per person has lagged the EU since 1995. Worse, it kept falling after 2009, even as Italy’s neighbors recovered.
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Saturday, December 10, 2016
Inevitable Global Ruin: Top Hedge Fund Managers Sound the Alarm / Stock-Markets / Financial Crisis 2016
By: Jeff_Berwick
When monetary control is centralized, as it is today, prosperity withers. The Wall Street Journal just surveyed top hedge fund managers and found a significant belief that full-fledged, global ruin is on its way. Tamper with freedom, monetarily or otherwise, and you end up facing catastrophe.
That’s just where we are today.
The managers pointed directly at the purposeful monetary mismanagement of central banks around the world. These central banks large and small are pumping oceans of money into financial markets as well as lowering rates until they are actually negative, which has never happened before in recorded history.
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Sunday, November 27, 2016
Italian Bank Collapse European Sovereign Bond Carnage, Criss-Crossed Fuses & Lit Bonfire / Interest-Rates / Financial Crisis 2016
By: Jim_Willie_CB
Many are the potential fuses to be lit, which would create the conflagration, the massive bonfire of the bond vanities and bank charades. Many are the fuses lying around, all criss-crossed, all exposed, all overlapping each other in highly dangerous manner. If any single fuse is lit, then several will light and the detonation arrives. It is unavoidable since the financial world is so deeply interwoven. Never in modern history has the global financial structure been so badly weakened, so totally corrupted, so thoroughly undermined by control mechanisms, so intensely defended by sanctions even war. In 2007 and early 2008, the Jackass warned of a mortgage bust that would alter the global system forever. It happened with far reaching consequences which endure to this day.
Monday, November 14, 2016
Crisis Is Coming: The Elites Plan To 'Steal' Your Money / Stock-Markets / Financial Crisis 2016
By: ....
I call it the 'Ice Nine Plan'...
And if I'm right, it could give the financial elite total and absolute control over you and every single penny you own during the next financial crisis.
Look, in my mind there is no doubt we're heading towards disaster...
Wednesday, November 09, 2016
Financial Markets were caught flat-footed. Will there be a recovery? / Stock-Markets / Financial Crisis 2016
By: Anthony_Cherniawski
The markets woke up this morning to President-elect Trump.
ZeroHedge reports, “As it dawned on markets that they had been caught flatfooted for the second time in half a year, first with Brexit and then with the historic election of Donald Trump which nobody except a few fringe websites had anticipated, their reaction was identical: a slow selloff at first, followed by a furious dump, which led to a limit down halt in NASDAQ and Emini future trading. However, it was not meant to last, and after realizing that Trump's economic plan of flooding the economy with debt, coupled with fiscal stimulus, and that his policies would likely be much more moderate than his initial framing, U.S. stock-index futures trimmed about two-third of their declines as investors reassessed Trump stunning victory.”
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Friday, October 07, 2016
Pound Sterling Flash Crashes. Is the SPX Next? / Stock-Markets / Financial Crisis 2016
By: Anthony_Cherniawski
Good Morning!
Last night’s flash crash in the Pound Sterling should not take us by surprise. It was merely fulfilling its Bearish Pennant objectives. In addition, it was within a Wave 3 of (3) scenario, which would tell us that there would be large gaps in trading as it descends.
ZeroHedge reports, “U.S. equity index futures fell, with European, Asian stocks also declining before the September payrolls data, following the stunning 2-minute "flash crash" meltdown in sterling which plunged as much as 6.1%, the most since Brexit and is set for its biggest weekly loss since 2009.
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Tuesday, October 04, 2016
WARNING: the Bond Markets Are Signaling Something MASSIVE is Coming / Interest-Rates / Financial Crisis 2016
By: Graham_Summers
To understand the financial markets, you need to understand the hierarchy of asset classes.
That hierarchy is as follows:
Globally, the stock market is about $69 trillion in size, trading about $191 billion in shares per day.
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Tuesday, October 04, 2016
Deutsche Bank - The Next Financial Crisis Will Come from Europe! / Stock-Markets / Financial Crisis 2016
By: Chris_Vermeulen
A financial system stability assessment report, from the International Monetary Fund (IMF), on one bank in Europe identified Deutsche Bank AG (NYSE: DB), as the TOP bank that poses the greatest systemic risk to the global financial system. Systemic risk was identified as a major contributing factor in the ‘financial crisis’ of 2008. This is essentially the risk of contagion by the failure of one firm leading to failures throughout its’ industry.
Tuesday, October 04, 2016
Deutsche Bank Could Be the Demise of Germany / Stock-Markets / Financial Crisis 2016
By: Harry_Dent
The first bad news broke following the third quarter of 2015. Deutsche Bank reported a loss of $7 billion. The news just keeps coming with low or negative earnings thanks to bad loans in Germany and abroad.In my February 19, 2016 edition of The Leading Edge, I issued a clear and stern warning about Deutsche Bank and about a second banking crisis looming. I explicitly said…
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Monday, October 03, 2016
Deutsche Bank #1 Systemic Risk at $100 Billion (BNP Paribas 2nd, Societe Generale 3rd) / Companies / Financial Crisis 2016
By: Mike_Shedlock
Inquiring minds may be interested in a cornucopia of relevant numbers on Deutsche Bank including market cap, leverage, capitalization, deposits, liquidity, derivatives multiple ways, and systemic risk.
Systemic risk numbers are from Nobel Laureate Robert Engle.
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Monday, October 03, 2016
Central Banks’ Bank Warns That China Could Cause Global Crisis / Stock-Markets / Financial Crisis 2016
By: John_Mauldin
I’ve been saying for the past couple of years that the next recession in the US will probably be triggered by an external macro event or cascade of events, coming out of Europe or China.
Ambrose Evans-Pritchard of the London Telegraph sharpens the focus on China. He writes about the recently released quarterly report of the Bank for International Settlements (“the central banks’ bank”). The report repeats Michael Pettis's warning that China faces growing risk of a major debt and banking crisis.
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Monday, October 03, 2016
As Predicted, Deutsche Bank Is Failing, ATMs Go Dark on Jubilee End Day / Companies / Financial Crisis 2016
By: Jeff_Berwick
On Friday, Deutsche Bank’s stock (DB:NYSE) rose 14% on rumors that it had negotiated a settlement with the US Department of Justice’s demand for $15 billion (which is the entire market capitalization of Deutsche Bank) down to $5.6 billion (which would still decimate Deutsche Bank).
Well, it turns out that rumor was completely unsubstantiated.
There is no settlement. And it’s just amazing that the US Dept. of Justice, knowing that Deutsche Bank’s failure would rip the heart out of the European banking industry, is pushing ahead with their demands anyway.
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Sunday, October 02, 2016
Deutsche Bank - Signs of Stock Market Panic! / Stock-Markets / Financial Crisis 2016
By: Gordon_T_Long
John Rubino and Gordon T Long discuss the unfolding mayhem in the European banking sector and specifically what is behind the panic selling in Deutsche Bank stock.
Friday, September 30, 2016
I Don’t See How Germany Can Contain the Deutsche Bank Collapse / Companies / Financial Crisis 2016
By: Graham_Summers
Let’s talk about Deutsche Bank (DB).
Deutsche Bank is the 11th largest bank in the world. It has assets of $1.8 trillion and over ~$60 trillion in derivatives on its books.
From a balance sheet perspective, DB’s balance sheet is 50% the size of Germany’s GDP. By way of comparison, imagine if JP Morgan was a $9 TRILLION bank. That’s effectively DB’s status in Germany.
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Friday, September 30, 2016
It’s Not Just Deutsche Bank. The Whole Financial Sector Is Dying / Companies / Financial Crisis 2016
By: John_Rubino
These are great times for financial assets — and by implication for finance companies that make and sell them, right?
Alas, no. Just the opposite. Each part of the FIRE (finance, insurance, real estate) economy is imploding as “modern” finance hits the wall.
Interest rates, for instance, have fallen for three decades…
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Friday, September 30, 2016
Deutsche Bank Hangs By A Thread On Eve Of Jubilee / Companies / Financial Crisis 2016
By: Jeff_Berwick
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?”
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Wednesday, September 28, 2016
Is a “$46 TRILLION” Lehman Brothers Event Just Around the Corner? / Companies / Financial Crisis 2016
By: Graham_Summers
The financial world is abuzz with talk of the first Presidential debate.
Meanwhile, one of the largest derivatives books in the world is imploding.
Deutsche Bank (DB) is the 11th largest bank in the world. And it has over $61 TRILLION (with a “T”) in derivatives on its books.
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Friday, September 23, 2016
The Fed’s Market Myth is Unraveling Before Our Eyes… Bloodbath Coming / Stock-Markets / Financial Crisis 2016
By: Graham_Summers
So much for the narrative.
The latest myth being promoted in economic circles is that median income growth exploded higher last year. The people promoting this myth obviously didn’t bother reading the actual report and don’t understand what the word “median” means.
A big hat tip goes to John Williams who actually DID read the report and found that the Census has adjusted its methodology to include what interest income WOULD be if rates were not at zero.
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Friday, September 23, 2016
Are Your Savings Safe? U.N. Warns Next Financial Crisis Imminent / Stock-Markets / Financial Crisis 2016
By: GoldCore
Savings Guarantee? U.N. Warns Next Financial Crisis Seems Imminent
“There remains a risk of deflationary spirals in which capital flight, currency devaluations and collapsing asset prices would stymie growth and shrink government revenues. As capital begins to flow out, there is now a real danger of entering a third phase of the financial crisis …”
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Friday, September 16, 2016
The Financial Crisis Is Escalating! / Stock-Markets / Financial Crisis 2016
By: Chris_Vermeulen
Deutsche Bank and Commerzbank are presently in the process of merger talks. The fact that these meetings are occurring is a signal that Germany’s banking troubles are indeed accelerating.