Attempt to Gap Up and Go FAILURE...
Posted 23 September 2016 - 11:40 AM
Attempt to Gap Up and Go FAILURE...
Posted 23 September 2016 - 11:52 AM
GS now trading below Fed day pivot low......
The strength of Government lies in the people's ignorance, and the Government knows this, and will therefore always oppose true enlightenment. - Leo Tolstoy
Posted 23 September 2016 - 11:54 AM
DB’s $75 trillion derivative problem
Once Britain moved out of the house, things began to get testy in the European Union. Italy’s prime minister Matteo Renzi took a shot across the bow of German central banker Jens Weidmann yesterday. He alluded to problems within the German banking sector and “the hundreds and hundreds and hundreds of billions of euros of derivatives,” according to Reuters.
Ouch. He was, of course, referring to the notional derivatives exposure of Deutsche Bank (DB). That exposure is around $75 trillion, which is a big number. It’s 20 times German GDP, slightly more than GDP for the entire world, and greater than the total market value of all the listed stocks in the world (according to World Bank data
Edited by SemiBizz, 23 September 2016 - 11:54 AM.
Posted 23 September 2016 - 11:59 AM
Posted 23 September 2016 - 12:02 PM
Deutsche Bank is the riskiest bank in the world, according to the US Federal Deposit Insurance Corporation
Posted 23 September 2016 - 12:02 PM
Posted 23 September 2016 - 12:17 PM
It's old news, but it's not going away, just like Lehman Bros didn't "just go away"...
"Deutsche Bank Poses The Greatest Risk To The Global Financial System": IMF
Posted 23 September 2016 - 12:45 PM
Where is the most likely severe collateral damage initially?
Europe, and then China - Europe and not the U.S. is China #1 Customer....
Posted 23 September 2016 - 12:51 PM
Foreign debt and banking problems will only serve to chase money into the US markets. If you remember back to Dec 2014 the bill that was pushed thru Congress in the wee hours of the year gave the risk to US institutions holding derivatives (w/ counter party risk) to the US government. This is a very strong firewall to prevent EURO banks (and Japanese financial system) from dragging the US financial system down with them. Money from all over the globe is going to flow into US assets (which will create its own problems but that for a later time).
Posted 23 September 2016 - 12:53 PM
It's not that Trillions is leaning all one way. You can be sure that it's offset upon offset upon offset.
The problem is, if DB goes teats-up, what's the counter-party risk and how far down stream does it cascade? Even a small portion of that number is a lot of unaccounted-for exposure.
Bankers have proven, plainly, that they really don't understand real risk management, especially when it comes to derivatives.
M
Mark S Young
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