Wolf Richter wrote an article yesterday titled:
I’m in Awe at How Fast Deutsche Bank is Coming Unglued
He warns: “Deutsche Bank – “the most important net contributor to systemic risks,” as the IMF put it last week after a lag of several years – is having a rough time. Shares dropped 4.2% today to close at a new three-decade low of €11.63, down 48% since July 31 last year, lower even than the low during the doom-and-gloom days of the euro debt crisis and the Global Financial Crisis.
It’s not the only European bank in trouble. Credit Suisse dropped 1.7% today to CHF 9.92, another multi-decade low, down 63% since July 31. Other European banks are getting mauled too. The European Stoxx 600 banking index dropped 3% today to 117.69, approaching the Financial Crisis low of March 2009….”
I think his main point is that not only is Deutsche Bank (once the world’s biggest bank, already down now to #7 in assets) crashing and failing and in need of a bailout – but that this relatively well run and conservative German bank is just a precursor to many more bank failures not yet brought to our attention.
Note some of Richter’s first words: “systemic risks.” Also think: interconnectivity, contagion, and global economic meltdown. I’m still expecting economic collapse, and many other horrific problems, in the months preceding postponed/cancelled US elections
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