Martin Armstrong writes in his blog “Deutsche Bank is in crisis and everyone has known that. Its derivative book is hard to quantify what is the real net bottom line. The only bank it could have been merged with was BNP but that was French and they cannot allow cross-border capital flows in bailouts. That left Commerce Bank, but they too have a lot of the same problems.
The two will be merged WITH government assistance covered up. As I have warned, Deutsche Bank is the biggest bank in Europe. I failed to see how Germany could allow it to collapse, Hence, this merger has to be accomplished with government aid – the very thing they tell Italy they cannot do. – Merkel had to blink.
(No the following chart is not of bitcoin…. it is of deutsche bank)
(Comparison of DB and Lehman brothers)
Inspite of an expectation of such big bailout…The falling yields on German government debt is simply intensifying the trade to buy German and short everything in the South in anticipation of a failed Euro. It really a stretch to claim yields are declining in Germany because the expect lower rates at the Fed. This is purely a speculative punter’s play – not a shift in strategic portfolios. Italy’s budget battle with Brussels remains a concern as is the case with BREXIT. There is just a growing lack of confidence in Europe (this is the only reason they are paying such low yields… there is capital flight from rest of Europe into Germany) .I do not believe that any fundamental pattern implies such a shift at the Federal Reserve as the reason for capital movement within the Eurozone market.”