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Harry Dent: Everything You Need to Understand On Why Deutsche Bank is Crumbling (Video)
In the following interview, Gary Franchi of the Next News Network interviews Harry Dent on the subject of why Deutsche Bank is the most toxic bank on the planet, and how it affects you in the United States.
In his initial response to the question of what makes Deutsche Bank so toxic by itself, Harry Dent replies by explaining that Deutsche Bank’s loan portfolio is incredibly high risk, including but not limited to the fracking market in the U.S. which was relying on $100 barrels of oil. If you haven’t looked recently, oil is currently selling at around $40 a barrel, so those loans are as good as dead. It’s not just U.S. markets either, Deutsche Bank’s European loan portfolio is awful too. In addition, their exposure to derivatives is also among the highest of the banks.
As a result of its poor performance, Deutsche posted a $7 Billion loss in the 4th quarter of last year, and 1st Quarter of this year they were lucky to break even at $0. All of that doesn’t even take into account the fact that we’re heading into a major global economic crisis.
Originally, some economists thought that Deutsche Bank would not get any bailout money from the central banks, but rather would depend on Italian banks. Unfortunately for Deutsche, on average Italian bank loan portfolios are at 18% non-performing. Considering most banks only keep 10% assets on deposit to cover losses, that puts most of them in bankruptcy any time now.
If you recall, back in February, Dr. Jim Willie warned that when Deutsche Bank falls, Barclays, Citigroup, and many more will fall like dominos with it, and already we’re seeing major bank failures in Europe and Japan. Harry says the only market that can keep going up under these global conditions is on crack, and U.S. markets are on just that… crack! The crack he’s referring to is all the borrowed cheap money that is inflating the biggest financial bubble in history. When it finds the pin it’s been searching for, investors can get wiped out over night.
Not since 1929-1932 has the market been set for this big of a nosedive. Harry warns of a once in a lifetime crash coming, so he suggests selling everything you own now, and then waiting the market out. He believes that in about two years stocks will be trading at 10-20% of what they are now, and then it’s time to going on a buying spree.
Harry’s theory is a sound one except in one situation, and it happens to be a very likely one. Even if a person sells everything now, and assume they realize huge gains, when the Dollar collapses (and it will), if those gains are held in U.S. denominated assets, they’ll be wiped out just as if they were in stock. It might be wise to look to into tangible assets as a means to store any gains made. Sure, there’s volatility there, but that beats a nosedive!
FOR MORE ON DEUTSCHE BANK:
Dr. Jim Willie: Deutsche Bank Valued at -$1 Trillion; Economic Chaos Ahead
Dr. Jim Willie: Brexit Result Could Detonate Deutsche Bank!
Dr. Jim Willie: Deutsche Bank Could Very Well Collapse Entire Banking System
Dr. Jim Willie Predicted It; Deutsche Bank Admits to Rigging Gold Markets
Dr. Jim Willie: When Deutsche Bank Fails, Barclays, Citigroup, and More Will Fall Like Dominos
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On Deutsche Bank, Michael Snyder Writes:
The biggest and most important bank in the biggest and most important country in Europe continues to implode right in front of our eyes. If you follow my work regularly, you probably already know that I issued a major alarm about Deutsche Bank last September. Subsequently, Deutsche Bank stock hit an all-time low. Then I sounded the alarm about Deutsche Bank again back in May, and once again that was followed by another all-time low for Deutsche Bank. And then I warned about Deutsche Bank again in early June, and you can probably imagine what happened after that. Over the past year, this German banking giant has literally been coming apart at the seams, and in so many ways it is paralleling exactly what happened to Lehman Brothers back in 2008.
Today, we got some more bad news from Deutsche Bank. Compared to the exact same period last year, profits were down 98 percent. A nearly 100 percent drop in net income spooked a lot of investors, and Deutsche Bank shares got hit hard on Wednesday. Of course Deutsche Bank shares are already down by more than half over the past 12 months, and the financial sharks can smell blood in the water.
Just like Lehman Brothers in 2008, Deutsche Bank is essentially in panic mode at this point. They recently announced that they will be closing 188 branches and that 3,000 workers will be losing their jobs. But this could just be the beginning of the layoffs at the bank. According to some reports, the bank could cut up to 35,000 jobs by the year 2020, and CEO John Cryan recently admitted that they “may have to accelerate cost-cutting measures“.
What makes all of this even more alarming is that Deutsche Bank is widely considered to be “the most dangerous bank” on the entire planet. The following comes from a CNN article posted just today entitled “The world’s riskiest bank is in trouble“…
What is going on with Deutsche Bank?
Germany’s biggest lender was dubbed the world’s riskiest bank by the International Monetary Fund last month, just as one of its U.S. businesses failed a Federal Reserve stress test.
Its shares are down 45% this year, and on Wednesday it said second quarter profits were wiped out by a 98% slump in earnings. The stock fell 2.5% in Frankfurt.
The primary reason why Deutsche Bank is “the world’s riskiest bank” is because of the mammoth derivatives portfolio that is possesses. It currently has 42 trillion euros of exposure to derivatives, which is an amount of money about 13 times the size of the entire German economy.
When Deutsche Bank finally goes down for good, it is going to be “the shot heard around the financial world”, and it will be a disaster many times greater than the collapse of Lehman Brothers in 2008. Just consider what Jeff Gundlach had to say about the bank earlier this year…
“Banks are dying and policymakers don’t know what to do,” Gundlach said. “Watch Deutsche Bank shares go to single digits and people will start to panic… you’ll see someone say, ‘Someone is going to have to do something.’”
BE SURE TO CHECK THELASTGREATSTAND.COM FOR SURVIVAL GEAR!
FREE DETAILED GUIDE TO SURVIVING ECONOMIC COLLAPSE OR MARTIAL LAW HERE
As I write this, shares of Deutsche Bank are sitting at just $13.63, and many experts are having a very difficult time finding any reason for optimism. In fact, Edward Misrahi has stated that the bank is his number one short trade, and Jim Collins says that “it is just impossible” to recommend buying shares of Deutsche Bank even at this depressed level…
As an equity analyst, it is just impossible to recommend shares of a bank that is not growing revenue. So really, Deutsche is an untouchable, and the stock market is trying — to the tune of a 58% decline in DB’s market value in 12 months — to recalibrate Deutsche’s market capitalization to the true value of its assets net of liabilities. That’s a painful journey.
I don’t mean to just pick on Deutsche Bank. Certainly there are a lot of other major banks around the globe that are also teetering on the brink right now. Just take a look at Italy. Basically their entire banking system is in the process of melting down.
But the utter collapse of Italy’s banking system won’t have the same kind of worldwide impact that the collapse of Deutsche Bank will.
Unlike some of his predecessors, CEO John Cryan is being honest about some of the struggles that Deutsche Bank is going through right now, and he admits that they may need to be “more ambitious in our restructuring”. The following comes from Business Insider…
Cryan said in a statement (emphasis ours):
“We have continued to de-risk our balance sheet, to invest in our processes and to modernize our infrastructure. However, if the current weak economic environment persists, we will need to be yet more ambitious in the timing and intensity of our restructuring.”
He said something similar in a note to employees (emphasis again ours):
“Here I would like to speak plainly. If this weak economic environment persists, we will need to be still more ambitious in our restructuring. We will do everything in our power to accelerate the measures we have already planned.”
Yes, I know that the stock market in the United States has been setting all sorts of all-time record highs lately.
But that doesn’t change what is going on in the rest of the world one bit.
The financial crisis that has been gripping Europe, Asia, South America and most of the rest of the planet since the second half of last year is accelerating.
And it is inevitable that the U.S. is going to be experiencing some very real pain in the not too distant future as well.
So even though things may seem a bit quiet this summer in the financial world, the truth is that there is a whole lot going on under the surface.
Deutsche Bank is one glaringly obvious example of this, but there are many others all over the globe. And not too long from now, the dominoes will begin to fall very rapidly.
BE SURE TO CHECK THELASTGREATSTAND.COM FOR SURVIVAL GEAR!
FREE DETAILED GUIDE TO SURVIVING ECONOMIC COLLAPSE OR MARTIAL LAW HERE
As it relates to the collapse of the U.S. Dollar, Peter Schiff has said many times that when the U.S. Dollar finally collapses, it will touch every man, woman, and child on planet earth, making its collapse the single biggest event in all of human history. In the article above, Michael Snyder confirmed everything Harry Dent said about Deutsche Bank. In the article below from the Silver Doctors titled, “A Reckoning is Coming: “BANK CRISIS Is About To Sweep The Globe,” you’ll learn why keeping any gains realized in Dollars is very risky proposition.
Finally, at the bottom of this post you will find links to supporting articles that include the world’s wealthiest men including George Soros, Warren Buffett, and Donald Trump who all warn that collapse is coming…
From Mac Slavo, SHTFPlan:
Greg Mannarino, who has previously warned that when the next debt bubble pops millions upon millions of people will die in the fallout, says the reckoning for financial markets is coming… and soon:
I don’t know what else you need to see… A lot of people [are asking], “where’s the collapse? where’s the crisis”
It’s happening all over the world… Social unrest, strife, a banking crisis that has no where to go but worse… The chickens are coming home to freaking roost.
You need to take action. It’s that simple.
Are world central banks going to continue to try and keep this market up? Absolutely that’s what they’re going to do, especially because it’s an election cycle in the United States… no doubt about it… but that does not mean things are not crumbling around us.
The evidence is overwhelming…
I have no doubt that a banking crisis is about to sweep the globe…
We are now existing in economic and financial fantasy land and this has inflated bubbles of magnitudes which are so absolutely distorted and twisted, there’s going to be a moment of reckoning.
Mannarino says that Americans should be taking money out of their financial institutions and allocating some of that capital into monetary metals. With the price of gold well below its 2011 highs, now may be a good time to move into this historical safe haven of last resort as a way to protect against the collapse of the economy, financial markets and global monetary system.
Watch his full critical video update:
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IF YOU READ NOTHING ELSE, THE FOLLOWING POSTS ARE ESSENTIAL:
Peter Schiff: Don’t Believe the Hype! The Real Economic Fallout From Brexit (Video)
How Will the U.S. Conduct Trade With Worthless U.S. Dollars and No Gold? (Video)
Peter Schiff: Dollar Collapse Will Be the Single Biggest Event In Human History
Why Did Illuminated George Soros Liquidate 37% of His Stock to Buy Gold? (Video)
What Exactly Does Global Economic Collapse Coming May 2016 Mean?
Dr. Willie and Peter Schiff Together: Total Currency Collapse and Reset Coming
Economic Implosion Will Lead to Stock Market at 5,000 by 2017 Forecaster Says
Warren Buffett Predicts Major Financial Collapse Involving Derivatives and Too Big To Fail Banks
FOR MORE GREAT MATERIAL FROM JIM WILLIE:
Dr. Jim Willie and the Systematic Bankruptcy of Western Society (Video)
Dr. Jim Willie: New World Order Elites in Absolute Terror of Gold Standard (Audio)
Dr. Jim Willie: Deutsche Bank Valued at -$1 Trillion; Economic Chaos Ahead
Dr. Jim Willie: The Corruption Cannot Stop the Masses! 3 Part Interview (Videos)
Dr. Jim Willie: Brexit Result Could Detonate Deutsche Bank!
Dr. Jim Willie: We’ve Got “Educated People” That Are Stupid As Bedposts
Dr. Jim Willie: Death Sentence for Banks, Businesses, Families, and the US Dollar
Dr. Jim Willie: There Are No Prisoners Taken in The Global Money War
Dr. Jim Willie: 7 Signs U.S. Economy Collapses; Gold Will Soon Back US Dollar!
Dr. Jim Willie: Western Economic Markets Collapsing; Eurasian Markets Rise
Dr. Jim Willie: The Dollar is Dead! Even Mainstream Media Realizes it!
Dr. Jim Willie – Secret Meeting at the G20 to Take Down the US Dollar
Dr. Jim Willie: Financial Deals Happening Behind Closed Doors; US Not Invited
Jim Willie: U.S. Dollar is Now a Matter of National Security Due to Poor Decisions
FOR MORE GREAT MATERIAL FROM PETER SCHIFF:
Peter Schiff: Expect An Economic Crisis Infinitely Worse Than 2008 (Videos)
Dr. Jim Willie and Peter Schiff: The Morgue Is Next Stop for U.S. Economy
Peter Schiff: Don’t Believe the Hype! The Real Economic Fallout From Brexit (Video)
Peter Schiff and Jim Rogers on the U.S. Economy: Be Afraid… Be Very Afraid (Videos)
Peter Schiff: Are People Going to Wake Up? The Economy Is Out of Road! (Video)
Peter Schiff: “Trump’s Very Massive Recession May Have Already Begun”
Peter Schiff: Americans Fear Future With ‘Dead-End Economy, Crap Jobs, and Awful Wages’
Peter Schiff: “Can Donald Trump Really Make America Great Again?”
Peter Schiff: Obama “Peddling Fiction” As Unemployed Tops 100 Million People
Peter Schiff: Here Comes the Great, Great, Great, Great Recession!
Peter Schiff: “Whatever Obama Was Calling Recovery… is OVER!”
Peter Schiff: Death of the US Dollar Is Imminent; Fed Out of Options
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We’ll rename it Douche-A-Bank
Thought this article was about Two-Face for a second.