Now you have Dimon claiming a second meltdown is almost impossible in defense of Hillary because the banks supposedly don’t buy each other’s crap anymore. How come he didn’t ring the klaxon last time? I’ve heard their all back in stupid derivatives again and now it seems like public pension funds are in them too. Why! why! why!!! And negative interest what could be worse than that- it won’t work as a way to get people to invest.
The report mentioned European banks have a mountain of bad debts totaling around €1tn. The bad debt amount to 5.6% of total loans and advances of Europe’s Banks and 10% when lending to other financial institutions are excluded.
Who was the report done by? When the housing collapse happened they grossly underestimated how much bad debt they held. They said it was a small percentage when in fact it was a huge amount. Hidden by “auditing” agencies who labeled them great investments.
In Europe it’s quite over the news. They made a fund in Italy and “fixed” the problems. At least that’s what they say . I indeed don’t trust that sector. Before you no it there’s way more trouble than anybody could have seen.
It Begins: One European Bank Fails, Another One Needs An Urgent Cash Injection!
Interesting news this week as Belgium-based Optima Bank has been shut down by both the National Bank of Belgium (which also acts as the Belgian regulating body) as well as the ECB. According to the national supervisor, the bank would have been unable to meet its commitments to its clients and was forced to cease all banking activities after some potentially fraudulent transaction were unveiled.
It’s surprising to see the main media have tried to keep this silent as even the website of the National Bank of Belgium didn’t bother to issue the press release in English (whereas all other press releases on the home page can be read in English). There’s no statement from the ECB either, nor has this news been translated on the English version of website of the state-owned national television station.
The situation is so bad the regulator has already immediately tasked the special fund organizing the Deposit Guarantee Scheme to start paying out the clients of the bank, even though Optima Bank hasn’t filed a bankruptcy procedure just yet. The urgency of the need to pay the clients does indicate the situation is extremely bad and even though it’s a very small one (it had closed the savings accounts division last year), there are two more important things you need to keep in mind…
Here is what seems to be happening- very clearly- the whole global junk loan junk bond junk debt scam known as derivatives is built around insuring a petrol bubble. But consciously, unconsciously, in terms of consensus and in terms of science everyone knows that petrol is obsolete. At the same time the whole empire invasion game is built around petrol and using it to keep the Mid East w seeming to be worth invading. This whole pile of BS is collapsing and loser petrol cowboys are going to be replace by cord cutting as surely as someone will release the current decade equivalent of Skype by pairing tech life 5g/safe/mesh/IOT- first the lights go off with a cable telco lock out dumb pipe conversion then the cord gets cut. Just like with the insurance industry vs self driving cars- surprise capital is obviously as obsolete as petrol. Its power to the people not the rent seekers, their rents are canceled and they are fired Brexit style.
“Deutsche Bank Poses The Greatest Risk To The Global Financial System”: IMF
Over three years ago we wrote “At $72.8 Trillion, Presenting The Bank With The Biggest Derivative Exposure In The World” in which we introduced a bank few until then had imagined was the riskiest in the world.
As we explained then “the bank with the single largest derivative exposure is not located in the US at all, but in the heart of Europe, and its name, as some may have guessed by now, is Deutsche Bank. The amount in question? €55,605,039,000,000. Which, converted into USD at the current EURUSD exchange rate amounts to $72,842,601,090,000… Or roughly $2 trillion more than JPMorgan’s.”
A time bomb. Now if you multiply that times 20 I figure that is what the capitalists in just the US owe us for taking us backwards on equity. Right now the 2% share of the econmony should be 1% or a little more not 64% like in the 08 census.