Craig Hemke, The Doc and Eric Dubin – Deutsche Bank On the Brink of Global Financial Collapse? (Video)
Deutsche Bank On the Brink: Could We See A Systemic Financial Collapse Sunday Night? As Much As Part Of Us Would Love To See Deutsche Bank to Blow A $100 Trillion Hole In the Global Financial System This Weekend, We Suspect It Won’t Happen.
Eric’s thoughts on the possibility of a Deutsche Bank depositor bail-in:
The Cypress bail-in example…. probably 70% of the money that was bailed-in was hot Russian money, some of it from organized crime, even. Cypress was one of Russia’s primary off-shore banking centers for exactly that sort of activity.
There’s a HUGE difference between Cypress and a major western bank getting its depositors bailed-in, and especially fiscally sober and easily to irate German depositors.
The PTB has one hell of a juggle on their hands. If they use bail-ins on DB depositors to any significant degree, the political backlash will be FAR GREATER than the political backlash created by the German government nationalization or partially nationalizing DB. DB is going to be, in the least, partially nationalized. That is the end game, re. DB.
As Doc and I stated the very day we broke the bail-in story, the “tool” is only useful in very limited scenarios, and as a band-aid at the edge of the system.