Deutsche Bank's Incoming Downgrade Effect
Deutsche Bank has acted as a global economic staple in liquid markets for a long time. After becoming the largest derivative holder on the planet some think this bank can have a massive effect on the global financial markets. If Deutsche Bank fails, it's highly probable we will also see a global economic melt down. No stops or breakers will be triggered this time as the derivative market is tied into the liquid capital markets. Similar to when someone sets a line of dominoes for a number of years, once the first domino falls the effect becomes irreversible.
[source Ken Lund]
Two hours ago the Wall Street Journal reported that the Federal Reserve had already downgraded Deutsche Bank to a "troubled condition" one year ago but decided to keep it secret. Do you really think this is transparent, coming from a private institution who some wealthy investors claim "rig" global markets? From my perspective, it is not a very honest thing to do, especially to the unknowing capital investors reinvesting into a collapsing system. What does "troubled condition" even mean? Many experienced stock traders didn't even know this one. I managed to find out more about it on a page from the Cornell website.
This system of globally controlled economics first came into existence in 1909 with creation of the federal reserve. The Federal Reserve is also a private entity controlled behind closed doors, a fact most Americans failed to learn in public schools. A fact that is typically not talked about or mentioned at all by the mainstream media. Seems a little funny don't you think? I urge everyone to ask their friends and family where does money actually come from. You will get some interesting responses. A few conspiracies have ran wild for years in trading markets. Some even believe the Federal Reserve jumps into bond markets and buys bonds including the gold tycoon Peter Schiff, and fellow steemian @marketreport Gregory Mannarino.
The days of truly free markets ended in 1909. For over a century our systems have been ran by a globally controlled, privatized, invite only players club where only the rich are allowed to play. It's a good time to become awake on this issue, protect one's investments, and call upon the brightest people to come up with real world solutions. Some I believe may have already have been built for example the solutions Steem provides like it's ability to have no transaction fees widely differs from the system with the banks. If the big banks do melt down everyone's money people who are aware of the possibility and prepare ahead of time will only soften the transition for themselves.
[The information provided by gray00 and accompanying material is for informational purposes only. It shall not be considered legal or financial advice.]
Great article graylan! I have to agree with schiff in this matter, that the fed will be jumping into the bond market and tightening will end. If not, hundreds if not thousands of cities, corps and states will go bankrupt from rising bond yields. So my guess is either a huge liquidity squeeze or massive inflation. Neither sound very good. I think question everyone wants answered is when. Im not smart enough or connected enough to answer that one.
"When?" is the ultimate question. I cannot predict this either. But i see the signs of 2007 all over again, raising home prices, people forced to live in cars because of this. They raised the housing bubble so high it has priced some of the lower middle class into homelessness already. That does worry me. Although, I still am hopeful the future can be prosperous. Thanks for commenting!!
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