As was said in an earlier post, the fines imposed by the DoJ are ironically what the balance sheet looks like for Deutsche Bank, Volksagen et al. It’s economic warfare in that case.
Nine years after the initial eruption, it still rumbles on, with the epicentre now moved from the US to Europe. Only it’s not the same crisis; in large measure, it is completely different.
Today’s mayhem is not so much the result of reckless bankers and people asleep at the wheel of regulation, but rather of the public policy response to the last crisis itself – that is to say, regulatory overreach and central bank money printing.
All eyes are naturally focused on the specific problems of Deutsche Bank, but Deutsche is in truth no more than the canary in the coal mine. Continue reading