If you’ve been reading here long enough, this shouldn’t come as a shock, especially after knowing that Deutsche Bank is exposed to over $72 trillion in derivatives exposure. To put this in perspective, and as the article states, Germany’s humble GDP currently sits at only $3.4 billion. For further perspective, the $3.4 billion GDP is 0.00004722222% of the $72 trillion in exposure.
Either way, you don’t have to be a financial expert to see Germany has a slight problem on its hands. Litigation charges are likely the least of its worries. The United States economic woes (i.e. debt) might be a seriously problem, but Germany’s are astronomical when considering such things as the debt-to-GDP ratio. It wouldn’t be surprising at all to see Germany collapse and become the falling dominoes catalyst that leads the world economy into a global depression.
The global collapse is a sure bet and is a matter of when, not if. It’s almost a sure bet that Germany will lead the way. The United States is more of an expert in the game of kicking the can down the road.
GERMANY could force the European Union into ruin after Deutsche Bank’s share price plunged following the country’s biggest lender’s first annual loss since the financial crisis.
The German lender posted a full year loss of £5.1 billion (€6.8bn) on Thursday – higher than the expected €6.7bn million.
With losses of €2.1bn in the fourth quarter of 2015-16, fears of the entire eurozone toppling are becoming an increasing reality.
Much of Deutsche’s losses have been down to litigation charges, racking up €1.2bn in the last quarter – which could still increase.