Deutsche Bank – the New Lehman Brothers?

As Mr. Armstrong points out, DB is part of the Euro crisis. It’s exposed to a time bomb of over $70 trillion in derivatives and it’s not surprising that it’s been said to be the next Lehman Brothers. It should be interesting to see how much more it’s exposed to in regards to the Volkswagen ‘scandal’, which is more of a political hit for quick cash. If the global economy is going to collapse, it is going to start in Germany.

 

The rumor mill has been nonstop. The crushing blow to Europe will be the failure of Germany’s biggest bank: Deutsche Bank. Just about every circle is quietly discussing how the bank is facing bankruptcy. The rumors have flown since March when Deutsche Bank failed the U.S. regulatory stress test, which was followed by the resignation of its head in June. A collapse of the Deutsche Bank is profound and very likely to impact Europe to the point that everyone behind the curtain is now calling for a new Lehman moment. Sources tied with the Fed’s decision not to raise rates fear that they will be seen as the cause of its failure. Germany clearly faces a major shock; if this combines with Volkswagen for the turning point next week, well, here we go again. Continue reading

Billionaire Tells Americans to Prepare For ‘Financial Ruin’

The United States could soon become a large-scale Spain or Greece, teetering on the edge of financial ruin.

According to Trump, the United States is no longer a rich country. “When you’re not rich, you have to go out and borrow money. We’re borrowing from the Chinese and others. We’re up to $16 trillion in debt.”

He goes on to point out that the downgrade of U.S. debt is inevitable.

“We are going up to $16 trillion [in debt] very soon, and it’s going to be a lot higher than that before he gets finished. When you have [debt] in the $21-$22 trillion, you are talking about a downgrade no matter how you cut it.” Continue reading