Eurozone

Is This Why Deutsche Bank Is Crashing (Again)?

Deutsche's dead-bank-bounce is over. The last few days have seen shares of the 'most systemically dangerous bank in the world' plunge almost 20%, back to record lows as the DoJ fine demands reawoken reality that the €42 trillion-dollar-derivative-book bank is severely under-capitalized no matter how you spin asset values. However, another question looms - Is Deutsche Bank cooking its derivatives book to hide huge losses...

Key Events In The Coming Central Bank-Dominated Week

Central banks will take center stage this week, with the Boj and Fed within hours of each other, then also the RBNZ and Norges all delivering policy decisions. Of the four however, the BoJ will likely steal the spotlight, especially as we expect no changes in policy from the other three.

Why The EU Is Doomed

We are accustomed to looking at Europe’s woes in a purely financial context. This is a mistake, because it misses the real reasons why the EU will fail and not survive the next financial crisis. We normally survive financial crises, thanks to the successful actions of central banks as lenders of last resort. However, the origins and construction of both the the euro and the EU itself could ensure the next financial crisis commences in the coming months, and will exceed the capabilities of the ECB to save the system.

Merkel Says Europe Is In "Critical Situation"

"We need solutions for Europe and we are in a critical situation," Merkel said as she arrived at the gathering. "You can't solve all Europe's problems in one summit. What we have to do is show in our deeds we can do things better in the realms of security and fighting terrorism, and in the field of defense."

Greece Raids Home Of Central Bank Head

While the US the media lashes out at Trump every time he dares to tell the truth that the central bank is a biased, engaged, political member of the decision-making landscape, other "developed" countries are happily willing to demonstrate just how apolitical the central bank truly is. Take Greece, for example, where today the chief prosecutor ordered a raid of the home of the governor of the Greek central bank.

"The Financial Crisis Has Morphed Into A Growth Crisis" - Rogoff Warns "Cash Is Not Forever, It's A Curse"

"Big bills are a curse... understand this: Cash is not forever... in fifty years there will be no cash... it’s one very important step towards enabling central banks to have much more effective tools in fighting a financial crisis and in particular to use negative interest rates in an effective way... people who are older need to think about having a larger share of stocks than the traditional wisdom..."

A Homerun For The Donald - Attack The Fed's War On Savers, Workers And The Unborn (Taxpayers)

"Indeed, the Fed is waging an insensible and outrageous war on savers, workers and future taxpayers - even as it pleasures the 1% with fantastic financial windfalls from the Wall Street casino. Now that is a rigged system. And that is a beltway evil that merits the Donald’s unrelenting attack on behalf of the citizens of Flyover America who have been left behind in their tens of millions."

Germany: Beginning Of The End Of The Merkel Era?

German Chancellor Angela Merkel suffered a major blow on September 4 when the anti-immigration party Alternative for Germany (AfD) surged ahead of her Christian Democratic Union (CDU) in elections in her home state. Merkel rejected any course correction on migration policy: "I am very unsatisfied with the outcome of the election. Obviously it has something to do with the refugee question. I think the decisions that were made were correct." She went on to blame German voters for failing to appreciate her government's "problem-solving abilities".

Why One Hedge Fund Is Once Again Preparing For The End Of The Euro

"The time for treating the EUR-peg as a taboo may soon be past us, and an open discussion become the dominant narrative, in pursuit of a long-term durable solution to economic stagnation, in an attempt to save the European Union, so to orderly drive the process as opposed to end up being overwhelmed by the trending course of events."

Why The Eurozone Will Self-Destruct

Fireworks are going off in Germany again in yet another battle between Wolfgang Schaeuble, Germany’s finance minister, and the ECB.