Deutsche Bank's Head Of Global Credit Strategy Explains Why "This Is Not Capitalism"

Tyler Durden's picture

When Deutsche Bank's head of global fundamental credit strategy, Jim Reid, writes a blurb that could have come from any single Zero Hedge article posted here over the past 6 years, it makes us wonder if we, like that Onion, have missed our IPO window.

I don't think it’s too controversial to say that personally I believe that capitalism is generally the best economic system. However part of the problem today is that over the last 15-20 years, capitalism has been propped up every time it’s about to go through one of the cyclical creative destruction phases.


Compounded up that's left us with a big mess to clear up across the globe and a lot of sub optimal resource allocation. That's not the fault of capitalism per se it's the fault of the authorities for not letting cycles naturally evolve. This has become increasingly more difficult as the imbalances build on top of each other.


So across a lot of the Western World we're left with too much debt, too much inequality, low real wage growth, limited conventional tools to help the economy to de-lever, QE and ZIRP and a political backlash against the mainstream. Until we find a better solution voters are likely to have a bias to find alternatives whatever the economic literacy of these views.

As long as said alternative don't involve the war and/or revolution predicted by Paul Tudor Jones of course...

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Latina Lover's picture

End the FED! Down with the BIS!  Hang the Central Banksters!

Bioscale's picture

Isn't Deutche Bank part of the FED cartel?

ilion's picture

So one day Deutsche robbs and rapes the ordinary traders as much as possible and the second day it comes out and says the system is not good. Where do these guys come from and where do they get their education and principles?

oudinot's picture

They get their education, morals from their Nazi ancestors...

Tabarnaque's picture

This is another useless text hiding the truth. It is not capitalism that needs a cyclical destruction phase. It’s the monetary system that needs it. Capitalism CAN exist with a monetary system where money is NOT created out of debt. Period. The root of all the problems is the fractional reserve DEBT based monetary system.

VinceFostersGhost's picture



More Capitalism please!


Under Capitalism, if you die, you just die.


That's a good thing. Sorry sparky, no bailout for you.

smlbizman's picture

but i want my fucking trophy.....

ZH Snob's picture

I agree that the underlying issue is a DEBT-BASED FINANCIAL SYSTEM that demands as tribute, compounded interest.  this backwards logic is devilish in its subtlety and destruction.

but we hold notes of debt we've been trained to value as an asset.  backwards.  debt is not an asset, I don't care what these thieves say.

so, finally, when the debt bubble does burst it will create a storm of cognitive dissonance that will drive many to suicide and mental instability.

not so much for the average ZHer.


Shaznardickleze the Doon's picture

And its still unclear how much compounded interest is needed year after year to beat the blurred CPI. When the game is rigged don't play. 

unitwar's picture

Righ on!  Don't forget the problem of usury, which causes scarcity of money and deflation.  With usury, eventually all money goes to the bankers.  You might find this site worthwhile?

marathonman's picture

Understand that Capitalism IS the system of fractional reserve banking.  Free markets and sound money are very distinct from capitalism.  Capitalism rose on free markets and sound money and pitched the sound money once they had captured all of it.  Now there are only crony markets and debt.  It can end three ways - a steady downward grind down, a credit collapse (default), or a crackup boom currency destruction Valhalla.  I've bet on the latter two but leave the former as a fall back position.

monad's picture

Who got it from their Bolshie ancestors, who got it from their Spanish ancestors, who got it from their Turkish ancestors, who got it from their Mongol ancestors.

Dr. Engali's picture

Principles..... Lol, you don't get to a position like his if you have principles.

Arius.'s picture
Arius. (not verified) Dr. Engali May 7, 2015 8:32 AM

i think most of these guys believe they are doing the right thing ... until the Nuremberg trial. 

the real players always remain unknown and they will be running the next Nuremberg

monad's picture

The Nuremberg trial was a show trial. The instigators, industrialists & financiers all walked, all kept their spoils and all kept their influence.

ebworthen's picture

This guy is a cog within a mechanism within the sub-assembly of the machine.  That's the problem, the organizations - whether they be banks/insurers/corporations or .gov - drive the machine.  Joseph LaBologna is the flashing screen and dinging clanging noises of the Deutschbank slot machine.  The guy writing this is the logic circuit that sees the Pavlovian responses of the gamblers.

Vullsain's picture

Yeah, but If we the Sheeple of the United Coorporations of America allow it, then it is unrealistic to expect any coorporation to play the game against such a stacked deck.    Perhaps when this collapses a political/economic revolution will change the dynamic. I ain't holdin' my breath!!  A Hundered  to One, The Ministry of Truth will triumph as they manipulate and herd the idiocracy like they always do.

JRobby's picture

Boy this guy is smart!!! Where did he go to school?

oddjob's picture

Isn't Deutche Bank the operation that employs cocksucker Joseph Lavorgna?

Toolshed's picture

Being a dick sucker is the least of Joe "The Blow" Lavornga's faults. I personally can't wait to see that "just sucked a biggie" grin wiped off his face.

Fun Facts's picture

It's so uplifting when satanic criminal pedophiles at Douche Bank tell us what's right and wrong in the world.

Stackers's picture

So Greenspan's "Great Moderation" was actually Greenspan's "Great Distortion"

JRobby's picture

I guess if you call leaving the credit faucet on full blast for 10 years "moderation"

weburke's picture

7 bilion people are way out on a limb. maybe not the simplest ones, third world farmers and the like. 

geno-econ's picture

Greenspan is nothing more than an elitist playing the Washington game. Now a normal businwss cycle would produce a huge worldwide recession bringing down the entire fiat credit system. We are left with dreaming that miraculous technological growth will ocurr saving mankind.  Dream on, however when reality sets in a more equitable distribution system of existing wealth will be demanded which is the nightmare of elitists, especially bankers and financial manipulators.


Great delusion is more like it IMHO. Don't forget Greedscum's 'flaw' was built in to the plausible deniabilty he needed to save face and avoid jail. Without 'the flaw', and access to his PhD thesis, we are limited to speculation which, is exactly what Greedscum planned.

SheepDog-One's picture

Central Gangsters sounding a bit nervous now? None of them were complaining while begging to be bailed out.

astoriajoe's picture

So is mr. head of global credit strategy going to resign in protest over his firms role in this mockery?


Usurious's picture
Usurious (not verified) May 7, 2015 8:11 AM



the HEAD of DEBT Strategery????



who benefits the most from a welfare/warfare state/world?.......the bankers, of course...........who runs the world???.........the banks of course........who is the fadder of modern banking......Rothschild.......


Polymarkos's picture

War and revolution are WHY the authorities keep the system from balancing itself; they see opportunity to seize all control and gather all wealth unto themselves.

Government needs you to pay taxes's picture

But dont worry, more .gov (translation higher taxes, more tyranny, less liberty) will fix all that. . .

NoDebt's picture

"it makes us wonder if we, like that Onion, have missed our IPO window"

Now that's funny.

I am always get a little suspicious when guys who works for TBTF/TBTP banks start bemoaning the loss of free market capitalism.  It just makes me queasy.

Dr. Engali's picture

It took him six years to come to this conclusion? Where the fuck was he when Paulson was threatening the U.S people with tanks in the streets if we didn't bail out the banks? Fuck this guy, he needs a nailgun to the head.

ThirteenthFloor's picture

+1. Thinking the exact same thing

Toolshed's picture

Obviously these 1% pricks have known all along what the game was, and how to play it. These recent "relevations" may indicate that, some of these high value targets of our collective ire, are starting to realize they are not invincible after all. There is no wall high enough or bunker deep enough.

JRobby's picture

"American Sniper" that was a good movie.

TeethVillage88s's picture


Now at some point TPTB have to pick the Losers.

Lehman, Bear-Stearns have to be joined by others.

Royal Bank of Scotland, Lloyds, Barclays, Anglo Irish.

Sort of Remember Deutschbank as being a known bad back in 2006 or maybe 2001.

PNB Paribas.


farflungstar's picture

Pissing in his soup just won't cut it.

HopefulCynical's picture

Hank Paulson should hang for treason. Period.

Oh, he's FAR from the only one. But that motherfucker needs to swing by the neck until dead, dead, dead.

unitwar's picture

There is a reason he works for Douche bank.

Mercury's picture

From 40,000 ft up:

Officially low unemployment, easy money, stable government, secure mega-banks, financial asset inflation , low interest rates, officially low inflation, nominally positive financial metrics = Keynesian economics. Your welcome.

Meanwhile, on the ground:

Massive underemployement, a high percentage of crap jobs, high inequality, no credit for the non-rich, limited prospects for the financial asset-poor, rising cost of living for stuff you actually need and an unfriendly climate for small businesses = "Capitalism" and needs to be fixed by government.

falak pema's picture

hahaha, "this is not capitalism"...sounds like Luther saying to the Pope : "this is not catholicism".

But Luther put his life out on the line. What has this bankster done to put his head on the block? 

Deutsche Bank now has a stink that won't go away, a stench that wrenches belly ache amongst its own.

As the lady from the SEC belatedly said : Please close the door NOW that the horse has bolted! 

Intelligence_Insulter's picture

Capitalism hasn't failed it just hasn't been tried yet! 

Atlantis Consigliore's picture

Eine Svey, Drai, Vere Did Vee go Faschimilt und de Schtupped Up HQ mit Dat Fercockta Vegas Casino?  Dumkopf!

Vee ischt lousy mit der Casino Springerverk,  It wasnt German,  IT WAS SVISS!!!!

Und da Front running Panzerfaust Computerpiken and gassen all Z Juden und der Cockroachn Past and futures Traders und London Blitzcreig?...

Vee Schtupped it Vonderbar Und AWSSSSUUM

Under der Libor and Bonz und der Freak Q unzee Markets

Vee Goosteppin ahead und der Fatherland???

.....Yaaaa, Biznesss icht Vonderbar.....

gmak's picture

I guess that this article gives insight into why the alphabet of US regulatory agencies are going after DB.  Too bad it's not some loner in his mother's basement making millions.

messy's picture

No.  This is capitalism.  Just in its dying stages.

Dr. Engali's picture

It's clear that you have no idea what capitalism is.