"We're Now Seeing Bubbles Everywhere" - Deutsche Bank Boss Urges End To "Era Of Cheap Money"

Tyler Durden's picture

The head of Germany’s largest commercial bank warned of the fallout from cheap money, cautioning against using the strong euro as a justification for printing more.

Bloomberg reports that the Deutsche Bank Chief Executive Officer John Cryan called for an end to the era of cheap money in Europe, saying that the prolonged period of rock-bottom interest rates is starting to inflate asset bubbles and putting the bank at a disadvantage to U.S. rivals.

“We are now seeing signs of bubbles in more and more parts of the capital market where we wouldn’t have expected them," Cryan said, adding that the interest-rate policy has been partly responsible for the decline in earnings at European banks.


“I welcome the recent announcement by the Federal Reserve and now also from the ECB that they intend to gradually bring their loose monetary policy to an end.”

Low interest rates, money printing and a penalty charge for hoarding cash have been at the heart of attempts by the central bank to reinvigorate the 19-country euro zone economy in the wake of the 2008-09 financial crisis.

Reuters reports Cryan told a room full of bankers in Frankfurt on Wednesday, a day before the ECB’s governors meet to discuss policy, that:

"the era of cheap money in Europe should come to an end - despite the strong euro."

Cryan also explained how ECB policy (relative to The Fed) has disadvantaged European banks...

“U.S. banks enjoy a competitive advantage due to the local interest rate environment,” Cryan said.


“In the first half of 2017 alone the net interest income of U.S. banks rose by eight percent, in Europe it fell by two percent. We at Deutsche Bank had access to over 285 billion euros of liquidity at the end of the second quarter, because we are now receiving huge cash inflows. This money, which actually constitutes the strength of a bank, is costing us penalty interest.”

And finally took at jab at the Brexiteers, noting that Frankfurt was the most natural location as a financial hub as banks move from London after Britain’s decision to leave the European Union - ahead of Paris, Dublin and Amsterdam.

“There is only one European city which can fulfil these requirements and that city is Frankfurt,” he said, pointing to Frankfurt’s supervisory authorities, law firms, consultancies and airport.


“It’s not about a choice between Dublin, Paris or Frankfurt – it’s about a choice between New York, Singapore or Frankfurt,” he said. “Brexit could become a large stimulus package for Frankfurt’s economy.”

In conclusion, Cryan urged that The ECB should "wave goodbye" to loose monetary policy because while it helped banks, financial markets and individual countries emerge from the financial crisis, it’s now causing "ever greater upheaval."

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aliens is here's picture

FK YOU NAZI KRAUT and take that old used up cnt Merkel with you.

eforce's picture

Soros shorted them, money pumps stay on.

T-NUTZ's picture

We'll end the era of cheap money all right.   Get the rope.

Life of Illusion's picture



TheReplacement's picture

Translation:  It seems that we have reached the point where the easy money will start to become available to the people.  We must prevent this at all costs.  PS - Hail Lucifer.



BennyBoy's picture


When DB talks about bubbles they mean the bubble in fines their paying for silver price fixing, gold price fixing, LIBOR fraud....

Captain Chlamydia's picture


"the era of cheap money in Europe should come to an end"






"the era of crap money should come to an end

Government needs you to pay taxes's picture

Insolvent bank, corrupt stooge.

Augustus's picture

It just means that DB must have been able to unload all of the lousy Euro Country debt and bonds onto the ECB at an amazingly good price.  Now Draghi can change policy and will smile as the ECB eats the defaults.  Draghi always smiles.

The Wizard's picture

The banksters have been buying gold with their inflated QE while suppressing the price and telling us its a barbaric relic.

Oil for gold-backed Chinese Yuan is ready. Dave Kranzler explains how crude oil will now sell for something that can’t just be printed out of thin air or double-clicked into existence…


T.Gracchus's picture

T.mosely should be made head of the ECB. With his extensive knowledge of Crypto tokens, surely financial problems would be but little hiccups on the yellow-brick road to Bitcoin nirvana?

Arnold's picture

The ECB is running out of bonds to buy.
Time is coming to sell them back for fun and profit.

ludwigvmises's picture

If the cheap money period ends his entire bank goes tits up. Does bald-head understand this?

T-NUTZ's picture

the golden parachute is locked and loaded

silverer's picture

But, but... it made them so RICH!

BandGap's picture

Do you have to be bald to be in charge of the monies?

And figuring out this bubble thingy.....genius.

A. Boaty's picture

The era of cheap money should never have started. Shoulda thrown banksters in jail and punished business failure.

LawsofPhysics's picture

These bankers and financiers have been giving themselves FREE MONEY (NIRP/ZIRP) for DECADES and continue to do so!!!

Meanwhile, you must perform real work and face real risk....

Let me be clear, so long as you accept their FIAT currency, NOTHING changes!

"Full Faith and Credit"

T-NUTZ's picture

You don't seem to understand.   The little people labor for dollars.   We simply print them.   All your base are belong to us.

JoeTurner's picture

This autumn may prove to be very interesting

LawsofPhysics's picture

...said my father in the autumn of 1971.

"Full Faith and Credit"

AG17's picture

Its funny when bankers cry of their own wrongdoings.

BandGap's picture

It's called projection, usually only works for a little bit.

And it is funny, but not a joke.

brushhog's picture

After pasturing my cows this mourning I took a walk through the woods. Found an edible mushroom called 'hen of the woods'. A 6-8 pound specimen. Going to cook it up in a soup this afternoon! Life is good.

baldknobber's picture

My condolences on your loss

T.Gracchus's picture

After walking my trusty golden retiever, Mr Mosely, I came home and realised that I had left Mosely's leash on a bench. When i went back it was still there!
Life is good ( but often irrelevent to the topic).

T-NUTZ's picture

Buy some BTC Bankster Bitch!

gregga777's picture

They will punish John Cryan for opposing their money-printing, nation-looting schemes and scams.

Lady Jessica's picture

Kabuki theatre:  A beginner's guide.

Perplexed actor DB walks on stage mouthing the words "central banks" and "bubbles".  Conveniently omits he is a primary dealer of largest of said banks and also a time bomb financial liability for the German Federal Republic and by extension the European Union.

Compliant chorus (aka mass media) gives account of actor's gestures without any critical commentary whatsoever.

DB continues to grimace perplexedly.

[end scene].

shizzledizzle's picture

All these bubbles just snuck right up on everyone all the sudden?! LOL, fucking idiots.

dark fiber's picture

Wait until after the German election when the mess in Europe breaks out for the whole world to see.  Then we will talk about the strength of the Euro.

Fireman's picture

The tsunami of toxic derivative shit is mounting and is going to wash the Dusche Bank and all its bankster scum down the sewer.

Prep now or suffer the eternal consequences. After the tsunami of fiat filth crashes look forward to the satanist banksters festooning the remaining lamp posts of our so-called Western democracies along with their pedophile political garbage enablers and presstitute apologists.







gregga777's picture

"After the tsunami of fiat filth crashes look forward to the satanist banksters festooning the remaining lamp posts of our so-called Western democracies along with their pedophile political garbage enablers and presstitute apologists."

It'll be time to party and grill some steaks on the BBQ while admiring the hanging corpses.

JohnGaltUk's picture

You could be right. There is a pungent smell of revolution in the air here in the UK.

Crooked banksters and crooked politicians and our public institutions are collpasing before our eyes.

Dump's picture

Jamie Dimon said the same thing a few months ago.

Looks like banks have pigged out on free money, can't stuff any more debt into Joe Public.

So they need a new menu - higher interest rates to boost margins and net interest income.

He'll be Cryan soon when DBs derivatives book implodes.


rrrr's picture

1. Actually, money is likely to get a lot cheaper.
2. What's really sobering is that these guys are not smarter than you and me.
3. What really concerns them is their position in their professional life.

issimo's picture

On all three points, especially point 2....you are 100% correct sir!

JohnGaltUk's picture

Money will be cheap alright, it will become wortless.


"Paper money eventually returns to its intrinsic value -- zero."


Not My Real Name's picture

"1. Actually, money is likely to get a lot cheaper."

1. Actually, fiat is likely to get a lot cheaper.

Fixed it.

I expect money (gold) will be getting more expensive. Well ... once the manipulation ends.


To Hell In A Handbasket's picture

Now that the top 1% has had 93% of the QE money, bought hard assets, land, precious metals and fine art, these fuckers are now preparing the brain-dead for phase 2. The money-masters have overseen the biggest transfer of wealth from the bottom to the top 1%, in the history of mankind and where is the united front against this daylight robbery?

Oh, silly me. There isn't any. 

gregga777's picture

"…where is the united front against this daylight robbery?"

Oh, silly you. A United front would be deemed anti-Semitic by the Zionist FAKE NEWS Media.

JohnGaltUk's picture

I lit a candle with a few friends of mine.

We had half a candle left over from the Barcelona sh!t

Panic Mode's picture

His big bald head looks like a big bubble as well.

The Count's picture

The money changers and their helpers are just like an invasive disease. It keeps spreading until the host is dead.

gregga777's picture

It keeps spreading until the host is dead or until the parasites are eradicated. I vote for eradication of the evil, banking gangster parasites.

small axe's picture

He won't look so statesman-like when he's swinging from the end of a rope.

Nothing but a fuckin' thief in an immaculate white collar.

TheSilentMajority's picture


It has not been "an era of cheap money", it has been an era of FREE money.

Batman11's picture

Does Mario’s fix just mask the problems building behind the secnes?

His fix of buying bonds does keep bond yields down at the periphery and stops the Euro being ripped apart by market forces.

Target 2 imbalances are building behind the scenes as private investors, companies and banks off-load their potentially loss making bonds onto the ECB.

The forces that act to pull the Euro-zone apart have longer to work while this temporary solution masks the problem.

 "historically the German D-Mark had been strengthening since its introduction in 1948 against the currencies of its neighbours, and this reflected – and compensated for – increased German competitiveness. Their weakening currencies allowed German trade partners to keep their export industries in business and their workers employed. By introducing a single currency, future revaluations of the German currency were disallowed. This amounted to a de facto future devaluation of German purchasing power, revaluation of the currencies of the other European countries, and hence would render non-German economies less and less able to compete against German exports over time."

Germany gets an under-valued currency that keeps making it stronger.

The Club-Med nations get an over-valued currency that keeps making them weaker.

The longer these forces are left to act, the worse it gets.

Free markets would soon see an end to this financial aberration, the ECB is stopping the markets doing what they would naturally do, and is probably storing up ever growing problems for the future.

Plus the bubbles.