Deutsche Bank warned it expects to record a third-quarter loss of $7 billion, tied to a huge write-down in its corporate-banking-and-securities segment. The bank said the charges are driven by the impact of expected higher regulatory capital requirements and its disposal of Postbank. It also said it will consider reducing or eliminating its common dividend for fiscal 2015.
DEUTSCHE BANK SEES 3Q NET LOSS EUR 6.2 BLN
DEUTSCHE BANK TO RECOMMEND DIVIDEND CUT OR POSSIBLE ELIMINATION
If you think this sounds like some kind of conspiracy theory, consider that France just banned any transaction over €1,000 Euros from using physical cash. Spain has already banned transactions over €2,500. Uruguay has banned transactions over $5,000. And on and on.
Q. Should somebody have gone to jail.
Bernanke: Yeah, yeah I think so. It would have been my preference to have more investigation of individual actions as obviously everything that went wrong, or was illegal, was done by some individial not by an abstract firm.
Moves will be made to ban physical cash in the coming months.
"This is a risky business. Can they get it wrong? Absolutely they can get it wrong."
Contrary to popular opinion, there are problems that are too big for the Central Banks to control.
"As interest rates go more negative, market participants will have increasing incentives to make payments quickly and to receive payments in forms that can be collected slowly. This is exactly the opposite of what happened when short-term interest rates skyrocketed in the late 1970s: people then wanted to delay making payments as long as possible and to collect payments as quickly as possible.... if interest rates go negative, we may see an epochal outburst of socially unproductive—even if individually beneficial—financial innovation."
Moody's Downgrades France, Blames "Political Constraints", Sees No Material Reduction In Debt BurdenSubmitted by Tyler Durden on 09/18/2015 16:45 -0400
Citing "continuing weakness in the medium-term growth outlook," Moody's has downgraded France:
*FRANCE CUT TO Aa2 FROM Aa1 BY MOODY'S, OUTLOOK TO STABLE
Apearing to blame The EU's "institutional and political constraints," Moody's expects French growth to be at most 1.5% and does not expect the debt burden to be materially reduced this decade.
Billionaires like Warren Buffett make fun of Gold, while ignoring the fact it has outperformed stocks ever since it was de-pegged from major currencies in 1967. This is part of a larger War on Cash implemented by the Central Banks.
This is just the beginning. As Central Bankers grow more and more desperate in the coming months, you’ll see more and more calls for extreme measures such as banning physical cash or imposing a “carry tax” on those who remove cash from the system.
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The significance of these developments cannot be overstated. Central Banks will be increasingly acting against one another going forward. There will more surprises and more volatility across the board. Eventually it will culminate in a Crash that will make 2008 look like a picnic.
Accounts will be frozen, and funds will be shut.
"The costs of executing the collateral are very high unless creditors send pirates from Algeria to go and get the vessel."
With a central bank following an asset inflation policy the flows are following performance. The Fed has unknowingly created winners and losers in the asset management business on a massive scale. The asset inflation environment also creates a volatility vacuum. Volatility is necessary to keep markets honest and provide long term stability. An investor must truly believe in their investment and must have performed significant due diligence to have the confidence to ride out the volatility. The market that is not kept honest is the one where reckless behavior proliferates, because it works and is profitable. The most prominent example is the massive carry trading that occurred during the last tightening cycle.