ZeroHedge Search

The Fed is now in very serious trouble.

If the currency market begins to revolt against a particular Central Bank, there isn’t a thing said Central Bank can do about it.

The Fed has maintained rates too low for too long. Historically any time this has happened we’ve had an inflationary disaster soon after.

Warning, the results aren't pretty.

If yields REALLY begin to rise, and the European banking crisis accelerates, we could drop below 1,800 on the S&P 500 in a heartbeat.

Stock market bulls are missing something MAJOR in the markets.

You’ve been warned. If the bond market really starts to go then we’re facing a Crisis that will be exponentially larger than 2008.

DB is just the tip of the iceberg. Throughout Europe banks are imploding in Spain, Italy and elsewhere.

IF the market DOES believe this is happening, then bonds will be falling in price, pushing yields higher and Gold will go THROUGH THE ROOF.

DB’s balance sheet is 50% the size of Germany’s GDP. By way of comparison, imagine if JP Morgan was a $9 TRILLION bank. That’s effectively DB’s status in Germany.

Something VERY bad is brewing in the financial system.

Unless the markets can take out its September highs, we could very well see a repeat of the 1987 Crash.

The EU banking system as a whole is leveraged at 26 to 1. Lehman Brothers was leveraged only slightly higher than this at 30 to 1.

DB is the proverbial “canary in the coalmine” for Europe. Perched atop one of the largest derivatives books in Europe, DB has ties to most major financial institutions in the region.

Stocks believe the hype that the economy is growing rapidly and that we are in a recovery. When stocks finally adjust, we’re in for a rude awakening.