Deutsche Bank’s Balance Sheet Is Toxic Waste

Deutsche Bank has $1.5 trillion of declared asset value on top of $67 billion of net worth.   But a large portion of its assets are loans and related financing vehicles and trading positions connected to Glencore, VW, the energy sector, emerging market companies, high yield and a highly unreliably valued net derivatives position.  It Deutsche Bank has “mismarked” the value of all these assets by just 5% its net worth is wiped out.

It’s more likely that the bulk of its assets are overvalued by at least 20-30%.   And that’s in the context of the current financial and economic environment – both of which seem to be quickly deteriorating.  In other words, DB is technically insolvent.   I performed a similar analysis on some big bank balance sheets in late 2007/early 2008 and my model predicted the collapse of Countrywide, Wash Mutual and Wachovia. All of the big Wall Street banks should have collapsed but we know how that ended.

The present situation doesn’t remind me of 2008 right before Lehman blew up.  It is more like 2008 x 10.  The hidden ticking time bombs in the global financial system are significantly greater than what was ticking 2008.  And the fraud and criminality used to cover it up, along with the propaganda devised to promote the idea that the economy is recovering, is many times more worse than it was in 2008.

Craig Hemke of me invited onto this podcast show to discuss Deutsche Bank’s latest “fluffed up” $7 billion “intangibles” write-down, which didn’t even scratch the tip of Deutsche Banks real “iceberg” of financial toxicity.

You can listen to this discussion at here:   Deutsche Bank And The Coming Global Financial Catastrophe

A friend of mine with connections at DB told me yesterday that his sources describe Deutsche Bank as a toxic junkyard of chaos and complete unaccountability.  In my opinion the German Government/EU will eventually either have to print money and monetize DB or its demise will trigger Lehman x 10.

4 thoughts on “Deutsche Bank’s Balance Sheet Is Toxic Waste

  1. I wonder if this is why the head of the EU has now said he wants to normalize relations with Russia. It’s not just about Syria. The German industrial sector and other EU corporations want to start trading with Russia again. They will need to if DB goes up in flames.

    If the EU can send all the refugees back to Syria they will be throwing flowers at the Russians. We could be about to see a big political shift.

  2. TPTB can Now – Let the whole thing go and Collapse the present world Monetary System (which they control) and bring total chaos to the world – And then bring in Their NWO financial system which everyone will gladly receive, “Checkmate” – They then Control the whole world.

  3. can you relate?

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  4. In 2008 an old friend of mine who was retiring from a very senior internal post at UBS came to see me. I asked him why they could not ring out the derivatives and bring this game to an end and he said the winners won’t let the losers off the hook, they won’t accept settlement and they want their money.

    I asked him who the winners were and he said dark actors and black market players run out of Switzerland. He then changed the subject or so I thought and asked me about Berlusconi who it is alleged rose on the back of the heroin trade. Now we have a four year bear market in commodities and four year bull market in the dollar which has completely brought the winners of the commodity hedges the point of bankruptcy Glencore, Trafigura etc.

    The main players are dead or dying Claude Dauphin regretfully passing in Columbia perhaps having told some of his backers about the value of their investments. The funders of the European banking players UBS, Deutsche are all on their knees and can’t bail out the system to hold it together to make good on the winnings.

    Looks to me like the Fed is winning not losing. Looks like the ring out is going to happen the hard way.

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