Deutsche Bank Stock Plunges To All Time Low After Merkel Rules Out State Bailout

DB is in very big trouble and it has already lost half of its value since January of this year. http://www.zerohedge.com/news/2016-...w-after-merkel-rules-out-state-bailout-defaul

The German economy is the biggest one in Europe and now a really big very real financial crisis could sweep all of Europe and the US too. The smart money started getting out of Europe a long time ago and now that Britain is getting out of the EU not even the European Central Bank can prop this mess up.

The German leader, Merkel, says whatever the ECB tells her to say. She says that Germany won't bail Deutsche Bank out and that could set off a financial firestorm that could burn everybody. This is very strange because usually central banks just print more worthless money and everybody is happy. What is really different this time?

 

Merkel the cow that gives no milk.

 

could bring on a bank effect globally

 

Don't worry, no matter what it looks like right now you can bet that the European Central Bank will give Deutsche Bank as much money as it needs. Draghi and the other central banker criminals will keep their little European fantasy economy rolling along one way or another. They're probably just allowing the wind to go out of the sails for awhile to shake out some of the deadwood.

Why am I so sure? Because, if DB fails, the entire EU fairy-world fails. The central bankers would lose everything they have gained since the creation of the EU .No, the ECB will fire up the money printing-press again and, through one channel or another, they'll "rescue" Deutsche Bank... when it suits their purpose. And the bankers' stooges and puppets like Merkel, Hollande, and the rest of this pathetic bunch of internationalist morons will, as you suggest, do exactly what they're told to do....

 

The warning is becoming more clear. Germany appears to be a giant ATM machine for the entire EU. https://www.rt.com/uk/361043-germany-brexit-eu-collapse/

The Brits appear to be the only smart people over there because they're getting out. I sure wouldn't want to be a twenty-something German right now. They are going to get stuck with all the bills and debts for a failed European economy. And I disagree that the ECB is going to save Germany from all this. If they were going to save Germany they would not have let it all come to this point.

As an American though I wonder and worry about one thing most of all, and that is how much skin does the American economy have in this European game?

 

Tight money doesn't help a growing world economy, though. Additional currency has to come from somewhere.

 

The central banks have completely taken over the economies of the United States and Western Europe. Like I said, they'll go on "printing" more fictional money in various kinds of "easing" because they refuse to do the one thing that would give validity, credibility, and mathematical equity to American and European economies -- let interest rates rise as the demand for the money itself rises!

The way it has been since the "Great Recession" here, and in Europe: people live beyond their means and buy more and more stuff on credit that they can't afford. Something happens and they can't pay their bills. Result -- the central banks (Fed, ECB, etc.) start stuffing the 'ordinary' banks with trillions in fantasy money. The 'ordinary' banks make a fortune being the middlemen, and the overspenders get enough in loans at ZERO-PERCENT INTEREST to carry on with their feeble lives (and a lot of government welfare programs)

The way it should be: people who live beyond their means go bankrupt... too bad, so sad. That's what happens in the REAL world. Oh, BTW, this goes for irresponsible financial institutions, stockmarket gamblers, hedge-fund players, and companies that have liked to live dangerously. (*)(*)(*)(*) THEM! Let them go belly-up and stand in line at a communal soup kitchen.

Keep the money supply stable and support the value of the currency instead of debasing it! Let interest rates rise in keeping with the TRUE DEMAND FOR MONEY. Failed businesses will be taken over by more skillful, wise owners and managers, growth and prosperity resume after a short time, people are employed in good jobs again and begin making good money, which supports a growing economy. THIS is essentially what the United States did when Ronald Reagan began his first-term as President, working with Paul Volcker of the Federal Reserve System. It was called "Reaganomics" and it was a phenomenally successful economic miracle that wiped out all the "Stagflation" misery of the 1970's.

 

When population grows, though, the money supply has to, as well.

 

The money supply does indeed need to grow, but proportionally and sanely. What the Western central banks have done since August 2007 has been anything but proportional, sane, or, FAIR. Central bank enthusiasts say, "Yeh, but there hasn't been any inflation." But there has been tremendous asset-inflation, which isn't fully counted when the client-governments release their cheery reports....

 

With more people on the planet, this is bound to happen. The assets of the planet are being divided up among more people.