Post by Ozarks Tom on May 28, 2021 23:39:20 GMT
I know, I know, I keep harping on derivatives, but in my maybe foolish opinion they're the key to the collapse of the world's economy. The article talks about trillions, while it's been estimated many times the real total number worldwide is over a quadrillion.
These are unregulated and unreported for the most part obligations taken on by the big banks and investment houses, including insurance companies. Think you annuity is safe? Ask, or investigate the guarantor how much they have invested in derivatives.
Apparently Deutsche is nearly to the edge of bankruptcy, and has put all its eggs into that basket. Why? Because Deutsche Bank has been corrupt for decades, garnering huge fines for market manipulation and price fixing. Yet they're the mainstay bank of Europe.
As the article says, margins, how much money has been borrowed against an investment is never disclosed, even to the lenders, hedge funds can be deeply in debt to several banks without those banks knowing about the other's lending.
Derivatives are the nuclear bombs of the world's economy. How they're allowed is something we'll never understand, mainly because they're a game played by those who will never, they think, feel the pain of hunger.
The article doesn't say it, but if just one big player in somewhere like Indonesia goes toes up, they're toast and the rest of the world will suffer from their foolishness and greed.
On July 7 the beleaguered German giant announced that it is laying off 18,000 employees—roughly one-fifth of its global workforce—and pursuing a vast restructuring plan that most notably includes shutting down its global equities trading business…These moves may delay Deutsche Bank’s inexorable march into oblivion, but not by much and, as Deutsche Bank collapses, it could take a whole lot of others down with it at the same time.@your Finances
According to Wall Street On Parade, the bank had 49 trillion dollars in exposure to derivatives as of the end of last year…putting it in the same league as the… U.S. juggernauts JPMorgan Chase, Citigroup and Goldman Sachs, which logged in at $48 trillion, $47 trillion and $42 trillion, respectively. munknee.com/collapse-of-deutsche-bank-would-be-catastrophic-for-global-financial-system-heres-why/
According to Wall Street On Parade, the bank had 49 trillion dollars in exposure to derivatives as of the end of last year…putting it in the same league as the… U.S. juggernauts JPMorgan Chase, Citigroup and Goldman Sachs, which logged in at $48 trillion, $47 trillion and $42 trillion, respectively. munknee.com/collapse-of-deutsche-bank-would-be-catastrophic-for-global-financial-system-heres-why/