Deutsche Bank and the Banking Selloff
Nattering Naybob here at Phil's Stock World…
On the subject of Deutsche Bank and why are banks getting hammered? What Phil says is correct, the PPT or ubiquitous "they" don't want a repeat of 2008 and may intercede if necessary. TBD.
I don't want to lead anyone astray, but its what I've been Nattering about for quite awhile. It's not oil, it's not credit, it's not bank stocks, it's not (FILL IN THE BLANK). Those laments are symptoms of a much greater problem, simply put in ONE WORD: LIQUIDITY.
Now here is something to read, and, yes, it's from ZH, which makes Phil and my "conspiracy" theories, look tame. It's a purported email from a Deutsche Bank analyst sent out today. Some may not understand half of what he is writing about, unfortunately I do. And whoever wrote that email knows their stuff, i.e. how the bifurcated banking system really works, double entry ledgers and balance sheets.
Is that email REAL? If it's not it's a great media plant fed to the deep throat ZH. I dunno, but I'll tell you… not what I believe or think, but what I have researched and written about at length and do KNOW. Because I've had my head buried so far up their system, I know what they had for lunch and sometimes breakfast… I can confirm exactly what the email drives at and most of its other trade talk content, aside from the speculation as to solutions, as being spot on.
If this is a TRUE exemplar from an analyst inside DB, he is probably out of a job. If so, then what do you think the big boys or "they," who have known this for awhile, are doing behind the scenes? No panic, all is well here at DB, don't worry and pay no heed to …
Somebody either thinks they know something (spook the herd media narrative) or they know something (informed) and the elephants are quietly trying to get out the theatre doors. One or the other, and the selloff is no surprise to me. Take it for what its worth, the price of admission, a box of popcorn, sit back, relax and watch the show. Or not. TBD.
Picture by Jason7825 – "I took it," CC BY-SA 3.0, clilck here.
