Thursday, February 25, 2016

Deutsche Bank, ready to fall?

Well one of the big surprises of the start of the year is undoubtely the stocks price fall for Deutsche Bank. Once considered the safest bank in the safest EU country (Germany) the shock send panic waves through the financial markets all arround the world.

It's like how no one asked how in debt in Deutsche Bank after all? How much money is frozen in assets that lost much of their value in the past years, how much is speculated in risky investment and how much (or how little) is actually put in solid placements.Count that next to the slow-down in China and other Asian markets, lethargy of Japan economy, plunging commodity prices (especially oil) and heavily indebted energy firms, as well political upheaval from Greece to New Hampshire—all weigh heavily on banks in particular.

Speculators could also show their ugly heads and put more pressure on the bank's already falling stock - short -selling anyone? This could be all prerequisites for the perfect storm, one leading to an ever bigger disaster than Lehman Brothers.