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.

Saturday, January 30, 2016

Oil price getting to the ground

So yes, we're seeing the oil price dropping every day, seems like a free fall. Where it will end? It already reached some levels we though impossible a few years ago. One other question is how this affects who?

Well you have the oil producing countries first. Yeah, Arabs and all that but also Russia. The oil price going down means Russia will have to do with a reduced budget after all. Less money for weapons and researching that new line of Suhoi airplanes.

On the other hand it affects consumers, regular Joes like you and me. Or it should have. The fuel price has dropped a litlle but not dramatically, maybe those oil businesses want to keep the extra dollars for themselves as profit. And really how can blame them? As long as the people pay for what they charge they have no reason to lower their price just because the oil barrel price falls no?

Wednesday, January 6, 2016

New nuclear test from North Korea - The H-bomb

Well it seems little old Kim is really boring these days, left out of party people to execute with cannons and decided it's time to do another nuclear bomb test. He knew it would upset the Americans, South Koreans, Japanese but he didn't really cared. According to the official agency in North Korea the test was a success but then again how would they dare it to present it otherwise?

Except for the case it fell dirrectly on Kim's head and exploded sending the only fat boy in that country in outer space it's safe to assume the news report would present it as a glowing victory of the nation and the communist party. Maybe the proud citizens would forget about their hunger for a few days. "Let's begin the year of 2016 ... with the thrilling sound of our first hydrogen bomb explosion, so that the whole world will look up to our socialist, nuclear-armed republic and the great Workers' Party of Korea!" Kim wrote in a handwritten message near his signature ( Oh and bring me some peperonni pizza!)

However the fat boy knows he can count on its big neighbouring friend China to help in times of trouble. Theoretically they share the same Communist regime but actually none of the countries government has anything else to do with it rather than a thin facade to fool the masses. Will more and hader sanctions be imposed on North Korea this time or it's again bluffing and cowardice from the UN superpowers?

Saturday, November 14, 2015

Terrorist attacks in France, terrorist attacks in Syria and Iraq

It seems that again the authorities in a major country have been taken by surprise with the recent terrorist attacks. Could they prevent them? Hard to say, on one hand it's difficult for the police, special services, secret services and all the bunch to prevent them but on the other hand different organizations have threatened for months that they will react and commit these acts.

Now it seems that no one took these threats seriously, like yes a couple of terrorists would really blow up our civilized city. Did they ignore them on purpose or they treat them as bluff? Even more they raised the stake when France decided to increase its support again ISIS by sending their biggest aircraft carrier Charles de Gaulle to help with the bombing campaign. They pretty much said : we don't care about your threats, you can't touch us and we're really pushing you some more.

No the French are outraged and cry and for good purpose. Did they expect these terrorist attacks? Did they take the ISIS threats ever seriously? Did the common man ever asked why the French military goes bombing Iraq and Syria? Did they take into account and accept that this would cause ISIS to react?

The world is of course outraged by the events but much of this outrage is because the victims are from a major EU country. Hundreds of innocent victims were collateral victims in Syria, Iraq and Afghanistan because of the US / UK / French planes? When a hospital was blown up by the anti-terrorist forces how many tweets and facebok posts did we see showing compasion for the victims and demanding justince against the aggressors. Oh yeah, the truth is that Europeans, Americans and the rest don't really care about those victims, they are third world country citizens so why bother? It's a sad world we live in and we get to see millions and millions fooled by the media every day and manipulated as sheep.


Monday, October 12, 2015

Russia's strikes in Syria overcomplicates things

Well it only took 24 years give or take for Soviet Un ...hmm Russia to start challenging the US&A again. After following the Arab spring with growling and dismay and seeing the so-called tyrannical regimes following one by one when it came to Syria Russia decided enough is enough.

So the story is pretty simple, same old plan. US&A backs-up some moderate rebels (they are blowing up stuff moderately) which represent a better alternative to the corrupted and blood-hungry regime of Assad. So far so good. These moderate rebels are trained and given weapons by the US&A and start causing mayhem in Syria. No more Assad, we want the same type of flourishing democracy as Afghanistan and Iraq have they probaly shout.

However these guys are not a match for the Syrian army still loyal to Assad to "someone" in the shadows decide to arm and support a more radical group. Some individuals who aren't afraid to behead some journalists or tourists to show off their strong faith to the cause. Let's call them ISIS (formerly known as ISIL). Now these guys own half of democratic Iraq and half of dictatorial Syria and they pretend they're a country an all. Now really, they even have a capital and are issuing licences to exploit oil and build houses and stuff.

Putin on the other hand promises he will wipe out these islamists fanatics (he probably doesn't like competition on lowering oil prices) but the old-technology Russian jets seem to only hit the moderate rebels bases sparkling cries of outrage all accross Washington and their smaller playground London. And during this time Frau Merkel extends a welcome party for all refugees into the European Union. Something smells.

Wednesday, August 19, 2015

The might Chinese dragon is landing - will it crash?

So there you know it, Chinese stock market falling like crazy these days. The big bubble finally burst. I guess it can happen in a communist centralized economy too. However as you would expect the response of the authorities is much stronger in such a state.

For once they forbid selling. Yes, you can do that. And it bruatlly fight the exact cause of prices falling. How can you stop a descending price? Make sure that no matter how small the demand the supply is non-existent.

Second they threw massive amounts of money owned by state banks and investment funds in the market to buy the biggest stocks and sustain artificially the demand.

So far this only stopped the bleeding or better said slowed it. The panic wave hit the nearby markets as well so you can expect stock prices falling in all of the Asians market. Could this be the start of the second wave of the economic crysis? Because make no mistake, the crysis problems weren't solved at all, they just hid the thrash under the carpet.


Monday, July 27, 2015

A referendum to decide if you pay or not?

Well folks you shouldn't be scared of debts anymore. Buy a house, buy a car, get that long-dreamed exotic holiday and do it on credit. Borrow as much as possible and when the time comes to pay just organize a democratic refrendum and vote if to pay or not.

It might seems like a comic movie but this is what happened in Greece. And still 38% of the Greeks decided to pay??? Funny no?

Tsipras tried to pull-it off for real or just to save his reputation? Maybe bluffing like a poker player with a couple of six-ers? Let's see if Germany has the full-house.