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Year after year, it is the same doom and gloom but no collapse is happening and no bank is failing? If you are a skeptical viewer and you should be, then these must have been some of the first thoughts that would have come in your mind after reading the title of this video.
Of course no one can predict exactly when the next big stock market crash is going to hit. It is like a storm, you can see it coming, you can see the dark clouds gathering, layer by layer. You can see them blocking out the sunlight and when you feel the wind picking up what do you do? You do not stand outside to get blown away, no..any sane person would go and take cover to ride out the storm. Unless you are a storm chaser..anyway.
The same analogy holds true for the collapse of Deutsche bank. Back in 2008, did any one see the failure of Lehmann brothers coming? Probably many people saw that bank collapse is coming.. but no one could tell exactly when it would happen! The banks and other financial institutions were busy in painting a rosy picture to the investors right till the moment the stock markets crashed. So do not be fooled into thinking that just because no one can tell the exact moment of the next big economic collapse, that it wouldn`t happen!
The deutsche bank collapse is just around the corner, the next big economic collapse will happen because of the failure of Deutsche bank and it will take down the global economic system with it. Why? Because Deutsche bank has got a very high rate of systemic risk, this means that too many financial institutions are involved with Deutsche bank, it is simply too big and you know what they say. The bigger they are the harder they fall.
Deutsche bank has a shady past, shady deals, misrepresentation and fraud, money laundering and fraudulent selling of high risk financial securities to unsuspecting investors. As the bank grew to mammoth proportions, some of the skeletons in its closet began to come out. The bank has in the last 4-5 years lost billions of dollars in penalties and fines over various charges and this has taken a toll on its finances and reputation.
Since the 2008 stock market crash, the stock price of Deutsche bank has also tanked and now it is trading it a lowly $8 down from its peak of $162 at one point in time. For consecutive years, the bank has posted losses and the last set of financial statements show a stellar loss. Investor confidence in the bank is at an all time low, the bank has a new CEO who is trying to restructure the bank to save its fall from grace. But is that going to work? Will these frantic last ditch efforts be able to prevent the bank from failing and triggering the next economic collapse?