Deutsche Bank Is Collapsing – But It’s Not The “Black Swan”

by David Kranzler
Investment Research Dynamics

The global financial system is close to going supernova.

Both Credit Suisse and Deutsche Bank stocks are hitting all-time lows. Both are collapsing despite billions in Central Bank – Fed, ECB, Bundesbank, Swiss National Bank – monetary support.

Deutsche Bank had been advertising a 5% interest rate to customers in Belgium on 90-day deposits of at least 50k euros . Bank deposits are essentially “loans” to a bank from the depositor (creditor). This implies that the rate that DB had to pay to attract deposits is equivalent to a triple-C rated credit (although the 10-yr junk bond rates for double-B rated bonds are around 5.5%, keep in mind that DB is paying 5% for 3-month money). This is the unmistakable sign of a company that is collapsing.

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