Was Deutsche Bank Just Kicked Out of the Banksters’ Gentlemen’s Club?…” if Deutsche Bank has been kicked out of the gentlemen’s club, they have been allowed to carry the red button kill switch called derivatives with them!”
SilverDoctors.com
May 20, 2016
Is it possible the clan of monster derivatives banks is a very small club and Deutsche Bank “ain’t a member anymore” because they turned rat?
This certainly bears watching because if Deutsche Bank has been kicked out of the gentlemen’s club, they have been allowed to carry the red button kill switch called derivatives with them!
Submitted by Bill Holter:
For many years we have warned of the dangers of derivatives. We were laughed at leading up to the 2008 financial debacle when Lehman broke and nearly took the entire system down. That turned out to be no laughing matter and here we are again at exactly the same situation where derivatives threaten to melt the financial system again. The difference now of course is the “saving ammunition” has already been spent where sovereign treasuries and central banks have destroyed their own balance sheets.
Two weeks ago, the Fed announced a “48 hour stay in place” provision for for collateral of any derivative contracts where the big banks are involved. The idea here is to prevent collateral being pulled by the survivor for 48 hours should the bank counterparty become insolvent.
This will give the Fed a window of time to get the fire hose of liquidity out and reliquify a large bank’s balance sheet before they can break the derivatives chain. But what does this really do? Does it make derivatives any more sound or does it really just add more risk to central bank balance sheets and thus the currencies themselves?
It is very important to understand just how important derivatives have become. Derivatives have been used to push, pull, manhandle and outright price many global markets. They have been used to paint a picture as “proof” the Alice in Wonderland markets are in fact real. Not even one single market can get out of control because “truth” anywhere will lead to TRUTH everywhere! Even one single market left alone to Mother Nature will lead to questions that cannot be logically answered.
First, these provisions being proposed by the Fed are not set to begin until August 2017. I cannot imagine markets holding together this long, in fact, I would give less than 50/50 odds the U.S. actually has an election this November, rigged or not. Next and more importantly, the Fed is actually saying “we will be the backstop” to ALL of the derivatives given the 48 hour window to “fix” the problem at a specific bank.
The Rest…HERE
