Dr. Jim Willie: Deutsche Bank Valued at -$1 Trillion; Economic Chaos Ahead
BY VOICE OF REASON
THELASTGREATSTAND.COM
SATURDAY, JULY 2ND, 2016
Just before the weekend, Dr. Jim Willie made time for one last interview with TF Metals right before the 4th of July weekend. Slightly different than most of the interviews you hear, the format in this instance was such that subscribers got to ask the majority of the questions that concerned them, and the end result is 90 minutes of in your face Jim Willie that you won’t want to miss! As usual, the interview was great fun, extremely informative, and Jim answered questions on at least 20 different topics.
Before the subscribers are ready with their questions, the first 20 minutes Dr. Willie goes on a wild rant that dealt primarily with Deutsche Bank, a topic that has become all too familiar, and what he expects the impact of Brexit to be on Great Britain, NATO, and ultimately the relationship between the U.S. and Britain.
ON DEUTSCHE BANK:
On the topic of Deutsche Bank, Jim begins by saying that the head of the IMF said earlier this week that Deutsche Bank poses a systemic risks to the global banking system as a whole, however we already knew that (or anyone who listens to Dr. Willie knew that anyway). Dr. Willie adds a few key pieces of information.
In his last interview before the long weekend, Dr. Willie said if you chart the current stock decline of Deutsche Bank, and superimpose it with that of Lehman Brothers during their decline of 2007-2008, you’d be able to see they are almost a perfect match, which gives Deutsche Bank just a few months at best before going belly up. What he said next should chill everyone banking in Italy, Portugal, and Spain to the bone.
The same person who tried to give a valuation to Lehman in 2007 recently did the same for Deutsche Bank. Despite his best efforts to be conservative in 2007, the estimates were off by 250%. In other words Lehman was valued at 2.5x less than originally projected when the dust settled. Using the same conservative formula, Deutsche Bank’s current valuation puts it at -$400 Billion. If the same factor of 2.5x is applied, it means Deutsche Bank is a $1 Trillion Dollar ticking time bomb.
From there, Dr. Willie said there is good news and bad news. The good news is, Deutsche Bank will most likely be propped up, and deemed too big to fail. The problem he explains, is that a policy of too big to fail banks only does one thing: saves the banks and destroys the economy. Furthermore, Dr. Willie said if Deutsche Bank is propped up, more than likely Italian banks would fail, which would in turn cause Deutsche to collapse. All in all, he said the prognosis is god awful!
The Rest…HERE
