Harry Dent: Everything You Need to Understand On Why Deutsche Bank is Crumbling (Video)

Friday, August 5, 2016
By Paul Martin


In the following interview, Gary Franchi of the Next News Network interviews Harry Dent on the subject of why Deutsche Bank is the most toxic bank on the planet, and how it affects you in the United States. In his initial response to the question of what makes Deutsche Bank so toxic by itself, Harry Dent replies by explaining that Deutsche Bank’s loan portfolio is incredibly high risk, including but not limited to the fracking market in the U.S. which was relying on $100 barrels of oil. If you haven’t looked recently, oil is currently selling at around $40 a barrel, so those loans are as good as dead. It’s not just U.S. markets either, Deutsche Bank’s European loan portfolio is awful too. In addition, their exposure to derivatives is also among the highest of the banks.

As a result of its poor performance, Deutsche posted a $7 Billion loss in the 4th quarter of last year, and 1st Quarter of this year they were lucky to break even at $0. All of that doesn’t even take into account the fact that we’re heading into a major global economic crisis.

Originally, some economists thought that Deutsche Bank would not get any bailout money from the central banks, but rather would depend on Italian banks. Unfortunately for Deutsche, on average Italian bank loan portfolios are at 18% non-performing. Considering most banks only keep 10% assets on deposit to cover losses, that puts most of them in bankruptcy any time now.

If you recall, back in February, Dr. Jim Willie warned that when Deutsche Bank falls, Barclays, Citigroup, and many more will fall like dominos with it, and already we’re seeing major bank failures in Europe and Japan. Harry says the only market that can keep going up under these global conditions is on crack, and U.S. markets are on just that… crack! The crack he’s referring to is all the borrowed cheap money that is inflating the biggest financial bubble in history. When it finds the pin it’s been searching for, investors can get wiped out over night.

Not since 1929-1932 has the market been set for this big of a nosedive. Harry warns of a once in a lifetime crash coming, so he suggests selling everything you own now, and then waiting the market out. He believes that in about two years stocks will be trading at 10-20% of what they are now, and then it’s time to going on a buying spree.

Harry’s theory is a sound one except in one situation, and it happens to be a very likely one. Even if a person sells everything now, and assume they realize huge gains, when the Dollar collapses (and it will), if those gains are held in U.S. denominated assets, they’ll be wiped out just as if they were in stock. It might be wise to look to into tangible assets as a means to store any gains made. Sure, there’s volatility there, but that beats a nosedive!

The Rest…HERE

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