Bank Watch, page-2018

Looks like Europe can't escape the trap of easy money.

I love this quote from the article

"No free market type person probably wants to see what amounts to corporate welfare, but those people will also not hesitate to profit from that situation if possible."

What does this guy think has happened in the last 20 years. The whole market is on Fed, BOJ and ECB printed welfare. There is nothing free about any of these markets.

Then I like this comment more specific to DB.

"Those that have been following that stock will be all too aware that Deutsche’s problems go beyond economic weakness in Europe. They have been missing earnings expectations for a while, seeming unable to reign in massive costs and facing persistent legal issues that, as this Arjun Reddy articlepoints out, have resulted in fines that are roughly equal to the company’s entire market cap.

The same piece also indicates that virtually every analyst on Wall Street is now negative on DB. Regular readers (god bless ‘em) will not be shocked to hear me say that, to me, this is a good thing.

It means there is a good chance that all the bad news around Deutsche is known and accounted for. That doesn’t automatically mean that the stock is going higher, but it does makes it more likely and, equally importantly, limits the chances of a dramatic drop from here. It also means that anything that resembles good news could have an exaggerated effect."

Every piece of bad news around DB is known and accounted for? This guy didn't learn from the GFC. The last piece of news that creates the black swan event is normally somewhere off the bank's balance sheet (someone elses problem). By the time that news breaks it's too late.

Fines that are roughly equal to the banks market cap!!! Seems like the only model this bank had to make money was by bending and breaking the rules.

In anycase more easing isn't bad for gold. The real turbo boost will come when the central bankers knuckle down and figure out how they are going to wipe the piles of debt out of the system. No wonder they have been buying record amounts of gold of late. Esh

Did the ECB Just Offer Deutsche Bank (DB) Some Much Needed Relief?

https://www.nasdaq.com/article/did-...che-bank-db-some-much-needed-relief-cm1110837