The usual suspect, Deutsche Bank, the shadowy region whose balance sheet was already in 2016 as earthquakes wreaked havoc on stock markets across Europe, is once again in the spotlight. And what we are living now is quite similar to what was written in the film written by George A. Romero The Return of the Financial Zombies. Thus, and just as then, the first tremors beneath the surface of the belief system were felt across the Atlantic, and soon the capacious movements cracked the foundations of the great temples of money, so solid and deep they seem. they transferred themselves to Europe.
In the introductory chapter of the RATIONALE manual, it can be read that the purpose of this art of keeping business accounts is to offer a reliable, reliable and truthful image of the company’s assets. But if bank prices are collapsing everywhere, that is because the professional traders and fund loan managers, the people who know the most about the two pillars, the credit and debt pillars of the banking giants of the European Union and the United Kingdom, do the numbers listed there, I don’t think they answer; Not only do you not believe. How is it to be understood, except that the shares of Deutsche Bank, a publicly traded company, can fall on the floor in this way?
Moreover, his reasoning is as simple as it is supposed, that no one can sell a commonwealth, whose interest is 2%, and another government bond whose yield is 4% has arisen. Since the second is published, logically the first will be less valid. And the banks, both in Europe and in the United States of America, happen to have their own full first-class, old bonds. Although they don’t say that any of the newspapers have now become smaller. However, this tendency of banking documents to dangerously resemble poetic literature is common to Europeans and North Americans, but where the storm really rages, not in North America; which invites us to suspect that some particular being of ours must be distinguished from them. But that which is proper is called greatness.
“There is no country in Europe that would be able to rescue, if necessary, monsters of such dimensions. Believing that this can be done from a chimera.
It happens that the United States of America has a larger army in general than the Europeans. But in the financial sector, just the opposite: the big European banks are much bigger, in terms of size/land borders, than their North American counterparts. There are few notable financial behemoths in the United States, yes, but they are real dinosaurs compared to their natural habitat in Europe. Seven years ago, when Deutsche Bank first began guarding EU finance ministers at night, its consolidated balance sheet was equivalent to 80% of Germany’s GDP. The affairs and rights of one private place, one by one, were not too far removed from that which produced the greatest, most famous, and richest year in Western Europe.
But precisely in these times, while the price of its shares continues in free fall, its immense size is no less impressive. Specifically, the debt column in Deutsche Bank is equivalent to a balance sheet, the euro up, the euro down, the GDP of Spain in 2022. Nothing quite like that exists in America. Worst of all, not alone. Because in Europe there are few banking entities that are involved in the same scale. In Great Britain alone, the four main national credit institutions have liabilities that far exceed 400% of GDP. There is no country in Europe which, if need be, could rescue monsters of such dimensions. Thinking that such a thing is possible is a chimera. So let’s cross our fingers. It’s just that.
