“Europe is extremely sick” says Deutsche Bank chief economist




Brussels urgently needs a €150 billion bailout to begin a major recapitalization program for its banks, according to Deutsche Bank’s David Folkerts-Landau.

In the aftermath of UK’s Brexit vote, the focus of attention has switched to Italy’s banking sector, which has accumulated €360 billion in bad loans, and growing.

A former member of the ECB executive board Lorenzo Bini Smaghi, and now chairman at Societe Generale, has warned the banking crisis in Italy could spread to the entire EU.

“Europe is extremely sick and must start dealing with its problems extremely quickly, or else there may be an accident. I’m no doomsday prophet, I am a realist,” he said in an interview to Welt am Sonntag.

According to Folkerts-Landau, Brussels should follow Washington’s steps that helped US banks with a $475 billion bailout.

“In Europe, the bailout does not need to be so large. A €150 billion program should be enough to help European banks recapitalize,” he said.

The decline in bank stocks is only the symptom of a much larger problem, which is low growth, high debt and dangerous deflation, Folkerts-Landau added.

Over the last 12 months, Deutsche Bank shares have plummeted 48 percent. Another major European bank, Credit Suisse is down 63 percent since July 31 last year. All in all, the Bloomberg Europe 500 Banks and Financial Services Index has nosedived 33 percent in 2015 to the lowest level in more than seven years as of last Thursday.


have a look in your own backyard mate..DB is the new Lehman!

“The decline in bank stocks is only the symptom of a much larger problem, which is low growth, high debt and dangerous deflation, Folkerts-Landau added.”

oh..so its our fault..of course..


~ by seeker401 on July 13, 2016.

3 Responses to ““Europe is extremely sick” says Deutsche Bank chief economist”

  1. […] via “Europe is extremely sick” says Deutsche Bank chief economist — Follow The Money […]

  2. We need to get some fast euro printing machines like the Fed – this will solve all problems .

  3. The U.S. Fed bank does not “print” money, it authorizes the Treasury Dept. to print it. And it is not really “money,” it is corporate scrip, a bank note…the Fed is a privately owned bank, with other banks for stockholders that get a set guaranteed interest rate, regardless of what the economy is doing (last I heard it was 6%, but that was a few years back). This translates into the major stockholders of the member banks receiving a constant & dependable money flow like no other investor can get…and you must pass a “wealth litmus test” to buy this stock, it is closely held.
    Most of what we call “money” is created through fractional reserve lending, which simply requires each bank to hold 1 dollar for every 9 dollars it lends out…in other words, if a bank has 100 actual dollars, it can loan out 900 dollars created out of thin air…and if it loans it to another bank, then that bank, in turn, can create 9,000 dollars out of thin air to loan, and so on down the line.
    The U.S. Treasury, however, CAN mint coins. And I think, after the next crash, when the government has no tax revenue coming in & it is at the end of what it can borrow, you’ll see the minting of those “trillion dollar platinum coins” you may have heard about…it will be the only way the government will be able to stay compliant with the Constitution & not default on what it owes, not to mention maintain it’s normal operations.
    I think a lot of countries will be turning to this, much to the chagrin of the international banking cartels, who depend on debt (and bribery) to enslave nations.

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