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Deutsche Bank Roils E U Market - Bank Of Japan Reels

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Terrel L. Shields

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Meandering

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Randolph Kinney

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Big money has played the central banks buying ahead of them the securities that were at risk of default knowing the central banks would buy the same securities as part of their "liquidity" scheme to paper over the problem.

Deutsche Bank is too big to fail. Big money is buying ahead of the central banks.

Deutsche Bank Puts Germany in a Bailout Bind

Germany’s dilemma over the issue of propping up Deutsche Bank is the opposite of that faced by other European countries saddled with troubled lenders. If the bank were to need fresh capital and become unable to raise it from investors, Berlin would have more than enough fiscal leeway to help.

Few analysts expect that Deutsche Bank could be left to fail or be forced into a bail-in. The risk, many say, would spread far beyond Germany. Deutsche is a large and highly networked bank on a continent replete with fragile lenders and economically hamstrung after years of low growth.

And that leaves the government with few options.
 

Meandering

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Search your tax records by owner for Deutsche Bank,

The REOs they are sitting on were mostly farmed out to some of our big banks, but they are still sitting on many here.
 

Randolph Kinney

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Search your tax records by owner for Deutsche Bank,

The REOs they are sitting on were mostly farmed out to some of our big banks, but they are still sitting on many here.

Banks in general are sitting on defaulted loans and foreclosed homes today. Why is that?

Banks have $2.2 trillion of excess reserves on deposit with the federal reserve.
 

Meandering

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Banks in general are sitting on defaulted loans and foreclosed homes today. Why is that?

Banks have $2.2 trillion of excess reserves on deposit with the federal reserve.

Why?

Let's guess,

Perhaps because they were told to, and were paid to, do so???

I'm not a banker,

but every appraiser should have access to tax records in their area.

check your areas.

.
 

Randolph Kinney

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but every appraiser should have access to tax records in their area.

check your areas.

I have. We have defaulted loans and foreclosures. Yet we have outrageously high real estate prices.

images
 

Randolph Kinney

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Why?

Let's guess,

Perhaps because they were told to, and were paid to, do so???


Excess Reserves

Through fractional banking and high excess reserves, banks can create sudden spikes in financial liquidity, and possibly inflation as well.

Banks in the United States have the potential to increase liquidity suddenly and significantly—from $12 trillion to $36 trillion in currency and easily accessed deposits—and could thereby cause sudden inflation. This is possible because the nation’s fractional banking system allows banks to convert excess reserves held at the Federal Reserve into bank loans at about a 10-to-1 ratio. Banks might engage in such conversion if they believe other banks are about to do so, in a manner similar to a bank run that generates a self-fulfilling prophecy.

Policymakers could guard against this inflationary possibility by the Fed selling financial assets it acquired during quantitative easing or by Congress significantly raising reserve requirements.
 

Meandering

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Janet Yellen is today answering some of those questions in front of Congress concerning banks, and lack of enforcement, yada, yada.

Not looking to pretty with those questions.

But heck, it's a good dog and pony show, none the less.

:sick:

.Throw more money at it.

That always works.

.
 
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