collapseSo unless Deutsche Bank pulls out a Hail Mary earnings report with strong guidance expect a DOWNGRADE of Deutsche Bank to BELOW investment grade in the coming weeks.
There is only so much lipstick you can put on a pig like DB…

Jim Willie gunWould a Collapse of Deutsche Bank really be 5 x Bigger Than the Collapse of Lehman Brothers?
The Doc Joined Kennedy Financial to Discuss the Biggest Risks Facing the Global Financial System…

LehmanI think we’re going to have an uncontrollable situation with the Italian banks, maybe resulting in the implosion of Deutsche Bank.  
Deutsche’s stock pattern is following Lehman’s in 2008.  If you overlay their charts, Deutsche Bank has maybe 2 or 3 months left…

gold manipulationIn a surprising development, a group of plaintiffs in an antitrust litigation case against Deutsche Bank, HSBC Bank plc, the Bank of Nova Scotia, and UBS AG, have just announced that Deutsche Bank is in the process of negotiating the formal terms of a settlement agreement with the plaintiffs:

UntitledWhen a bank has been forced to issue a statement defending its solvency, insolvency is not far behind.  We saw this with Bear Stearns and Lehman.
Denial of a catastrophic problem is affirmation that the problem is very real.

A Deutsche Bank logo adorns a wall at the company’s headquarters in Frankfurt, Germany. © Ralph Orlowski / Reuters

Germany’s troubled Deutsche Bank has hit the headlines once again. This time for erroneously transferring $6 billion to a hedge fund client’s account.

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notforsaleWith gold and silver in the early stages of what appears to be a MAJOR trend change, The Doc and Eric Dubin break down all the action, discussing: 

  • Fed Reverse Repos Supernova- 3 Alarm Fire at the Fed & ECB! 
  • Silver Shortage Eases As Premiums Decline Slightly- Were Metals Dealers Holding Back Silver Inventories? 
  • Derivatives Crisis Underway? HUGE Behind the Scenes Operations Attempting to Put Out MASSIVE FIRES
  • Eric Explains Why Deutsche Bank is a “Time Bomb That is Going Off at Some Point!

    The SD Weekly Metals and Markets With The Doc and Eric Dubin is Below:

collapse crashWith the news of the massive writedowns, losses and other issues at German banking giant, Deutsche Bank, I thought it best to ring up our pal and Fund Manager Dave Kranzler in order to see what he makes of it all.

nuclearA source with connections at DB told me yesterday that his sources describe Deutsche Bank as a toxic junkyard of chaos and complete unaccountability.  In my opinion the German Government/EU will eventually either have to print money and monetize DB… or its demise will trigger Lehman x 10.

dynamiteThe sudden big spike up in Fed reverse repos in mid-September indicate that there was a derivatives accident that required the Fed to flood the global financial system with Treasury collateral, which is used to satisfy derivatives margin calls.
DB is not only now the lethal sovereign risk of Germany, it is the sovereign risk of the entire EU.

Whereas Bear Stearns the Lehman triggered the Great Financial Collapse in the U.S., Deutsche Bank could potentially trigger the collapse of the global financial system.

MI-CB391_PECK_G_20140218184730Looking back at the Lehman Brothers collapse of 2008, it’s amazing how quickly it all happened.
In hindsight there were a few early-warning signs, but the true scale of the disaster publicly unfolded only in the final moments before it became apparent that Lehman was doomed.
Could this happen to Deutsche Bank?

Physical silver bullion sales exploded at SDBullion Wednesday, hours before the London Fix price setting mechanism was set to end on August 14th.  
The London fix, which has been in place for 117 years dating back to 1897,  announced in April that the daily silver fix would end on August 14th, when Deutsche Bank, under investigation by Germany’s BaFin for market manipulation vacated its seat and was unable to find a buyer.

SDBullion trader Jennifer Linhart stated that physical silver sales were five times normal volume Wednesday, as investors scooped up bullion ahead of any market disruption the end of the fix might cause:
“The phones were ringing off the hook all day, and silver sales were about 5 times normal for the day.  We didn’t see much of any change in gold, everyone was buying silver.”