Zero Hedge: Deutsche Bank shares are down 6%, at their lowest since Nov 2016 (near post-crisis lows), after warning that euro strength and higher funding costs will weigh on revenue in the securities unit this quarter (just a week after the lender voiced optimism about the outlook for the year).
Bloomberg reports that the company’s corporate and investment bank unit faces a 300 million-euro ($368 million) headwind from the currency effect and 150 million euros from higher funding costs, Chief Financial Officer James von Moltke said at an investor conference in London on Wednesday. more …
Opinion: According to a 2015 Global Research report, the amount of derivatives held by major banks is 1,500,000,000,000,000, that’s 1.5 quadrillion, with a q.
And Deutsche Bank has $45 trillion by itself.
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index). Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes and stocks.
The financial services company I worked for sold a lot derivative investments. Once or twice each year they would march a coordinator from NY into the branch offices to teach advisers how derivatives work.
Typically they are a play on stocks, bonds or real estate. They usually involved a time frame so that if certain movement were to take place within a specific period of time, there would be a gain, and if not, a loss. My rule of thumb was/is if an investment is hard to explain or understand – it is best to avoid it. All branch offices I supervised avoided them, and I would get some heat for that.
These investments are manufactured by MBA whiz-kids with computers. That they are in the quadrillions of dollars is so outrageous that there is no way to unwind them or predict what would happen if they were to blow up. There simply is not enough money in the world with which to solve the problem without a money printing plan so massive that 2008-9 QE would be minuscule by comparison.
The Apostle John used a black horse as the symbol for financial collapse. He prophesied that after the Antichrist is revealed (White Horse, Rev. 6:1-2) and peace was taken from the earth (Red Horse, Rev. 6:3-4) the Black Horse rider (Rev. 6:5-6) would bring a financial collapse so large that famine and disease (Pale Horse Rev. 6:7-8) would follow.
We know from Daniel 9:26 that the final dictator (Antichrist) will come from somewhere in the boundaries of the Roman Empire where Deutsche Bank is headquartered today. And Daniel 7:24 records that the EU will one day collapse and be divided into 10 regions with 10 kings (leaders).
Derivatives are a prime catalyst for the collapse.
It is all written down for us to see. In the first 3 chapters of the book of the Revelation, the church is mentioned 12 times. After Revelation 4:1 the church is conspicuously not mentioned again, until it returns with Christ in Revelation 19:11-16.
Somebody really should call somebody.