High leverage, risky bets on derivative markets, economy on a leg down, overvalued assets = recipe for desaster?
“IMF said that, of the banks big enough to bring the financial system crashing down, Deutsche Bank was the riskiest. Not only that, Deutsche Bank’s US unit was one of only two of 33 big banks to fail tests of financial strength set by the US central bank earlier this year.”
How Deutsche Bank & High Risk Bets Can Cause the Collapse:
Maybe they will not be the next Lehmann. Maybe they will be the first domino stone to fall, more like Bear Stearns. Will the German government have funds and willingness to bail them out? What is the lesson from 2008?
Now, go and cash-out as much as possible from your real estate portfolios. I’m signing another 1003 while I post this.