Deutsche Bank collapses under the blows of finance: what now?
The good news is that Italian banks they are the most solid of the continental system. Forced into excessive rigor because you consider the “pierine” of Europe, today they find themselves an excellence in a landscape that is once again tense. The bad news is that banking has the flu again. Soon to tell if it’s a simple cold or something more serious. But certainly the signs are starting to be disturbing.
Once again, it is not real phenomena that are shaking the economy, unemployment, the drop in orders or who knows what other problem. No, we are once again faced with complex financial instruments that have turned the hands of time back 15 years. Deutsche Bank today collapsed on the stock market because the CDS, credit default swaps, i.e. insurance against insolvency, have seen their yields shoot up. Which means only one thing: analysts fear that the German giant is not as solid as it wants to believe.
The words of Chancellor Scholz who called for calm came to no avail. For months there has been talk of derivatives in the belly a Deutsche Bank. It has long been feared that the Teutonic bank was not – to put it mildly – among the most solid. And punctually, now that dark winds are gathering on the banks, here we are again. If the German institution loses 30% of its capitalization in Stock market within two weeks means that lenders are not safe at all.
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