http://sputniknews.com/business/20160718...blems.html

"
In June, the International Monetary Fund (IMF) labelled Deutsche Bank as the most risky global financial institution. Experts do not believe the bank will suffer the same destiny as Lehman Brothers. But if it does this would be a global financial catastrophe.
[...]
A Domino Effect

The German financial sector plays a key role in the global economy. According to the IMF, the German asset management market is the third-largest in Europe. Germany’s sovereign bond market is a safe haven for investors.

There are 2 of the 30 global systemically important banks in Germany, Deutsche Bank and Allianz SE, according to a report by the Financial Stability Board.

Germany also has one of the world’s largest derivative exchanges, Eurex Exchange, as well as a multitude of smaller bank and financial companies.

According to the IMF, in Germany, Deutsche Bank is linked with other publicly traded banks and insurance companies and could be a source of their financial contagion.

If the situation in the German financial system deteriorates it is very likely to trigger a chain reaction and a global banking crisis. However, the possible aftermath for the global banking system is expected to be more serious than for German banks, the IMF warned.

"In particular, Germany, France, the UK and the US have the highest degree of outward spillovers as measured by the average percentage of capital loss of other banking systems due to banking sector shock in the source country," the report read.
"


Idiot bankers didn't learn their lesson in 2008... maybe they will in 2017... somehow, I doubt it...

(July 21, 2016 at 4:40 am)pocaracas Wrote: Idiot bankers didn't learn their lesson in 2008... maybe they will in 2017... somehow, I doubt it...

What lesson, poca? The only lesson to be learned for bankers was impunity. Not only got they away scot free but were paid an obscene amount of money for running the global economy into the ground. There was no lesson to be learned from the banker's perspective.

That's what's wrong with our system in general. It doesn't encourage responsibility but risk. The ones running the show seldomly end up at court but at a nice seaside mansion.

(July 21, 2016 at 4:47 am)abaris Wrote:

(July 21, 2016 at 4:40 am)pocaracas Wrote: Idiot bankers didn't learn their lesson in 2008... maybe they will in 2017... somehow, I doubt it...

What lesson, poca? The only lesson to be learned for bankers was impunity. Not only got they away scot free but were paid an obscene amount of money for running the global economy into the ground. There was no lesson to be learned from the banker's perspective.

That's what's wrong with our system in general. It doesn't encourage responsibility but risk. The ones running the show seldomly end up at court but at a nice seaside mansion.

Indeed... we need to replicate what happened over in Iceland...

This is the problem with privatizing profits and socializing losses ...

(July 21, 2016 at 4:59 am)Mathilda Wrote: This is the problem with privatizing profits and socializing losses ...

Exactly. That's why I always say I subscribe to the free market but not capitalism. Capitalism, at least in the financial sector, is the biggest moocher of them all. If they fail, they're bailed out at the expense of the population at large. If they win, their shareholders get the goods.

Is the world preparing for another GFC? I wouldn't have thought so.

For those of us old enough to remember the Savings and Loan financial debacle, and the $400000000000 taxpayer underwritten bailout that resulted in NO rioting and scarcely NO members of congress held responsible at the ballot box next election, the continued chain of financial implosions comes as no particular surprise.

Well at least we'll always have communist parties to join...

When it comes to world crises, many believe we live in decisive century. Our problem about ecology is a decisive one if we'll survive or not as species. - Will we be able to survive/solve it?

Next big problem will come in something like 100 million years when Sun becomes too hot. Will the humans have to leave Earth? Push it further from the Sun? Build a shield from the Sun? Will they be able to solve it?

Next problem comes somewhere in 4 billion years when simultaneously our galaxy crashes with Andromeda galaxy and our Sun seriously starts to die. Will humans leave Sol or even the whole Galaxy?

Next problem comes even few more billion years when universe becomes messed up. Some scientists believe that because of that some dimensions that are now small will become so big that our kids will be able to go trough them somewhere safe, therefore that problem seems to be easiest to solve - just walk.

I think the next big problem is global warming.
Sure, everybody knows about it, but not many seem to realise that we're talking about eventual human extinction in our children's lifetime.
And it's almost definite that nothing will be done about it until it's too late. Human nature.
Over-population is also a worry. When half the world is starving to death we'll need another planet to grow crops to feed them and not long after that we'll need another two and so on.

(July 21, 2016 at 4:59 am)Mathilda Wrote: This is the problem with privatizing profits and socializing losses ...

A bit dramatic considering the fine display of socialism Venezuela is putting on. I'll take an imperfect system and the occasional recession over the guarantee of squalor promised by centrally controlled economies any day.