The Financial System Is On The Cusp Of Collapse

by Dave Kranzler, Investment Research Dynamics:
DB stock is now in a full panic sell-off as I write this. It just hit another new all-time NYSE low on by the heaviest volume ever in the stock since its 2001 NYSE listing. It’s currently down almost 10%. No doubt the Central Banks will try to bounce it.
Deutsche Bank may well be the scapegoat this time around just like Lehman was the scapegoat in 2008. Central Banks in collusion can prevent just one bank from collapsing. It was the co-collapsing of AIG and Goldman Sachs that prompted then-Secretary of Treasury, ex-Goldman CEO Henry Paulson, to put in motion the bailout of the U.S. and European banking system.
Yesterday it was reported that the rate the Fed charges the banks to borrow collateral surged to its highest rate in 7 years – LINK. The rush to borrow collateral was no doubt prompted by OTC derivatives-related counter-party collateral calls. A collateral call is like a margin call in a stock account. This occurs when a derivatives trade goes south for an entity that is on the long side of the derivatives bet – a bet that Deutsche Bank won’t default, for instance – and the counterparty to that trade demands more collateral to be posted in order to insure that the bet can be paid off if the “long side” loses.
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THE WORLD IS ON THE EDGE OF A DEFLATIONARY BLACK HOLE

by Egon Von Greyerz, Gold Switzerland:
The world economy is now at its most dangerous point in history. In virtually every major country or region, there are problems of a magnitude which individually could trigger a collapse of the financial system. Because of the interconnectivity of the system, when the first domino starts falling, there is zero possibility to stop all the other unstable dominoes from crashing one after the other in quick succession.
The world is now staring down a deflationary black hole that is on the verge of sucking into it all global debt of $250 trillion plus unfunded liabilities and derivatives of another $2 quadrillion or so. That would be the end of the financial system as we know it. Governments and central bankers around the world are of course totally aware of this and are standing with their fingers ready to push the button for the biggest money printing bonanza that the world has ever experienced.
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Largest Dutch Bank To Fire Thousands

One day after Germany's second largest lender confirmed reports of a massive restructuring when it announced it would lay off nearly 10,000 employees, or about 20% of its entire workforce while slashing the bank's dividend for the rest of the year, the Dutch newspaper Het Financieele Dagblad reported that ING Groep, the largest Netherlands lender, will announce thousands of job cuts at its investor day on Monday.

As Europe's Dollar Shortage Intensifies, Funding Pressure Surges Most In 4 Years

As the world wakes up to the fact that Deutsche Bank is not Lehman - it's massively bigger, and massively more systemic, oh and it has depositors -  contagion is spreading through global funding and asset markets.

I’m in Awe of How Fast Deutsche Bank is Falling Apart

by Wolf Richter, Wolf Street:
Counterparties lose confidence, withdraw cash.

Deutsche Bank, with $2 trillion in assets, amounting to 58% of Germany’s GDP, one of the most globally interwoven banks, with gross notional derivatives exposure of €46 trillion, right at the top along with JP Morgan (booked as €41 billion in derivative trading assets after netting and collateral) – this creature of risk and malfeasance, is finally starting to scare its counterparties.
This is how Lehman came unglued. Slowly and then all of a sudden.
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Stocks Soar After French Press "Confirm" Deutsche Bank Near Settlement With DOJ

Seemingly confirming the rumor, Agence France Press reports that Deutsche Bank is nearing a $5.4 billion settlement with the US Justice Department. This has catalyzed another leg higher in Deutsche Bank stock and lifted the whole market as it would appear that unconfirmed sources have 'fixed' the world's most systemically dangerous bank (despite the fact that short-dated counterparty risk is soaring).

Atlanta Fed Q3 GDP Estimate Tumbles To 2.4% From A High Of 3.8%

Until today, the Atlanta Fed's Q3 GDP estimates used to be well higher compared to Wall Street's own forecasts. No more.

Everything You Need To Know About Gold In 50 Stunning Slides

This Is The Rumor Causing The Spike In Deutsche Bank Shares

The catalyst for the DB spike is again a rumor.  There has been trader unsubstantiated speculation - launched on Twitter - that the bank may reach a lower RMBS settlement with the U.S. DoJ than feared. As Bloomberg seriously notes: "unverified handles on Twitter speculate the DoJ fine may be $5.4b, vs reports earlier this month the DoJ had sought $14b. Unverified handles including @fiatcurrency, @Fxmacro Tweet or retweet the speculation."

This Is How Much Liquidity Deutsche Bank Has At This Moment, And What Happens Next

Following today's Deutsche Bank fireworks, Goldman reports that "crisis” questions are being asked: “is there risk of a financial crisis re-run” and “can a large European bank face a liquidity event”? To answer these questions we look at the total liquidity accessible to Deutsche Bank, and what are the options facing the bank next.

Chicago Fed Bounces But Employment Slips

"Economic growth in the US appears to have picked up a little at the end of the third quarter," reports MNI as September's Chicago Fed ticked up to 54.2 (better than the 52.0 expectations). Most subindices rose but notably employment fell. While excuses grow around the nation for disappointing data, 79% of Chicago panellists said the run-up to November Presidential Elections is having a negligible impact on business.

Deutsche Bank Yield Curve Inverts As Counterparty Risk Hedging Spikes Despite DoJ Rumors

As the mainstream media attempts to mollify the ignorant masses with rumors of reduced DoJ fines for DB (as if that the problem now), professionals are buying counterparty risk protection at the fastest pace in history.

Hunter S. Thomson's Prescient 1972 Warning

While on the campaign trail in 1972, Hunter S. Thomson issued a dire warning that is more true today than it ever has been...

"Wrong Way Gartman"

Gartman: "This Selling Cascade Could Become Very Serious Indeed"

"We take this rather uncommonly large number of “reversals” very seriously, and given that this is the quarter’s end we’d not be at all surprised to see this selling cascade today and become very serious indeed."

Gold & Silver Are Spiking

With USDollar liquidity demand soaring in Europe, and Lehman-esque systemic risk concerns re-emerging from the shadows, it appears the safe haven bid for protection from the folly of politicians and central planners is alive and well...

US Spending Disappoints In August As Savings Rate Rises For Second Month

After pesonal spending growth slowed modestly one month ago, rising 3.8% Y/Y, in August US consumption once again disappointed, staying flat in the month, below the 0.1% expected sequential rebound, although this was offset by an upward revision to the last month's data from 0.3% to 0.4%. On an inflation adjusted basis, as feeds into the GDP beancount, Real PCE dipped -0.1% in August, well below July's 0.3% bounce, missing the expectation of a 0.1% rise while the Core PCE Index was inline with the 1.7% expected on a Y/Y basis.

Deutsche Bank CEO Writes Memo To Employees, Blames "Speculators", Confirms Liquidity Flight

"Our bank has become subject to speculation. Ongoing rumours are causing significant swings in our stock price. ... Trust is the foundation of banking. Some forces in the markets are currently trying to damage this trust."

Philippines President Compares Himself To Hitler, One Week After Telling Brussels "F**k You"

"There are three million drug addicts (in the Philippines). I'd be happy to slaughter them. "If Germany had Hitler, the Philippines would have...," he said, pausing and pointing to himself.

Global Stocks Slide As Deutsche Bank Fears Rise: Flight To Safety Boosts Bonds, Bullion

Global stocks continued their selloff this morning, driven by surging speculation about the liquidity, solvency and viability of Deutsche Bank, which plunged 9% after opening in German trading today, dropping to a new all time single-digit low of €9.90, while its default risk soared to new all time highs.

Will The ECB Buy Stocks?

With The SNB and BOJ already neck deep in their equity-buying experimentation, and even Janet Yellen hinting at it for The Fed, the most pressing question on most liquidity-hunting central-planer-watchers is - when will Draghi start buying stocks? The short answer, from ABN AMRO, is ECB equity purchases are unlikely in the near term.. and even so, The ECB would be increasing the risk on its balance sheet for uncertain, and at best modest gains in economic growth and inflation.

Cheat Sheet: The Third Party Presidential Candidates

It’s coming closer to election time, and it’s hard to shake the feeling that something crazy or unprecedented could happen in the coming months... and for the first time in almost 20 years, the third-party candidates are getting attention across the board.

France's New Sharia Police

The silence of politicians and human rights organizations, when non-Muslim women are violently assaulted because they wear shorts that are not compatible with sharia -- as opposed to their thundering indignation against police for issuing a fine to a Muslim woman in a burkini -- signals an immensely important political and institutional move...

Cash Funding Shortage Soars To Highest Since Financial Crisis In Repo

DEUTSCHE BANK HANGS BY A THREAD ON EVE OF JUBILEE

by Jeff Berwick, The Dollar Vigilante:
Nearly a year ago to the day, on September 28th, we wrote “Will Deutsche Bank Be This Cycle’s Lehman Brothers?”
In it we asked, “In 2008, the financial crisis was set-off by the collapse of Lehman Brothers. Could this year’s crisis be caused by a collapse of Deutsche Bank?”
The day after the end day of the Shemitah in 2015, on September 14th, Deutsche Bank announced that it was laying off 23,000 employees, about 25% of its workforce.
At the time, it was trading around $26 per share.
Now, on the eve of the end of the Jubilee Year, Deutsche Bank was down another 7% on Thursday and is now at an all-time low near $11.50.
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US Threatens to Launch Terrorist Attacks in Russia

from Hang The Bankers:
In extraordinary comments that have gone virtually unnoticed by the media, U.S. State Department spokesman John Kirby threatened Moscow with terror attacks in Russian cities and even shoot downs of Russian jets if Vladimir Putin continued his fight against ISIS in Syria.
“Extremist groups will continue to exploit the vacuums that are there in Syria to expand their operations, which could include attacks against Russian interests, perhaps even Russian cities. Russia will continue to send troops home in body bags, and will continue to lose resources, perhaps even aircraft,” Kirby told reporters at Wednesday’s press briefing, adding that if the war in Syria continues “more Russian lives will be lost, more Russian aircraft will be shot down.”
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Tucson Police Officer Speaks Out-Black Lives Matter Is a Fraud-Most Blacks Respect the Police

by Dave Hodges, The Common Sense Show:
I recently had a police officer write to me about what they are discovering are the feelings of everyday black people toward whites as well as the police. I removed all the personally identifying information because the police can be so vindictive toward their own.
Contrary to the MSM, Most Blacks Do Not Hate White People
Black lives do matter, but so do all other lives. The organization, Black Lives Matter, founded and funded by former Nazi, George Soros, is a despicable group. Myself and many others have concluded that Black Lives Matter is a fraud as well as a terrorist organization. There only purpose is to stir feelings of racial division that otherwise would not exist to a large degree. And they certainly they do not represent the views of the majority of black people.
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Hedge Funds SHORT Deutsche Bank Forcing Germany to Need BAILOUT!

from The Money GPS:

Strange Deaths of JPMorgan Workers Continue

by Pam Martens and Russ Martens, Wall St On Parade:
Last Thursday, September 22, 2016, the body of Ann Korkki, a Senior Administrative Assistant in the Wealth Management division of JPMorgan Chase in Denver, Colorado was found with the body of her sister, Robin Korkki, inside their luxury vacation villa at the Maia Resort on Seychelles, an island in the Indian Ocean off the East African coast. Ann Korkki was 37; her sister Robin was 42.
According to the local Seychelles newspaper, there was no sign of violence on the bodies of the women who were on a one week vacation at the resort. The mother and brother of the sisters are currently in Seychelles “pressing U.S. and local officials for details” and making arrangements to bring the sisters back to the U.S. according to a news report in the Minneapolis Star Tribune, which covered the story because the sisters had attended high school in the area.
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Can Russia Learn From Brazil’s Fate? — Paul Craig Roberts and Michael Hudson

by Paul Craig Roberts, Paul Craig Roberts:
William Engdahl recently explained how Washington used the corrupt Brazilian elite, which answers to Washington, to remove the duly elected President of Brazil, Dilma Rousseff, for representing the Brazilian people rather than the interests of Washington. Unable to see through the propaganda of unproven charges, Brazilians acquiesced in the removal of their protector, thereby providing the world another example of the impotence of democracy. http://www.informationclearinghouse.info/article45561.htm
Everyone should read Engdahl’s article. He reports that part of the attack on Rousseff stemmed from Brazil’s economic problems deliberately created by US credit rating agencies as part of Washington’s attack to down grade Brazilian debt, which set off an attack on the Brazilian currency.
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John Bolton: Hostile Foreign Governments Will Use Obama’s Internet Surrender to Their Advantage

by John Hayward, Breitbart:
On Thursday’s edition of Breitbart News Daily on SiriusXM, former U.N. Ambassador John Bolton criticized Republicans for failing to effectively oppose an Obama policy that has devastating long-term consequences: the surrender of American control over Internet registration.
Breitbart Editor-in-Chief and SiriusXM host Alex Marlow asked Bolton about the impending surrender of Internet control to a multinational body, which Bolton saluted Senator Ted Cruz and some of his colleagues for making an “heroic effort” to block by inserting legislation into the continuing resolution for federal government funding.
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