Economy

Deutsche Bank is in deep trouble, and we should care.

"However, we should keep in mind that this is potentially a very dangerous situation that could dwarf the Lehman debacle and send world markets into a tailspin. That said, however, we have just seen a turnaround on stupendous record volume in DB stock on Friday, which suggests that the crisis is set to ease at least over the short to medium-term, and if so world markets could rally. Mrs. Merkel and the German government have been caught in a dilemma over DB – after lecturing Greece and other southern European governments about the virtues of propriety for ages they can’t very well wade in and rescue Deutsche Bank, so it looks like the bailout will have to come from an international consortium of banks, via the simple expedient of printing up another few trillion, which gets more habitual the more times you do it, and there’s always the fallback position of a coordinated international bail-in, although for obvious reasons they are unlikely to resort to this until they have implemented the cashless society."

It's going to go. It may already be bankrupt.