|Friday, Sept 30, 16|
SPX Down, Dollar Up, Crude Down
Global stocks are under-pressure driven by the speculation of Deutsche Bank Viability. For three years the market has been well aware of the $72.8 Trillion derivatives book deemed the riskiest in the world. Watching the equity drop from $50 in 2014 to $11 in 2016. There has been a-lot happening on the surface as the mainstream media promises Deutsche Bank is in a vacuum. Well, that was not the case yesterday when DB’s bank run was announced as hedge funds withdraw excess liquidity in droves. The headlines crashed the stock -900bps and sent shock waves to all global markets. The difference between Lehman and Deutsche is Lehman did not have retail depositors and wasn’t subjected to a bank run. DB does and we’re seeing smart money go public about it. John Cryan CEO of DB is replicating a “Lehman moment” via Richard Fuld assuring the market everything is calm.