German Banks close to colaspe!

[Mega]

http://www.spiegel.de/international/...6635-2,00.html
Can someone up the food chain read this and let me know if:-

Its bad
Its VERY Bad
Its VERY, VERY B A D !!!!!
Cheers
Mike

[metalman]

Re: German Banks close to colaspe!

http://www.spiegel.de/international/...6635-2,00.html
Can someone up the food chain read this and let me know if:-

Its bad
Its VERY Bad
Its VERY, VERY B A D !!!!!
Cheers
Mike

well spiegel is the most reputable mag in germany so this ain't made up blogger crap. wow! you'd exect the dax to tank on the rumor, tho. didn't.

[Mega]

Re: German Banks close to colaspe!

Metal
What amazes me is the Dow has not crashed!
Ok, its not 14,000 but Bloody Hell HOW bad does the news have to get?
Mike

[GeraldRiggs]

Re: German Banks close to colaspe!

I agree. I keep watching and watching as the bad news rolls out day after day and wonder why the DOW has not tanked!!! There has got to be something going on behind the scenes that the average bloke is not privy too. Any BTW, just a hint of something "not so bad" will send the DOW up 50-100 points! What's ging on?????

[Mega]

Re: German Banks close to colaspe!

As EJ sez, its a process not an event......but there must come a tipping point?
Mike

[metalman]

Re: German Banks close to colaspe!

As EJ sez, its a process not an event......but there must come a tipping point?
Mike

ej's take is that the funds with 50% of the capital in the markets know they can't keep it up all 2008 facing the headwinds as they did end of 2007 for bonus time... seems to me that was mostly behind the timing call.

if we all know how bad things are, so does the money... they are not surprised by the bad news. what'll crash it? bad news they don't expect. all out crashes are rare... he said they happen when enough of the money thinks all at once they're going to get caught out with no chance to get it back in the career window. for now it grinds down. he promised a 1,000 pnt down day in q1, tho. got a month and a week to go!

[JoeSixpack]

Re: German Banks close to colaspe!

Ok germany here which doesnt make me having a crystal ball on this but its my daily news... IKB was one of the FIRST ones going down, even before all the mess with MER, GS and CIT and Northern etc. started.
We have a saying here that with the german state banks, you dont ask "if" but "how much". If you want to get a feel at how stupid they are, look for news on WestLB for the last 2 years or such, you get the whole dish: rogue trading, fraud, stupidity

Market impact ? First, they are STATE banks = taxpayer bailout. All in all, its just a drop of water in the tsunami going on and since its been a long story which is coming to an end, market impact 0 if they can sort it out on taxpayers expense. So, while i dont think it will matter much in the bailout mania of state banks, there is one big name left to fubar, LBBW.

They used new accounting standards to delay Q4 writeoffs, basically like "temporarily impaired value". My guess is that by summer, they have to admit their 5 bn capital is gone completely, leaving less than 7bn in reserves and the like.

We say lets merge them all (hey, they are doing that already) so we can close them all at once, lol.


What should matter more, is a failure of a large hedge fund derviatives counterparty, but thats the US soil again.

Cheers

[touchring]

Re: German Banks close to colaspe!

Like a new stunt from osama bin papa? :eek:

As EJ sez, its a process not an event......but there must come a tipping point?
Mike

[rros]

Re: German Banks close to colaspe!

he promised a 1,000 pnt down day in q1, tho. got a month and a week to go!

Soon come. Break the neck and potential 2000 points down. My view though... slow bleed.