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comment by mk
mk  ·  2972 days ago  ·  link  ·    ·  parent  ·  post: Deutsche Bank in free fall, Merkel signals no bailout

They just hit a new low of $11.19 today. A small recovery to $11.45 since, but we are getting closer to single digits.





kleinbl00  ·  2972 days ago  ·  link  ·  

Ten Euros.

Interesting times.

mk  ·  2972 days ago  ·  link  ·  

This is getting to the point where the are going to have to worry about a run. Personally, if I had a DB account, I would seriously consider moving my money.

snoodog  ·  2972 days ago  ·  link  ·  

Yeah... you would have to be an idiot to keep money there. Like all the idiots that kept their money in Cypress before their banks went boom.

kleinbl00  ·  2972 days ago  ·  link  ·  

In a fractional reserve banking system, the actual deposits of any investors are such a small percentage of the balance sheet that it wouldn't hurt the government badly to cover their losses. It's all the derivatives and bonds and exotic financial instruments that are likely to detonate, and those are deliberately tilted to prevent the government from absorbing the loss.

Depositors are gonna be fine. Creditors?

Yeah haircut.

mk  ·  2972 days ago  ·  link  ·  

I agree that's almost certain to be the case. But I'd hate to risk being part of a new experiment.