While not quite on the level of last week's Berenberg downgrade (to Sell) which warned that DB's problems may now be "insurmountable", shortly after the close Moody's surprised the market with a downgrade that may have substantial repercussions on the funding costs (and perhaps viability) of the largest German, and European, lender.
Yesterday, when reporting on the latest development in China's ongoing under-the-table stealth nationalization-cum-bailout of insolvent enterprises courtesy of a proposed plan to convert bad debt into equity, we noted that while China has already managed to convert over $220 billion of Non-performing loans into equity, concerns - both ours and others' - remained.
When it comes to European stocks, Deutsche Bank has made up its mind: sell in May and don't come back at all this year.
Submitted by Charles Hugh-Smith via OfTwoMinds blog,
The only "growth" we're experiencing are the financial cancers of systemic risk and financialization's soaring wealth/income inequality.
The Keynesian gods have failed, and as a result we're in the eye of a global financial hurricane.
The Keynesian god of growth has failed.
The Keynesian god of borrowing from the future to fund today's consumption has failed.
A few months ago, we reported the incredible story of how hackers stole $100 million from Bangladesh Central Bank by way of the New York Federal Reserve. Now, thanks to a little noticed lawsuit, details are emerging that hackers had initially stolen another $12 million from a bank in Ecuador, Banco del Austro, although the bank was able to get back about $2.8 million of the stolen money.