Deutsche Bank AG (DB)

[fromtheuk]

A fantastic and up to date opinion on the Italy Dept Crisis, it also agreed with me, that the Turkish Lira issue is not really where we should be focusing. Be in no doubt Deutsche Bank is upto it’s eye balls in Italian Debt, but so are the French / Spanish banks.

[snippet] The market never waits for the (bad) news to come and is (while hoping for the best, it's always) preparing for the worst. Spreads on Italian bonds spread have already risen sharply in anticipation of (and preparation for) the new government budget.

[my take]
This is going to hit this October with the Crisis between the EU hitting fever pitch as they lurch into 2019. Yields will rise as the ECB refuses to throw more money at something that’s clearly failing. It’s at that point Italy no longer able to fund its debt finally does the right thing and crashes out of the EURO taking the French / Spanish and Deutsche Bank with it.

Yields spiked on pure fear and panic when the populists took over. Falling back after calming words from the government. They are now back to those spiked levels and still growing. Next year 300 Billion is needed to refinance. In the past that was at negative interest rates ( unbelievable ). Today it’s at 2%- 3% and rising fast. The problem is all that debt was managed through the ECB. That now comes to an end with QE ending. No one else is crazy enough to lend them money.

It’s Over

https://www.google.co.uk/amp/s/seekingalpha.com/amp/article/4200319-italy-giving-boot-boot-country

I encourage you all to read.