On Tuesday junk bonds continued to crash, the price of oil shortly dipped below 28 dollars a barrel, Deutsche Canap wasgoed coerced to deny that it is on the brink of collapse, but the largest news wasgoed what happened te Japan. The Nikkei wasgoed down a staggering 918 points, but that stock crash made very few headlines te the película del Oeste world. If the Dow had crashed 918 points today, that would have bot the largest single day point crash ter all of U.S. history. So what just happened te Japan is a indeed big overeenkomst. The Nikkei is now down 23.1 procent from the peak of the market, and that places it solidly te bear market territory. Overall, a total of 16.Five trillion dollars of entero stock market wealth has bot wiped out since the middle of . Spil I stated yesterday, this is what a completo financial depressie looks like.
Just spil wij spotted during the last financial keerpunt, the big banks are playing a starring role, and this is undoubtedly true ter Japan. Right now, Japanese banking stocks are absolutely imploding, and this is what drove much of the funk last night. The following numbers come from Wolf Richter…
- Mitsubishi UFJ Financial Group plunged 8.7%, down 47% from June .
- Mizuho Financial Group plunged 6.2%, down 38% since June .
- Sumitomo Mitsui plunged 6.2%, down 26% since May
- Nomura plunged a delicious 9.1%, down 42% since June
A loterijlot of analysts have bot very focused on the downturn te China te latest months, but I think that it is much more significant to see Japan right now.
I have become fully wooed that the Japanese financial system is going to play a central role ter the initial stages of this fresh completo financial meltdown, and so I encourage everyone to keep a close eye on the Nikkei every single night.
Meantime, the stock price of German banking giant Deutsche Canap crashed to a record low on Tuesday. If you will recall, Deutsche Canap reported a loss of 7.6 billion dollars te , and I wrote quiebro a bit about their ongoing problems yesterday.
Things have gotten so bad that now Deutsche Handelsbank has bot coerced to come out and publicly deny that they are ter trouble…
Deutsche Bankgebouw co-CEO John Cryan moved to quell fears about the canap’s stability Tuesday with a verrassing memo telling its balanceo sheet “remains absolutely rock-solid.”
The comments come spil investors grow increasingly jumpy about the health of European banks, which have taken a succesnummer on the fall ter energy prices and which face rising concerns overheen their specie levels.
Of course Lehman Brothers issued the same kleuter of denials just before they collapsed te 2008. Cryan’s comments did little to tranquil the markets, and even Jim Cramer spotted right through them…
“You know, Deutsche Bankgebouw puts out a note telling, ‘listen, don’t worry, all good.’ Reminds mij of JPMorgan telling if you have to say that you’re creditworthy then it’s already too late.”
Another thing that Lehman Brothers did just before they collapsed ter 2008 wasgoed to lay off workers. Wij have seen a number of major banks do this lately, including Deutsche Bank…
Cryan, 55, has bot seeking to boost haber buffers and profitability by cutting costs and eliminating thousands of jobs spil volatile markets undermine revenue and outstanding regulatory probes raise the specter of fresh renta measures to help voorkant continued judicial charges. The cost of protecting Deutsche Bank’s debt against default has more than doubled this year, while the shares have dropped about 42 procent.
The following chart comes from Zero Hedge. Nobody on the Internet does a better job with charts than Zero Hedge does. I would recommend visiting them right after you visit The Economic Collapse Blog each day (wink wink). This chart shows that Deutsche Canap stock has already fallen lower than it wasgoed during any point during the last financial crisis…
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Deutsche Handelsbank is the fattest and most significant canap ter the largest and most significant economy te the EU, and it has exposure to derivatives that is approximately 20 times Germany’s GDP.
If that doesn’t noodsignaal you, I don’t know what will.
The largest financial bubble ter the history of the world has entered a terminal phase, and the parallels to the last financial depressie have become so apparent that just about anyone can see them at this point. Just consider some of the ominous warnings that wij have seen recently…
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Billionaire Carl Icahn, for example, recently raised a crimson flag on a national broadcast when he announced, “The public is walking into a trapje again spil they did ter 2007.”
And the prophetic economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.”
Smithers backs up his prediction using a ratio which proves that the only time te history stocks were this risky wasgoed 1929 and 1999. And wij all know what happened next. Stocks fell by 89% and 50%, respectively.
Even the Royal Bankgebouw of Scotland says the markets are flashing stress alerts akin to the 2008 keerpunt. They told their clients to “Sell Everything” because “ter a crowded recibidor, the uitgang doors are petite.”
And let’s not leave behind that famous billionaire retail magnate Hugo Salinas Price has warned that the entero economy “is going into a depression“.
The puinhoop that wij have seen this week is simply a logical progression of the depressie that began during the 2nd half of last year. If you were to create a checklist of all the things that you would expect to see during the initial stages of a fresh financial keerpunt, all of the boxes would be checked.
Te the days ahead, keep your eyes on Germany and Japan.
Yes, the Italian banking system is downright collapsing right now, but I believe that what is happening ter Germany is going to be the key to the meltdown of Europe, and I am wooed that Deutsche Bankgebouw is going to be the starlet of the demonstrate.
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Meantime, don’t underestimate what is taking place te Japan.
The Japanese still have the third largest economy on the entire planet, and their financial system is essentially a Ponzi scheme built on top of a house of cards that has a rapidly aging population spil the foundation.
Spil Japan falls, that will be a signal that financial Armageddon is now upon us.
And after last night, it shows up that ogenblik is a loterijlot closer than a lotsbestemming of us may have thought.