Issuing Office: New York City
Source: The National Weather Service
SEVERE THUNDERSTORM WARNING FROM 3:34PM EDT THU UNTIL 4:30PM EDT THU
THE NATIONAL WEATHER SERVICE IN UPTON NY HAS ISSUED A
* SEVERE THUNDERSTORM WARNING FOR... UNION COUNTY IN NORTHEASTERN NEW JERSEY... EASTERN PASSAIC COUNTY IN NORTHEASTERN NEW JERSEY... ESSEX COUNTY IN NORTHEASTERN NEW JERSEY... SOUTHEASTERN BERGEN COUNTY IN NORTHEASTERN NEW JERSEY... HUDSON COUNTY IN NORTHEASTERN NEW JERSEY... KINGS COUNTY IN SOUTHEASTERN NEW YORK... RICHMOND COUNTY IN SOUTHEASTERN NEW YORK... NEW YORK COUNTY IN SOUTHEASTERN NEW YORK... BRONX COUNTY IN SOUTHEASTERN NEW YORK...
* UNTIL 430 PM EDT
* AT 332 PM EDT... A SEVERE THUNDERSTORM WAS LOCATED NEAR MORRISTOWN... MOVING EAST AT 35 MPH.
HAZARD... 60 MPH WIND GUSTS.
SOURCE... RADAR INDICATED.
IMPACT... EXPECT DAMAGE TO ROOFS... SIDING... AND TREES.
* LOCATIONS IMPACTED INCLUDE... NEW YORK... NEWARK... JERSEY CITY... PATERSON... ELIZABETH... PASSAIC... BAYONNE... WAYNE... HOBOKEN... PLAINFIELD... BLOOMFIELD... HACKENSACK... LINDEN... BERGENFIELD... PARAMUS... SUMMIT... LYNDHURST... MILLBURN... RUTHERFORD AND SECAUCUS. THIS IS A DANGEROUS SITUATION. THIS STORM IS PRODUCING WIDESPREAD WIND DAMAGE ACROSS NORTHEAST NJ. SEEK SHELTER NOW INSIDE A STURDY STRUCTURE AND STAY AWAY FROM WINDOWS!
It’s been almost 10 years in the making, but the fate of one of Europe’s most important financial institutions appears to be sealed. Deutsche Bank is in major trouble, and with it, so are the rest of us.
After a hard-hitting sequence of scandals, poor decisions, and unfortunate events,Visual Capitalist's Jeff Desjardins notes that Frankfurt-based Deutsche Bank shares are now down -48% on the year to $12.60, which is a record-setting low.
Even more stunning is the long-term view of the German institution’s downward spiral.
With a modest $15.8 billion in market capitalization, shares of the 147-year-old company now trade for a paltry 8% of its peak price in May 2007.
THE BEGINNING OF THE END
If the deaths of Lehman Brothers and Bear Stearns were quick and painless, the coming demise of Deutsche Bank has been long, drawn out, and painful.
In recent times, Deutsche Bank’s investment banking division has been among the largest in the world, comparable in size to Goldman Sachs, JP Morgan, Bank of America, and Citigroup. However, unlike those other names, Deutsche Bank has been walking wounded since the Financial Crisis, and the German bank has never been able to fully recover.
It’s ironic, because in 2009, the company’s CEO Josef Ackermann boldly proclaimed that Deutsche Bank had plenty of capital, and that it was weathering the crisis better than its competitors.
It turned out, however, that the bank was actually hiding $12 billion in losses to avoid a government bailout. Meanwhile, much of the money the bank did make during this turbulent time in the markets stemmed from the manipulation of Libor rates. Those “wins” were short-lived, since the eventual fine to end the Libor probe would be a record-setting $2.5 billion.
The bank finally had to admit that it actually needed more capital.
In 2013, it raised €3 billion with a rights issue, claiming that no additional funds would be needed. Then in 2014 the bank head-scratchingly proceeded to raise €1.5 billion, and after that, another €8 billion.
A SERIES OF UNFORTUNATE EVENTS
In recent years, Deutsche Bank has desperately been trying to reinvent itself.
Having gone through multiple CEOs since the Financial Crisis, the latest attempt at reinvention involves a massive overhaul of operations and staff announced by co-CEO John Cryan in October 2015. The bank is now in the process of cutting 9,000 employees and ceasing operations in 10 countries. This is where our timeline of Deutsche Bank’s most recent woes begins – and the last six months, in particular, have been fast and furious.
Deutsche Bank started the year by announcing a record-setting loss in 2015 of €6.8 billion.
Cryan went on an immediate PR binge, proclaiming that the bank was “rock solid”. German Finance Minister Wolfgang Schäuble even went out of his way to say he had “no concerns” about Deutsche Bank.
Translation: things are in full-on crisis mode.
In the following weeks, here’s what happened:
- May 16, 2016: Berenberg Bank warns that DB’s woes may be “insurmountable”, noting that DB is more than 40x levered.
- June 2, 2016: Two ex-DB employees are charged in ongoing U.S. Libor probe for rigging interest rates. Meanwhile, the UK’s Financial Conduct Authority says there are at least 29 DB employees involved in the scandal.
- June 23, 2016: Brexit decision hits DB hard. The bank is the largest European bank in London and receives 19% of its revenues from the UK.
- June 29, 2016: IMF issues statement that “DB appears to be the most important net contributor to systematic risks”.
- June 30, 2016: Federal Reserve announces that DB fails Fed stress test in US, due to “poor risk management and financial planning”.
Doesn’t sound “rock solid”, does it?
Now the real question: what happens to Deutsche Bank’s derivative book, which has a notional value of €52 trillion, if the bank is insolvent?
Source: Visual Capitalist
The global powder keg is rapidly approaching a detonation point. The signs are everywhere.
Confidence in the economy is deteriorating. Anger is boiling over. Panic is taking hold.
Wealth Research Group says we may be on the cusp of another Great Depression and Americans are simply ill-prepared to deal with it.
The U.S. has never experienced a full blown, prolonged, nigtmarish depression, and the people of this country are just not prepared…
Things could get desperate and the masses will not like it… mass panic psychology is a wildcard at that point…
The second wildcard is the global economy itself… anything, anywhere can trigger panic… you might have just opened a new business, taken on a mortgage, or just retired… and your reality can change for the worse in an instant… and you have no control over it.
Watch this short video for facts you’ll never hear from the mainstream media:
(Watch at Youtube)
The government won’t be bailing anybody out this time around… In fact, they won’t even be able to save themselves.
For more videos like this one visit Wealth Research Group
Prepare for what’s coming and download the Uncharted Waters Special Report for free!
How do you know when the world’s economic, financial and monetary systems are in trouble?
Answer: When re-insurance companies, whose sole purpose is to insure other insurance companies, start to panic into gold and begin hoarding cash it’s probably a reliable signal that things aren’t going as well as our central bankers’ best laid plans imply.
That’s exactly what’s happening right now:
A real paradigm shift is taking place in the markets… Even one of the world’s second largest re-insurers is now buying physical gold… They’re even adding physical cash… This is the insurance industry’s insurance company… They are the risk experts and they now are buying physical gold bullion and storing physical cash… The importance of this move is possibly the most significant flow of capital that you will see in your lifetime…
Watch via Future Money Trends:
(Watch at Youtube)
This is just the beginning… an avalanche of buying will soon take the gold price higher than central banks could imagine… If just 5% of assets under management from the top 500 fund managers flowed into gold, the results would be stunning… that would be $3.9 trillion… the price level of gold would have to rise dramatically in order to meet this demand.
We’ve already seen what happens when market panic takes hold. As stocks crashed in earnest at the beginning of the year, gold and gold mining companies sky-rocketed in price. The same scenario played out following the post-Brexit meltdown.
When confidence is lost and markets crash investors will run for the safety of gold and silver. And as was recently noted by Doug Casey, the panic buying that will ensue once the floodgates are open could drive precious metals to levels that most people can’t even imagine.
Banks in Europe are already collapsing, with several banks having already failed in Italy, and Germany's largest bank seeing a 90% drop in its stock value. When banks in the US begin to fail - and they will - will YOU have cash on-hand to buy food and fuel? Or will you be one of the people left with credit /debit cards that simply don't work when the banks and ATM's are closed and offline?
A massive protest by "Black Lives Matter" is continuing in Atlanta, where literally thousands have taken to the streets, shutting down Interstate highways. This is taking place after a Black Man was found lynched from a tree in Piedmont Park. It is also run in conjunction with the protests elsewhere over so-called "police brutality" against blacks which are taking place in many cities across America.
WSB-TV in Atlanta confirms the black man was found hung from a tree in Piedmont Park. Initially, the Atlanta Police tried to play-down the incident as a "suicide. But that was quickly dismissed as nonsense when the Mayor of the city called-in the FBI to investigate.
Major metropolitan police departments like the Atlanta Police don't call the FBI about "suicides" do they?
SuperStation95 covered this story earlier, Here.
Boston police are warning department members of threats by gang members to target cops and urging officers to "use caution when coming to and from district stations."
"There is increased hostility toward law enforcement with a number of known and active Boston gang members posting public threats and calls to target police officers for violence," the warning to city cops authored by the Boston Regional Intelligence Center reads. "At least one post suggested that individuals follow officers home from the stations. At this time, it is unknown if these threats are credible, but officers should use caution when coming to and from district stations."
Earlier today, Boston police announced they will patrol in groups of two in the wake of the sniper attack Dallas that left five officers dead last night.
“In light of the tragedy in Dallas and in the best interest of officer safety, all BPD patrols will be conducted by two-officer units,” the police department announced on Twitter.
The department also said it is lowering all flags to half-staff in memory of the officers killed and the seven wounded when gunmen opened fire on cops during a peaceful civil rights protest in central Dallas.
Boston Mayor Martin J. Walsh this morning released a statement on the attack.
“My thoughts are with the Dallas officers who were killed last night, and their families, and I’m praying for fast recovery for the injured,” Walsh said. “I unequivocally condemn violence against law enforcement officers. Whatever motivated this horrific attack, we should do all we can as a community and a nation to prevent it from inflaming existing tensions around police interactions. As Martin Luther King Jr. said, violence solves no problem but is ‘a descending spiral ending in destruction for all.’ We can and we must work together to end all the deadly violence afflicting our country.”