Deutsche Bank’s balance sheet is a ticking financial nuclear time bomb.
"It’s the financial system’s “Hurt Locker.” Since March 11, Deutsche Bank stock is down 25% despite the inexorable move higher by the S&P 500. DB is down 9% in four trading days this week. Despite the Fed’s attempts to monetize DB’s derivatives, DB’s stock is telling us that DB’s financial condition is melting down.
This is likely the reason that gold has been a stellar performer for the past three weeks despite the general expectation that the bullion banks were in a position to smash the precious metals once again. But every attempted downward manipulative hit has been met with aggressive buying. What makes the trading action in gold all the more remarkable is the fact that India’s gold importing activities have ground to halt since the country’s jewelers went on strike March 1st.
This is an unmistakable message from the market that something potentially devastating has occurred behind the western Central Banking “curtain.”
