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What happens when the first bank fails?

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JDot
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Re: What happens when the first bank fails?

#292631

Postby JDot » March 20th, 2020, 11:04 am

seekingbalance wrote:Surely that is going to happen at some point?

Any signs yet? Especially the new startup alternative banks?


If the current run on toilet paper is anything to go by then it is indeed feasible that a run on the countries banknotes could be next.

As for signs of potential bank failures, you should look for queues outside branches in the news or empty cash ATM's.

check out this link below for further explanation.

https://theconversation.com/a-toilet-pa ... ame-133065

GoSeigen
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Re: What happens when the first bank fails?

#383566

Postby GoSeigen » February 4th, 2021, 9:47 am

seekingbalance wrote:Surely that is going to happen at some point?

Any signs yet? Especially the new startup alternative banks?


Update: No bank failed failed. It was a buying opportunity. The passage of time is a steadfast and patient teacher if one is willing to learn...

:)


Today, first annual profit for Deutsche Bank since 2014 is announced -- in the year of COVID -- and the share price falls! Funny market. Added to my stupidly large holding.

https://www.ft.com/content/098222ba-770 ... 370be359cf

Deutsche Bank has made a net profit for the first time in six years on the back of a global trading boom that has boosted the lender’s fixed-income trading revenue.

After racking up €5.7bn of net losses in 2019, Germany’s largest lender on Thursday reported a net profit of €113m for 2020, the first since 2014 and higher than expected by analysts. The bank’s performance was driven by a 28 per cent year-on-year surge in bond and rates trading revenue, which rose to the highest level since 2016.


GS

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Re: What happens when the first bank fails?

#383721

Postby 1nvest » February 4th, 2021, 7:25 pm

GoSeigen wrote:
seekingbalance wrote:Surely that is going to happen at some point?

Any signs yet? Especially the new startup alternative banks?


Update: No bank failed failed. It was a buying opportunity. The passage of time is a steadfast and patient teacher if one is willing to learn...

:)


Today, first annual profit for Deutsche Bank since 2014 is announced -- in the year of COVID -- and the share price falls! Funny market. Added to my stupidly large holding.

https://www.ft.com/content/098222ba-770 ... 370be359cf

Deutsche Bank has made a net profit for the first time in six years on the back of a global trading boom that has boosted the lender’s fixed-income trading revenue.

After racking up €5.7bn of net losses in 2019, Germany’s largest lender on Thursday reported a net profit of €113m for 2020, the first since 2014 and higher than expected by analysts. The bank’s performance was driven by a 28 per cent year-on-year surge in bond and rates trading revenue, which rose to the highest level since 2016.


GS

Win/win situation. Post 2009 financial crisis and massive big bold German bank (over extended) bets - were swapped over to the ECB (a.k.a. rest of EU). The others in effect bailed them out, including Greece ... who didn't receive any assistance (other than a small drop in ocean token gesture). The EU clearly serves Germany well. Of course had those bets paid off, Germany would have kept the benefit as their own.

Today I see that the BoE is priming banks to prepare for negative interest rates within 6 months. Hmm! Same as QE really and no need for negative rates. The US is more inclined to print and hand out $1500 to everyone earning less than $50,000.


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