Macroeconomic analyst Rob Kirby says there is a lot you are not seeing with all the bad news coming from Deutsche Bank (DB). You’ve seen DB stock hit all-time lows, the Fed downgrading them and flunking the bank on a recent stress test. Rob Kirby says it’s much worse than you think and explains, “Basically, it is the German regulator telling DB you are going to get out of this pool, then the Americans realizing how hostile the Germans have become to the criminal activity of the U.S. monetary complex. They basically said you are getting out of our pool? Well, we’re going to waterboard you first, and we’re going to bring public shame upon you.”
Is Kirby worried about DB going under? Kirby says, “I think Deutsche Bank could go under. It might very well deserve to go under, but will they be permitted to go under? In my view, there is no doubt what-so-ever that Morgan Stanley was insolvent in the 2008 and 2009 time frame. Their stock was at $5, and it looked like it was going to $0. They pulled out the stops and papered over the shortcomings at Morgan Stanley.” Kirby thinks European central bankers will do the same for DB.
Kirby goes on to say, “What we are really seeing here . . . is a trade war that has been going on for quite some time. This is a frictional description I am giving characterizing the regulatory relationship between American regulatory interests and German regulatory interests.”