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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: elmatador who wrote (122397)10/2/2016 12:47:52 AM
From: Elroy Jetson  Respond to of 219341
 
People like yourself misunderstand what a bank is. Banks facilitate money transfers and credit and can make their owners a profit or a loss.

When a bank like Citibank loses more than the amount of their capital, which was only 3% in their case when they failed, what should happen is the shareholders and often the bondholders lose their ownership in the bank. The bank is then sold on to new owners who contribute the capital needed to operate the bank.

So far as customers are concerned the bank continues to operate as it alwas did, but it now has new owners.

Unlike other countries in 2008, George W Bush didn't want to see bank shareholders lose money for some reason. The government bailout of American bank shareholders was an obscenity and not at all neccessary and not the model followed by other nations.

Deutsche Bank will almost certainly get new owners but no one else will notice.



To: elmatador who wrote (122397)10/2/2016 11:57:01 AM
From: stsimon  Read Replies (1) | Respond to of 219341
 
I think not. The European economy is more resilient than that. As for China, they are more likely to encounter problems as a result of their own banking system and endless political corruption.



To: elmatador who wrote (122397)10/2/2016 1:41:30 PM
From: TobagoJack  Respond to of 219341
 
I figure Germany shall bailout and/or bail-in Deutsche Bank. No-action, in case of collapse, equals bail-in.

If bail-in, the political price may be Germany-exit. Either way EU changed, and possibility range from all-in, to all-out.

EU changed, as a market, is a gradual process, and had been happening for sometime.

China should be okay, as China is hooked-in yet somewhat stand-along, w/ many levers, lots of buttons, plenty of needs, and zero net foreign debt.

Should be interesting process, all considered. Let us watch n brief, live n learn.