The earnings season has started, and several major banks in the Eurozone have already reported on how they performed in the fourth quarter of 2015, and the entire financial year. Most results were quite boring, but unfortunately Deutsche Bank once again had some bad news.
Just one week before it wanted to release its financial results, it already issued a profit warning to the markets, and the company’s market capitalization has lost in excess of 5B EUR since the profit warning, on top of seeing an additional 18B EUR evaporate since last summer. Deutsche Bank is now trading at less than 50% of the share price it was trading at in July last year.
Either 'Banks are Cheap' or 'The Market's Gonna CRASH' ~ link ~
Simply put, either large cap Financials are cheap, or the entire U.S. equity market is still overpriced. Their precipitous decline year to date means markets fear they are both the transmission mechanism for a global slowdown/recession to come and a primary victim of that event. Or, from the glass-half-full side, they overly discount a bearish scenario that will not materialize. Short term, they should bounce since their recent volatility looks to be in line with prior spikes and near term bottoms. Longer term, global and domestic economies need to show some resilience. And the sooner the better.
Because, as Gavekal Capital exposes, banks are approaching relative performance lows...
The KBW Bank Index, which consists of 24 banks, is approaching 2008 and 2011 lows relative to the S&P 500. In the chart below, we plot the KBW Index against the S&P 500 going back to September 1992 which is when the KBW Bank Index began. We have indexed the chart at 100 starting in September 1992. Banks have underperformed the S&P 500 by nearly 37% since 1992 and only twice, in 2008 and 2011, have banks underperformed more. In 2008, banks had underperformed by nearly 48% and in 2011 banks had underperformed by about 43%.
Dot-Com Bubble 2.0 is Bursting: Tech Stocks Down half a trillion dollars since mid-2015 ~ link ~
Do you remember how much stocks went down when the first dot-com bubble burst? Well, it is happening again, and tech stocks are already down more than half a trillion dollars since the middle of 2015. On Friday, the tech-heavy Nasdaq dropped to its lowest level in more than 15 months, and it has now fallen more than 16 percent from the peak of the market. But of course some of the biggest names have fallen much more than that. Netflix is down 37 percent, Yahoo is down 39 percent, LinkedIn is down 60 percent, and Twitter is down more than 70 percent. If you go back through my previous articles, you will find that I specifically warned about Twitter again and again. Irrational financial bubbles like this always burst eventually, and many investors that got in at the very top are now losing extraordinary amounts of money.
22 Signs that the 2016 Global Economic Turmoil IS JUST BEGINNING ~ link ~
As bad as the month of January was for the global economy, the truth is that the rest of 2016 promises to be much worse. Layoffs are increasing at a pace that we haven’t seen since the last recession, major retailers are shutting down hundreds of locations, corporate profit margins are plunging, global trade is slowing down dramatically, and several major European banks are in the process of completely imploding. I am about to share some numbers with you that are truly eye-popping. Each one by itself would be reason for concern, but when you put all of the pieces together it creates a picture that is hard to deny. The global economy is in crisis, and this is going to have very serious implications for the financial markets moving forward. U.S. stocks just had their worst January in seven years, and if I am right much worse is still yet to come this year. The following are 22 signs that the global economic turmoil that we have seen so far in 2016 is just the beginning…
Iceland sentences the 29th banker to prison as US and UK bankers continue to collect massive bonuses ~ link ~ Out of the entire world, it is only the descendants of the Vikings in Iceland that have the balls to do what is right!!! Stirling
The fascists Khazar Bankers are on the move….. first all the chemtrail dumping is getting heavier and heavier, soft kill is being pushed now like never before, with the extreme numbers of cell towers and smart meters being distributed in residential areas all over the world in the G-20 adopted global spy grid agenda.
First comes the depopulation as outline in the Georgia Guidestones, paid for by the luciferian society, that has also been connected to the KHAZAR bankers, and now the confiscation of wealth from every country through bail outs and more 2008, criminal mafia type corruption with no prosecution or jail time for the criminals.
YOU BETTER NOT GIVE UP YOUR GUNS, SINCE THEY ARE GETTING SERIOUS AS HELL ABOUT TAKING US DOWN TO THIRD WORLD CONDITIONS AND DEPOPULATING US IN THE PROCESS. The new trade agreement, the TPP, is the final straw for ending our soveriegnty and our Constitutional protections and installing a global fascist governing system with no resistance.
Inequality is against Democracy: 10 Facts about the 1% ~ link ~
We are living through the greatest “wealth grab” in history. But inequality is not produced by immutable forces. It’s the result of a legislative agenda promoted by the rich and executed by their political allies. The struggle to change this agenda and end inequality is inseparable from the other critical struggles of our time.
The Corrupt Federal Reserve Is NOT Federal ~ link ~ Do take the time to read all of this one at the link!!! Stirling
“Give me control of a nation’s money and I care not who makes its laws” – Mayer Amschel Bauer Rothschild
“Mayer Rothschild’s strategy was to keep control of their banks in family hands, allowing them to maintain full secrecy about the size of their fortunes. In about 1906, the Jewish Encyclopedia noted: ‘The practice initiated by the Rothschilds of having several brothers of a firm establish branches in the different financial centres of the world was followed by other Jewish financiers, like the Bischoffsheims, Pereires, Seligmans, Lazards and others, and these financiers obtained credit not alone with their Jewish confrères, but with the banking fraternity in general. By this means Jewish financiers obtained an increasing share of international finance during the middle and last quarter of the 19th century. The head of the whole group was the Rothschild family…’ “
“CPA Thomas D. Schauf corroborates McCallister’s claims, adding that ten banks control all twelve Federal Reserve Bank branches. He names,
• N.M. Rothschild of London
• Rothschild Bank of Berlin
• Warburg Bank of Hamburg
• Warburg Bank of Amsterdam
• Lehman Brothers of New York
• Lazard Brothers of Paris
• Kuhn Loeb Bank of New York
• Israel Moses Seif Bank of Italy
• Goldman Sachs of New York
• JP Morgan Chase Bank of New York
By then, the Rothschilds would once again morph themselves into a complete new identity not associated with Judaism in any form, not even World Zionism.
It is important to realize that the Rothschild KM took Germany down to nothing after WWI, created a vacuum for Fascism, and then rebuilt it, creating Naziism and installing Hitler as a counter-force to their Russian Bolshevism.
The Globe and Mail, however, was right about one thing: the TC ratio did not capture the full risk embedded in Canadian bank balance sheets: it was merely a shorthand as to how much capital said banks have in case of a rainy day.
Sadly for Canada, it's not only raining, it's pouring for the country's energy industry, a downpour which is about to migrate into its banking sector. Which is why it is indeed time to take a somewhat deeper dive into the Canadian banks' balance sheets, where we find something very troubling, and something which prompts us to wonder if the time of freaking out about European banks is about to be replaced with comparable panic about Canadian banks.
Three Reasons to be Worried about the Economy ~ link ~ Good One! Stirling
On January 12, America’s central planner-in-chief gave his State of the Union address. The president promised nothing less than to feed the hungry, create jobs, shape the earth’s climate, and make everyone a college graduate. There’s nothing new here, though. We’ve heard variations of this silly song and dance every year under both Democrats and Republicans. The president lambasted naysayers as fear-mongers that were too partisan to admit we have a booming economy. The fact that the Dow Jones cratered roughly 9 percent in the same thirty-day period President Obama gave his address did nothing to quell Obama's optimism about America’s future. In fact, he labeled the US economy “the strongest and most durable in the world.”
Despite our leader’s unwavering confidence in America’s fortunes, a quick peak under the hood reveals a pretty grim state of American commerce.