It's Pancaking All the Way Down, Folks!• https://www.paulcraigroberts.org, By David Haggith
As I suggested would happen earlier this week, the crazy buyout engineered in Switzerland when one of the oldest banks on Earth collapsed spread to equally ancient, gargantuan and zombified Deutsche Bank, and that's just what's happening on the surface as the whole global financial structure shook hard again today.
DB's shares, going down 11% just this morning, have slid by a fifth this month. And, while Credit Suisse, like Deutsche Bank, was as riddled as that nation's famous cheese with holes it had created for itself, Switzerland lays the blame for its fall on the US banking crisis.
The European column collapses
Deutsche Bank shares fell on Friday following a spike in credit default swaps Thursday night, as concerns about the stability of European banks persisted….
The emergency rescue of Credit Suisse by UBS, in the wake of the collapse of U.S.-based Silicon Valley Bank, has triggered contagion concern among investors, which was deepened by further monetary policy tightening from the U.S. Federal Reserve on Wednesday.
As some ask if it is fair for Switzerland to blame the fall of Credit Suisse on the US, given CS's longstanding problems since that hulk of corrupt, stinking Limburger was wrongly bailed out in the last financial crisis, I ask, "Why wouldn't BOTH the US collapse and the bank's internal rot be the cause?" The US crisis was simply the straw that broke the camel's back. That's all.