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Deutsche Bank (The Teutonic Titanic) And EU Bank Stocks Post Financial Crisis

This is a syndicated repost published with the permission of Confounded Interest. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Despite the trillions of dollars, pounds, yen, euros pumped into the global financial system since 2008, the banking industry has, for the most part, never fully recovered.

An example of how bad the European and the global economy remains is the asset balance sheets of the central banks for the  US, UK, ECB and Japan.

cbbalahjset

Things have never been the same since the financial crisis.

Take Deutsche Bank, the Teutonic Titanic. They hit $140 per share in May 2o07 but has fallen to $13.82 US as of today. They never fully recovered from the financial crisis collapse of 2007/2008.

teutonictitanic

But look at UK banks too, HSBC, Royal Bank of Scotland,  Barclay’s and Lloyds. None of them have fully recovered from the 2007/2008 financial crisis and all are lower in terms of stock price (with Royal Bank of Scotland hanging on by a thread).

If the UK and German banks are seriously weighing in on sovereign default, they aren’t showing it. Credit default spreads (CDS) for UK have risen to

ukgermcds

So the global alarm to cancel the Brexit (sounded by too many to count, including George Soros, US Secretary of State John Kerry, Bill Rogers, etc) just isn’t appearing in the data, unless you consider a small upturn in UK CDS 5Y to 2013 levels (but far below levels seen during the financial crisis).

The UK pound Sterling? Back to near-financial crisis lows. and had been angling that direction since 2014 (GBP/USD) and 2015 (GDP/EUR).

currbrexiot

I keep hearing from anti-Brexit cheerleaders that it is about immigration. While there may be some who voted for Brexit to get their borders under UK control again, it is mostly about the big banks and who is going to bail them out. Again.

For those of you still hyperventilating about the UK daring to leave the European Union, just look at this soothing picture of a puppy that had been abandoned.

babyshep0_n

I know you were expecting this!

titanic-sinking-underwater

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