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We’re on the Cusp of Repeating the 2008 Financial Crisis

This is a syndicated repost courtesy of Money Morning - We Make Investing Profitable. To view original, click here. Reposted with permission.

Market panic over Deutsche Bank AG(NYSE: DB) reached a fever pitch this week as the stock slumped 10% from $13.17 on Monday morning to $12.13 today (Wednesday). It’s currently sitting at its lowest level in more than 20 years. In fact, today’s DB stock price is 51% less than its lowest price during the 2008 financial crisis (which was $24.58).

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Of course, investors are worried the bank may not be able to afford the massive $14 billion fine the U.S. government imposed on it Sept. 16 for trading in toxic mortgages a decade ago.

But earlier today, Christine Lagarde, the managing director of the International Monetary Fund (IMF), assured global media that she doesn’t believe DB will need a bailout.

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Lagarde’s statement echoed Deutsche Bank CEO John Cryan, who told German newspaper Bild yesterday that he sees no need for state support of his institution.

However, Money Morning Capital Wave Strategist Shah Gilani, considered one of the world’s foremost experts on the credit crisis, told Stuart Varney this morning on FOX Business‘ “Varney & Co.” that DB “absolutely, unequivocally” will need a bailout.

If the bank is not bailed out, Gilani warned, it “would make the Lehman Brothers moment in 2008 look like a day at the beach.”

Watch the video below as Gilani and his fellow “Varney & Co.” panelists compare similarities between what’s going down at Deutsche Bank right now and the 2008 financial crisis:

 

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The post We’re on the Cusp of Repeating the 2008 Financial Crisis appeared first on Money Morning – We Make Investing Profitable.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. I may receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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