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Deutsche Bank Dropped 88% Since June ’07 … Bank Of Greece Dropped 99.99%

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

As Bruce Willis said in the film Die Hard, “Welcome to the party, pal!”

The US government and financial institutions created a staggering 1-4 unit mortgage credit bubble starting in 1995 with Clinton’s National Homeownership Strategy, a 100-point action plan that put as its overarching goal achieving an “all-time high level of homeownership in America within the next six years.” nhsdream2

Well, the US homeownership rate peaked at 69.2% in 2004, but has fallen to a level lower than where Clinton started.

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1-4 unit mortgage debt outstanding grew a staggering rate from 1995

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We all know how this ended. A massive home price bubble that collapsed, spreading pain through households and the financial system.

Of course, Europe experienced a burst in mortgage lending as well. That also ended badly. Throw in the Greek credit crisis, and … kaboom.

Deutsche Bank’s stock price has declined 88% since June 2007. But the other big German bank, Commerzbank, fell 97% over the same period.

eurobanksugh

Italy’s  Banca Monte Dei Pascha has declined 99.76% since June 2007 to finish second in terms of losers. The biggest loser? The Bank of Greece at -99.99%.

The reaction from the Bank of England and the European Central Bank? Follow the Fed down the path of zero interest rate policy. Where they all remain today. And European banking stocks remain in the toilet.

fedecbbofe

Here is a gyro meat cone representing how taxpayers will be called on to bail out these gyro’d banks.

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Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. 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. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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