Deutsche Bank concerns just went to ’11’ as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank.
It will be a good measure of whether we are into K psychologically, or still in r. At this point any functional K-amygdala would see threat and get their money out, while r-amygdalae are probably not going to see a thing, and just assume they will have resources no matter what they do.
Either way, scary times approach. We have had economic downturns around previous elections. Given how wrong they have been up till now, I could see the eggheads thinking a big scare will drive people to the level-headed Clinton, and away from the risky Donald. Clearly a lot of big guns who should know think the end is near for Deutsche, no matter what the stock is doing.
May you live in interesting times.
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