Probably not immediately, but eventually, who knows:
Germany’s largest lender is set to shut over a quarter of its branches across the country as the company goes through a major restructuring process.
The closures are set to take place over the next few months, with 188 of Deutsche Bank’s 723 branches nationwide due to close their doors…
After recording colossal losses of around €7 billion in 2015, the Frankfurt lender is desperately seeking ways to cut costs…
The bank said it hopes to redirect funds to digital banking, in which it hopes to invest €750 million by 2020…
Notice, how they were wasting resources, and how as the crunch approaches, they can simply cut that expenditures and keep running. During r, businesses do not optimize their operations to maximize their efficiency. Rather, they maximize expenditures in the hope of maximizing revenue, with limited consideration of saving to survive a shortage.
Notice also, Deutsche Bank is an elite institution with excellent resource availability. If any organization should have the resources, intelligence, analysis, and connections to be investing successfully, it should be them. Yet in this environment, they are hemorrhaging money. Even better, they are hemorrhaging the money their account holders, consumers, and investors think they are keeping safe, and they could one day run out of capital to lend. There is no telling what would happen then, but Apocalypse would probably be a good place to start.
Eventually, people will grasp that the fractional banking system means that their money may not be there when they go to get it, and those who invest will begin to grow more economically cynical as well.
The bank runs, are coming. All we need is a little amygdala and a trigger. Sadly I will bet by the time they hit, the high-net-worth accounts will all be empty, and all that will be left will be the small businesses and private individuals of moderate means to take the hit.
[…] Is Deutsche Bank Going to Collapse? […]
The small businesses are going to take it in the pants under the Willie Sutton principle: “That’s where the money is.”
Although fractional reserve banking is often maligned, the fact is that without it banks would not be able to make loans, and depositors would be required to pay a fee to cover the costs of storing their cash. The scheme goes back to the Middle Ages or before. You cannot have a modern banking system without it, despite the risks, and the risk of a complete system failure is next to zero. The entire government structure–federal, state and local–would have to disappear, and there are enough troops, National Guard and police to prevent that. Of course, you would be living in a dictatorship.
https://en.wikipedia.org/wiki/Fractional-reserve_banking
Correct ! The criminals who created and promoted this unregulated bank scam, a.k.a. a ponzi scheme, will be the first rats off the boat.
What I want to know is how you can lose money if you create it from nothing and loan it out to people. Bankers far from being geniuses are idiots if they can’t make money from nothing and make a profit.
It is extremely likely that instead of banking on standard loans backed by property or other assets they gamble away their capital on risky ventures to make higher profits. Then they want us to bail them out.
We should back the depositors and bankrupt any bank that goes under. The officers of the bank should be investigated and if they unlawfully risked the banks capital they should have their assets confiscated.
A cartoon for every conservative in regards for fractional reserve banking:
https://www.youtube.com/watch?v=jqvKjsIxT_8