{"id":11435,"date":"2015-08-24T08:12:13","date_gmt":"2015-08-24T13:12:13","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11435"},"modified":"2015-08-24T08:12:13","modified_gmt":"2015-08-24T13:12:13","slug":"deutsche-bank-sums-it-up-the-fragility-of-this-artificially-manipulated-financial-system-was-finally-exposed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11435","title":{"rendered":"Deutsche Bank Sums It Up &#8220;The Fragility Of This Artificially Manipulated Financial System Was Finally Exposed&#8221;"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2015-08-24\/deutsche-bank-sums-it-fragility-artificially-manipulated-financial-system-was-finall\" target=\"_blank\">Deutsche Bank Sums It Up &#8220;The Fragility Of This Artificially Manipulated Financial System Was Finally Exposed&#8221;<\/a><\/h3>\n<p>Today&#8217;s dose of vile tinfoil hattery magick comes straight from the bank with the cool $55 trillion or so in derivatives,\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-06-12\/deutsche-bank-next-lehman\">Deutsche Bank<\/a>:<\/p>\n<blockquote>\n<div class=\"quote_start\"><strong>The fragility of this artificially manipulated financial system was exposed over the last couple of days of last week. It all ended with the S&amp;P 500 falling -3.19% on Friday &#8211; its worst day since November 9th 2011.<\/strong><\/div>\n<p>* * *<\/p>\n<p>We&#8217;ve long felt that the only thing preventing another financial crisis has been extraordinary central bank liquidity and general interventions from the global authorities which we still expect to continue for a long while yet. So when policy changes, risks arise. The genesis of this recent sell-off has been the threat of the Fed raising rates next month, but China&#8217;s confrontational move two weeks ago and the subsequent knock-on through EM have accelerated us towards something more serious. We always thought something would get in the way of the Fed raising rates in September and we&#8217;re perhaps seeing this now. With 24 days to go until we find out, the probability of a hike has gone down to 34% from a 54% recent peak on August 9th. Having said we always thought something would come along to derail a Fed rate hike we probably should have gone underweight credit.<strong>However with trading liquidity poor and with a reasonably high desire to be long amongst investors there has to be a big move to justify the change in stance.\u00a0<\/strong>Also with a strong possibility that the Fed will relent and that China could add more stimulus soon, there may be a small window to be short European credit. So at the moment this could be a dangerous time to sell.<strong>However if it wasn&#8217;t for expected intervention and extraordinary central bank policy we would be very bearish as the global financial system remains an artificial construct reliant on the largesse of the authorities.<\/strong><\/p><\/blockquote>\n<p>So 6 years after we first said what at the time was seen as heretical &#8220;tinfoil&#8221; conspiracy theory, now everyone admits it. Almost time to take a vacation maybe&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Deutsche Bank Sums It Up &#8220;The Fragility Of This Artificially Manipulated Financial System Was Finally Exposed&#8221; Today&#8217;s dose of vile tinfoil hattery magick comes straight from the bank with the cool $55 trillion or so in derivatives,\u00a0Deutsche Bank: The fragility of this artificially manipulated financial system was exposed over the last couple of days of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,2370,1668,1839,1732,303,312,317,8417,927,4318],"class_list":["post-11435","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-conspiracy-theory","tag-derivatives","tag-deutsche-bank","tag-emerging-markets","tag-fed","tag-financial-crisis","tag-financial-system","tag-manipulated-financial-system","tag-manipulation","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11435"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11435\/revisions"}],"predecessor-version":[{"id":11436,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11435\/revisions\/11436"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}