{"id":7023,"date":"2015-04-02T05:36:45","date_gmt":"2015-04-02T10:36:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7023"},"modified":"2015-04-02T05:36:45","modified_gmt":"2015-04-02T10:36:45","slug":"the-mother-of-all-bubbles-in-stocks-and-bonds-bank-ceo","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7023","title":{"rendered":"\u201cThe Mother of All Bubbles\u201d in Stocks and Bonds: Bank CEO"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/04\/01\/the-mother-of-all-bubbles-stocks-bonds-lbbw-ceo-vetter\/\" target=\"_blank\">\u201cThe Mother of All Bubbles\u201d in Stocks and Bonds: Bank CEO<\/a><\/h3>\n<p>The first quarter was hot across the Eurozone. The euro has gotten purposefully crushed by the ECB\u2019s currency war. QE, first promised then implemented, became all the rage. And stocks surged: the Stoxx Europe 600 was up 16%; Italy\u2019s FTSE MIB index up 22%; and Germany\u2019s DAX also up 22%, the sharpest quarterly gain since Q2 2003. Since January 2012, in a little over three years, the DAX has nearly doubled. Only Greece couldn\u2019t get it together.<\/p>\n<p>And bonds have soared to ludicrous levels, with yields turning negative on \u20ac2.2 trillion in Eurozone government debt,\u00a0<a href=\"http:\/\/www.zerohedge.com\/news\/2015-03-31\/almost-3-trillion-european-debt-has-negative-rates-german-yields-collapse-further\">according<\/a>\u00a0to Societe Generale. German government debt is now sporting negative yields up to a 7.5-year maturity, while 10-year yield \u2013 at 0.14% as I\u2019m writing this \u2013 is on its way to negative as well.<\/p>\n<p>So on March 31, Hans-J\u00f6rg Vetter, CEO of Landesbank Baden-W\u00fcrttemberg in Germany, spoke at the bank\u2019s annual press conference \u2013 and fired a warning shot across the bow of investors.<\/p>\n<p>Publicly owned LBBW, a full-service and\u00a0commercial bank, serves as the central bank for the savings banks in the states of Baden-W\u00fcrttemberg, Rhineland-Palatinate, und Saxony. With \u20ac266 billion in assets and over 11,000 employees, it is the largest such<em>Landesbank<\/em>\u00a0in Germany. And it too was dutifully bailed out by taxpayers during the financial crisis.<\/p>\n<p>&nbsp;<\/p>\n<p>And so the press conference had the usual feel-good fare.<\/p>\n<p>\u201cOver the past few years LBBW has gained a very good position to operate successfully on a sustained basis amid a difficult environment,\u201d Vetter said in the bank\u2019s\u00a0<a href=\"http:\/\/www.lbbw.de\/de\/presse\/presseinformationen\/presse_detail_37121.jsp\">press release<\/a>. \u201cOn this basis we are aiming for targeted and risk-conscious growth in our core business areas,\u201d he said.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cThe Mother of All Bubbles\u201d in Stocks and Bonds: Bank CEO The first quarter was hot across the Eurozone. The euro has gotten purposefully crushed by the ECB\u2019s currency war. QE, first promised then implemented, became all the rage. And stocks surged: the Stoxx Europe 600 was up 16%; Italy\u2019s FTSE MIB index up 22%; [&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":[1806,188,285,661,662,4562],"class_list":["post-7023","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble","tag-currency-war","tag-eurozone","tag-qe","tag-quantitative-easing","tag-stock-market-bubble"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7023","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=7023"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7023\/revisions"}],"predecessor-version":[{"id":7024,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7023\/revisions\/7024"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7023"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7023"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7023"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}