EPIC FOOD SHORTAGE IS TURNING HUMANS INTO SKELETONS
The largest and most important bank in the largest and most important economy in Europe is imploding right in front of our eyes. Deutsche Bank is the 11th biggest bank on the entire planet, and due to the enormous exposure to derivatives that it has, it has been called “the world’s most dangerous bank“. Over the past year, I have repeatedly warned that Deutsche Bank is heading for disaster and is a likely candidate to be “the next Lehman Brothers”. If you would like to review, you can do so here,here and here. On September 16th, the Wall Street Journal reported that the U.S. Department of Justice wanted 14 billion dollars from Deutsche Bank to settle a case related to the mis-handling of mortgage-backed securities during the last financial crisis. As a result of that announcement, confidence in the bank has been greatly shaken, the stock price has fallen to record lows, and analysts are warning that Deutsche Bank may be facing a “liquidity event” unlike anything that we have seen since the collapse of Lehman Brothers back in 2008.
At one point on Friday, Deutsche Bank stock fell below the 10 euro mark for the first time ever before bouncing back a bit. A completely unverified rumor that was spreading on Twitter that claimed that Deutsche Bank would settle with the Department of Justice for only 5.4 billion dollars was the reason for the bounce. read more…
A rally since late June has the S&P 500 up nearly seven percent in 2016, setting new record-highs almost every day. Faber predicts the index could first grow to 2,300 points from the current 2,182 before the nosedive.
“Maybe we go first to 2,300, then we would have a perfect topping formation. A widening-top formation is about the most bearish technical formation you can have,” Faber said in an interview with MarketWatch.
“When it unravels, we are going to go to 1,100 on the S&P 500,” Faber said.
Faber, 70, is known for his criticism of central bank policies and the US economy. According to him, printing money may result in markets coughing up the “five years of capital gains”.
“We’re all on the Titanic. When things unravel a colossal asset inflation will burst,” he said.
Faber is often criticized by other analysts, as he has been unsuccessfully predicting the stock market collapse each year since 2012.
To this, Faber replied: “There are lots of people who always criticize me. First of all, they have no money. And I always tell them to send me their audited performance over the last 10 to 20 years and we’ll compare.” read more…