What does The beginning of an economic collapse look like?

[PathWalker]

The initial run on the banks is starting with DB

http://www.zerohedge.com/news/2016-0...teral-exposure

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just went to '11' as Bloomberg reports a number of funds that clear derivatives trades with Deutsche Bank AG have withdrawn some excess cash and positions held at the lender, a sign of counterparties’ mounting concerns about doing business with Europe’s largest investment bank.

While the vast majority of Deutsche Bank’s more than 200 derivatives-clearing clients have made no changes, some funds that use the bank’s prime brokerage service have moved part of their listed derivatives holdings to other firms this week, according to an internal bank document seen by Bloomberg News.

Millennium Partners, Capula Investment Management and Rokos Capital Management are among about 10 hedge funds that have cut their exposure, said a person familiar with the situation who declined to be identified talking about confidential client matters.

The hedge funds use Deutsche Bank to clear their listed derivatives transactions because they are not members of clearinghouses. Millennium, Capula and Rokos declined to comment when contacted by phone or e-mail.

Reading this it read very much like MSM fear porn, encouraging the circling sharks with fresh blood in the water.

[mgray]

Posted by AutumnW (here)
Mgray, I know this is off topic and relates more to the article Bill Ryan posted. Nevertheless and sadly, I think some of the elites have positioned a 'strong man' to preside over a country that could descend into chaos and third world conditions.

As China and Russia strengthen, solidify their own ties with some major players in the Middle East, the American dollar could lose its exclusive reserve currency status and default on its loans. The implications for the U.S could be dire. Think too of the very real possibility of a world so completely fed up with the U.S. it is kicked out of NATO and embargoed.

It could happen. The U.S. may end up being regarded with all the respect afforded North Korea.

Prepare for isolation. The U.S doesn't have too much that other countries want. It imports much much more than it exports.

Is this why Trump has a shot at winning? Think of his isolationist message. Are 'they' preparing for massive defaults on U.S bonds held by other nations?

I would say that the pendulum is swinging back away from a globalism towards a more nationalistic theme. Brexit is a prime example of that move.

I don't believe Trump moves to isolationism, but sees that the US needs to take care of things at home first, which does not mean default on the debt, but curtailing spending overseas.

Bankrupting a company under US federal law is quite different than defaulting on US debt obligations. So I do not see that as a concern. We will probably see in the future a haircut on all sovereign across the board in some type of jubilee scenario, before any default happens.

As an aside, I think after the election the pollster will be shown how wrong they were in their assessment of the race.

A "YUGE" Trump win will show that their methodologies were flawed or biased. Whether it was that those polled did not wish to express support for Trump until the curtain close on the voter's booth or the pollsters own biases for Clinton will be worthy of debate.

[PathWalker]

Zerohedge just posted this article:
Bank of England Asks UK Banks To Detail Their Exposure To Deutsche And Italian Banks
http://www.zerohedge.com/news/2016-1...-italian-banks
Am I the only one spotting the circling sharks around?

In what may or may not be a coincidence, just hours after Bloomberg reported that DB launched a probe into whether it "misstated" derivatives, moments ago the FT reported that the Bank of England is seeking details from large British banks on their current exposure to Deutsche Bank and some of the biggest Italian banks, including Monte dei Paschi, "amid mounting market jitters over the health of Europe’s financial sector."

The FT notes that the request was made in recent weeks by the BoE’s Prudential Regulation Authority as investors sold off Deutsche and Monte dei Paschi, both of which have been the subject of scrutiny over their capital levels. Supervisors worldwide have attempted to curtail the links between large institutions since the 2008 banking crisis, when the collapse of Lehman Brothers and other big groups threatened to drag down the entire global financial system.

[PathWalker]

In addition to the above ^^^^ router just released this article:
Deutsche Bank to review valuations of inflation swaps: Bloomberg
http://www.reuters.com/article/us-de...-idUSKCN12Q279

Deutsche Bank AG (DBKGn.DE) is reviewing whether it misstated the value of derivatives in its interest-rate trading business, and is sharing its findings with the U.S. authorities, Bloomberg reported, citing people familiar with the matter.

The lender is looking at valuations on a type of derivative known as zero-coupon inflation swaps, Bloomberg reported on Wednesday. (bloom.bg/2eRLuHH)

After finding valuations that diverged from internal models, Deutsche Bank began questioning traders, according to the report.

Zero-coupon inflation swaps are derivatives whose pay-off depends on the rate of inflation in a given period.