The House Of Cards Is Coming Down
by Egon von Greyerz
Deutsche Bank is bankrupt. China’s $30 trillion credit bubble will implode. Most banks will not survive. Banks stocks are down 20-50% this year and credit default swaps are surging in price. Hedge funds and speculators are losing fortunes on a surging yen. Short Yen was a guaranteed winner. But that carry trade is leading to massive market losses with the Yen gaining 10% in 12 days.
Yellen is now worried about interest rates. Well, we told her so in December. More countries are lowering rates to negative. Sweden just cut another 15 basis points to minus 0.5%. Crude oil is making new lows at $26. Stock are crashing around the world.