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Tom Winnifrith Bonus Bearcast - Happy Birthday Bearfacts: The next banking crisis looms

By Tom Winnifrith

9 February 2016 08:44

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A bonus bearcast and a birthday request answered - how big will the next banking crisis be and are we about to suffer it? I offer up a few thoughts in this additional podcast.

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Comments

Daniel Victor

9 February 2016, 09:11

Eek ! Deutsche Bank is too big for them to allow it to fail.They’d have to prop it up – at least,I bloody well hope they would !
Phil

13 February 2016, 01:31

I have seen some dumbass in my time, and I’ve done a few myself. But I have never seen anything quite so dumbass as a belief you can create wealth with the printing of imaginary money. I never expected to find a single person who believe in anything so stupid, never mind populations of you. I should have known.

The consequence is there is £375 billion of imaginary wealth has migrated in company balance sheets, share prices and in shareholder portfolios. What is going here, and has been going since H214, is reality stepped in and is getting rid of all that imaginary money, few if any company results justified those heady share prices.

When reality has taken all the imaginary money out of the markets and out of shareholders portfolios, the market will be back to reality and correctly valued to reflect the British economy, and as you printed £375 billions quid’s worth of the stuff, you can expect the process will some time. When it has all gone, that will be the bottom of the market, that will be the time to buy.

You could speed up the process by shorting the the money out, as I am doing. Selling this market down seems to be the only game in town at the moment. Because it is dumbass to believe you can create wealth using imaginary money, this time it was you that should have known.