Oh shit. The Bond King, Jeff Gundlach, just dropped a mic on all of you bank lovers out there — pulling Credit Suisse out from his closet — holding it up by its petard and demanding an answer to his question.
WHO THE FUCK WILL BAIL THEM OUT, HUH?
The culprit, you ponder? Negative interest rates and its destructive implementation of horrible economics. Year to date, European banks have shed upwards of $280b in market cap. And in spite of that unfortunate fact, markets have gleefully shot higher — whilst urinating and defecating onto the faces of all of the bank CEOs.
“You cannot save your faltering economy by killing your financial system and one of the clear poster children for this is Deutsche Bank’s stock price,” Gundlach, 56, said at Grant’s Fall 2016 Investment Conference on Tuesday in New York. “If you keep these negative interest rate policies for a sufficient future period of time you are going to bankrupt these banks.”
While the Frankfurt-based bank would ultimately be rescued by the German government if needed, other banks in the region wouldn’t be able to count on such support, Gundlach said.
“Deutsche Bank will be supported by Germany if push comes to shove,” he said. “But what about Credit Suisse, which has shown a similar decline in stock price? Who’s there to bail them out?”
The world is better off disolving the bankd and then get glass segal bavk and we will have new banks. Bail in time as three strikes snd your out