Deutsche Bank: EU Banks Need $166 Billion Bailout

According to chief economist of Deutsche Bank, European banks urgently need a $166 billion bailout.

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Deutsche Bank: EU Banks Need $166 Billion Bailout

According to chief economist of Deutsche Bank, European banks urgently need a $166 billion bailout.

David Folkerts-Landau, Deutsche-Bank AG’s chief economist, says EU banks desperately need significant recapitalization efforts, Italian banks in particular.

“Europe is extremely sick and must start dealing with its problems extremely quickly, or else there may be an accident. I’m no doomsday prophet, I am a realist.”

Of particular concern are Italian banks, whose estimated €360 billion in bad loans could cause a bank failure and ripple effect, affecting the rest of the EU. While Folkerts-Landau does not see the impending financial issues to be as grave as those transpiring in 2008, he nonetheless foresees a crash in the long-term.

“I do not expect a second financial crisis like in 2008. The banks are much more stable today and have more equity. What we face this time is a slow, long downward spiral.”

EU’s post-Brexit problems keep piling up

The European Union’s financial ills, both prompting and resulting from Brexit, continue to worsen. Since the UK’s exit, European bank shares have lost one third of their value. JP Morgan-Chase is counting on Scotland to leave the UK, and American Billionaire George Soros believes that the collapse of the EU could be inevitable.

Bitcoin remains a strong alternative, however, the EU has implemented rules cracking down on anonymous Bitcoin trades, which may lead to a chilling effect on blockchain-based innovation.

Bitcoin: the solution to the broken central banking system

The underlying issue behind the continuing global financial issues is the failed central banking system, whose biggest proponents still self-interestedly avoid. This shows no sign of slowing down, as even major US presidential candidates are doubling down on the inflationary monetization of government debt instead of promoting sound money. Smart EU citizens will invest in Bitcoin in case of a collapse.

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