Holy shit. The green bar above is the entire GDP of Germany. The blue is the entire GDP of the Eurozone. The red is Deutsche Bank’s current derivative exposure. Isn’t that nice?
Let’s put this in perspective. Germany is considered, probably correctly, Europe’s strongest economy. Deutsche Bank is the largest bank in Europe, and the argument could be made that it’s the largest bank in the world, since it has more derivative exposure than even America’s most exposed bank, JP Morgan. Europe’s economy is problematic to say the last, and Deutsche Bank keeps dumping stock to keep up with everything.
If anything major goes wrong in Europe, Germany, the U.S., or Deutsche Bank, that $75 trillion of derivatives will be called in…and all hell will break lose.
Who will pay for all of this crap? The bankers? Nope. The politicians? Nope. The answer is you will, at least if you live in Europe (but possibly even if you live in the U.S.!). The government will put a gun in your face and make you pay up, and hand the money over to your banker overlords.
But I’m sure, as Deutsche Bank (and all the banks) keep saying, everything will be fine. You Europeans just keep right on voting for those same parties and politicians you’ve always voted for. Nothing to see here. Move on.