Friday, October 9, 2015

Deutsche Bank Warning Provides Nonofficial Explanation of Fed's Rate Decision

News
Deutsche Bank's warning to investors that it will post nearly a $7 billion loss in the third quarter suggest unbelievable strain within Germany's largest bank; Germany is the cornerstone economy of the euro zone. The Fed has no interest in becoming the scapegoat for its failure. The Fed's decision to postpone liftoff, driven largely by human behavior, not only makes sense but also fuels conspiracy theories worldwide.

Watch the dollar (Review of US Dollar Index)! An aging down impulse slowly approaching compression defines cause building (chart), a transfer from weak (majority) to strong (minority) hands. The dollar index will rally again once the transfer is complete.

Chart


Headline: Deutsche Bank stock swings after warning of $7 billion loss

Germany's largest bank reported that it will take a nearly $7 billion loss in its third quarter for a write down related to its corporate banking unit.

The news was reported after U.S. markets closed Wednesday, and Deutsche Bank's (DB) stock immediately fell 6% in after-hours trading.


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