I have repeated, many a time and oft', the warnings of experts that whilst the Greek and Italian banking crises are important, they fade into insignificance when compared to the German banking crisis - oh yes, there is a German banking crisis and it's just around the corner! I refer mainly to Deutsche Bank, but also the next biggest bank in Germany, Commerzbank, is also in dire trouble. Matthew Lynn in The Telegraph spells out the details and whilst it is wrong to exult at the problems of others, especially when their difficulties could very quickly become your difficulties, nevertheless, there is nothing quite like a delicious bowl of schadenfreude!
Shares in Deutsche Bank have been dropping like a stone for over a year now, helped on their way down by the US (non)Justice Department which has slapped them with a $14 billion fine (with friends like that who needs enemies?) and so critical has the situation become that the 'Kaiserin', herself, has intervened. In true, Germanic, free market style she has made it absolutely and definitely clear beyond any doubt whatsoever, that her government will definitely not intervene to rescue this bank - verstehen? Yes, of course, Ma'am, but are you not the leader who invited the world and his uncle to enter Germany if they so wished, until the immigrant figure reached a million or more - at which point you changed your mind?
As Mr. Lynn emphasises in his report, the collateral damage from a collapse of one or two major German banks would shake the already crumbling foundations of the Italian, French and Spanish banking systems at which point the whole European edifice will be trembling but if, under that immense pressure, she changes her mind and decides to support her German banks then standby for massive rage and riots in Greece and Portugal.
Perhaps we Brits invoking Article 50 of the EU treaty will be made redundant as the whole damn thing collapses on its own. Oh dear, what a pity, never mind!