/biz/ - Business & Finance

I recently stumbled over the following speech
>https://www.youtube.com/watch?v=jd9LNx5zZqk
(I recommend every german speaking anon to watch it)
I'll sum up his predictions for everyone else:

>most of the profits banks make is due to loans
>because of the negative interest rates european banks started trying giving out as much loans as possible and underbid each other
>because of that the money banks are earning from loans is very little and they are all being kept afloat by loans they made 10+ years ago which they earned a much higher interest rate on
>sooner or later those profitable loans are going to run out and they will be operating at a loss (esp Deutsch Bank)
>they also won't be able to pass down the negative interest rates to their consumers, because they would immediately withdraw the money and use things like apple pay
>the only way to avoid operating at a loss is cutting down on their employees drasticly which is impossible because in most european countries you have pay people a dismissal wage if you want to get rid of them
>when they will be operating at a loss their capital is going to shrink

1/2

>>11513745
Fucking Deutsche Bank is one recession away from collapse. And guess what - it's a fucking recession.

The word on the street is that they wanted a bailout but Merkel said "no".