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Money Update October 4, 2016
Marc's Notes:
Kyle after working hard AND smart. 13 big ones= $1,300.00. That is a lot of money for anyone let alone a 16 year old kid. This job took him about 20 hours worth of labor and its all profit! When is the last time you held this amount of cold hard cash?
It’s all good. I love people. I love interacting. I love working and I love what I do. I strive to do the best job I can for my clients, my family, my friends and people who need help. I love helping people and I love doing something different every day and hanging with someone different every day. I am far from perfect but I know what works for me. What works for you? Don't know? Figure it out. Stop, look, listen, evaluate, plan, do.
What floats my boat? Working hard, studying hard, moving forward, staying healthy, playing a bit, making a few waves and riding a few. Make people laugh (a lot!) and help someone every day. I know it’s not all about me nor is it all about you. I also know if it feels right it may or may not be. I don’t mind being bored every once in a while as it means I am comfortable with the only person in the room at the moment and that’s me. I stir the pot on occasion because if someone like me doesn’t do it, a bunch of crap settles to the bottom.
Thanks to everyone for being there, for being you and for contributing to the big round ball we live on and the people on it.
Now like NIKE says, just go do it.
Jambo!
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TURKEY MATTERS IN FULL SWING
Can I count on you? Can our hungry count on you? Let’s do it!
Its time again for our Turkey Matters food drive for the food banks of our counties.
Help me feed the poor with our annual turkey drive where we buy turkeys for the poor. I do this every year and now ask for community support. The program is easy. Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.
Mail: KVMR FM 120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.
I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it.Turkey Matters is now in full gobble gear so ladies and gentlemen, start your envelopes!
Money Matters airs this Thursday October 6, 2016 at NOON PST.
Tune in.
Need investment advice or guidance? Email me at mcuniberti@cambridgesecure.com
We can set up a no cost, no obligation free review of your investments.
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Will we once again see a big bank implode?
The Trouble at Deutsche.
The German banking conglomerate Deutsche has seen better days. Its stock cut in thirds in the last 2 years, investors have hammered the shares under swirling rumors and concerns about its financial health and long term viability.
This bank is no small potatoes. It has more than 100,000 employees in over 70 countries, and has a large presence in Europe, the Americas, Asia-Pacific and the emerging markets. In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of 21 percent.
The trouble started during the banking blow up and housing crash says Wikipedia.
Deutsche Bank was one of the major drivers of the collateralized debt obligation (CDO) market during the housing credit bubble from 2004 to 2008, creating ~$32,000,000,000 worth. The 2011 US Senate Permanent Select Committee on Investigations report on Wall Street and the Financial Crisis analyzed Deutsche Bank as a 'case study' of investment banking involvement in the mortgage bubble. Then when the majority of large banks were retrenching and shoring up capital, Deutsche bet the markets would loosen and increased its leverage. The bet apparently failed as markets remained anemic and bank regulations tightened.
Just because it’s a German bank however, don’t think your tax payer dollars weren’t used to shore up Deutsche. In 2008 Deutsche Bank reported its first annual loss in five decade and received somewhere in the neighborhood of US$11.8 billion from funds provided by US taxpayers when they bailed out AIG, the American insurance company it had dealings with.
Fast forward 7 years later and Deutsche is still in trouble and it appears to be getting worse. Its troubles are not its own however.
With a reported 70 trillion in derivatives on its books (large unregulated bets of which the content and trigger points are known only to Deutsche), it’s collapse, if it indeed happens, would have much greater impact on financial markets then the Lehman Brothers fiasco that many argue was the first domino in the banking blowup that almost melted global financial markets in 2008/09. Jim Willie in his Silver Doctors September 17 essay said:
“The important thing to keep in mind about Deutsche Bank is that it won’t go down alone if it goes down at all. If it fails, it will take along with it 3,4,5,6 or 10, or 15 other banks with it”.
The Street.com added to the specter of a Deutsche failure when it wrote on August 25: “The 2008-2009 global financial crisis, is nothing compared to what would happen if Deutsche Bank, a keystone of the global financial system, collapsed”.
Is a failure of this magnitude plausible?
It’s hard to imagine, given the recent history of central bank intervention when it comes to “too big to fail” bailouts that the global monetary authorities would let Deutsche go under given the possible ramifications of such a failure.
My money is on another bailout should Deutsche be forced to ask for a life preserver. The ironic part here is that this bank, the people who run it and the authorities that regulate it apparently didn’t learn much from the 2008/09 crisis that occurred just a few years ago.
Once again the taxpayers of the world will likely pay the price resulting from the actions of others who were looking to line their pockets with obscene amounts of dough.
