financeguy
ONE love, blood, life
The center-right Frankfurter Allgemeine Zeitung writes:
...........
"A vicious circle has begun: Forced sales of securities are pushing down prices, which leads to new rounds of write-offs, causing institutions' capital to shrink -- which in turn makes further sell-offs necessary. The government needs to break through this crisis. Then it will also no longer need to take over the bad risks of the all-too-careless banks."
The financial daily Handelsblatt writes:
"It is not easy to say this loudly and clearly: The German banks are on the edge of the abyss. This is the painful truth, and nothing but the truth. … All of them have been hit (by the financial crisis). We urgently need a 'bad bank' in which a large part of the toxic securities and loans which are still on the banks' balance sheets can be deposited.
The World from Berlin: 'German Banks Are on the Edge of the Abyss' - SPIEGEL ONLINE - News - International
The death spiral of deflation.
Deutschland is one of the more prudently managed Western economies.
Imagine what condition the banking sector is in in the bad boy debt junkie economies (US, UK, Ireland, etc, etc)