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Ep. 497: David Stockman Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The German Bank Crisis and the European Banking System

The Deutsche Bank crisis is only the opening event of what's going to be a worsening and continuing crisis in the whole European banking system. There are hundreds of trillions of risky assets on the balance sheet of European banks that are counted as zero in their risk asset based reckoning because of these very convenient but I think nonsensical conventions or rules. All of this just highlights how extreme this whole bubble and deformed system of finance has become in Europe and elsewhere around the world. The French debt which now is trading at preposterously low yields was well under 1% on the 10 year in fact for a while it was around 30 basis points.

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