Deutsche Bank: Cuts Won't Help
A member of our foreign legion of dishonor...
warned that the Federal Reserve's dramatic cuts in interest rates are unlikely to solve the wider problems in the American economy.
Deutsche Bank admitted that it may not hit its profit target for the year as the credit crisis deepens.
"Compensating for these negative effects on our profitability through performance in our other businesses may not be feasible,
particularly if assumptions for continuing, albeit slower, economic growth in 2008 are not correct and less favourable economic conditions prevail."
Germany's biggest bank said that slashing rates will
"provide short-term stimulus, but they do not address structural issues in the US economy, such as the low personal savings rate."
The Nattering One muses... notice the caveat "if assumptions... are not correct and less favourable... conditions prevail." Bank on it.
warned that the Federal Reserve's dramatic cuts in interest rates are unlikely to solve the wider problems in the American economy.
Deutsche Bank admitted that it may not hit its profit target for the year as the credit crisis deepens.
"Compensating for these negative effects on our profitability through performance in our other businesses may not be feasible,
particularly if assumptions for continuing, albeit slower, economic growth in 2008 are not correct and less favourable economic conditions prevail."
Germany's biggest bank said that slashing rates will
"provide short-term stimulus, but they do not address structural issues in the US economy, such as the low personal savings rate."
The Nattering One muses... notice the caveat "if assumptions... are not correct and less favourable... conditions prevail." Bank on it.
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