Greenie bank tottering
Germans are the original environmentalists. They have been walking around naked in their forests -- and feeling good about it -- for over 100 years. Even Hitler adopted Greenie ultimate goals of primitive bliss. So modern environmentalism could well be said to be a German invention.
It is therefore no surprise that a major German bank, Deutsche Bank, has been active in promoting environmentalism. They frequently proclaim the truth of Warmism, for instance. And their investments must be "ecologically responsible", of course. No building of dams to benefit poor people in India and Africa. Below is an excerpt from the front page blurb on their site:
Environmental and climate protection are among the most pressing global challenges of our time. We take these concerns into account in all aspects of our business, including minimising our own ecological footprint. Using our expertise in the areas of energy and climate change, we support the development of a more sustainable world economy
Pretty clear. But it is an an old adage that if your theories are wrong, you won't get the results you expect. And that seems to have happened to this group of cabbage-heads. We read:
"Deutsche Bank shares have finally climbed today after falling to a historic low amid mounting fears for the future of Germany's top bank.
Companies in the FTSE 100 index saw £23billion wiped off their value yesterday as investors dumped financial stocks.
The sell-off was triggered by reports that German Chancellor Angela Merkel had ruled out a government rescue of troubled lender Deutsche Bank.
The bank has lost more than half its value in the past year as it struggles to cope with low interest rates and sluggish growth.
Deutsche Bank shares fell another 7.5 per cent to a record low yesterday, dragging other finance stocks down with it.
This morning they fell to €10.25 amid warnings that a dip below €10 per share would take the bank into the realm of a risky investment. However, by this afternoon, shares had risen to €10.63 before the market closed at €10.51 - down 0.4%.
The FTSE 100 Index was down 10.37 points to 6,807.67, as London-listed lenders were dragged lower by the negative sentiment surrounding the German bank"
Instead of lending money to foster "Green" projects, they should have lent to the most promising commercial projects. And instead of worrying about the environment, they should have been worrying about cyclic downturns in the economy. But they did not do that so they got results they did not expect. Their theories about what was important were wrong.
Deutsche could have learned from Australian banks. Australian banks are the world's soundest banks. In 2008 when banks worldwide were falling over and being rescued by their governments, Australian banks just kept on making profits as usual. I know. I had and have shares in most of them.
So how did the Oz banks do it? By sticking to their knitting. They just concentrated on lending to people who were most likely to pay it back. No political lending. No Greenie activism. Pretty simple!