Deutsche Bank (DBK) said on Wednesday that the worst period of the global financial crisis is yet to come, because the default rate be maintained at a lower level of central bank financing of running out.

- Jim Reid Jim Reid and Nick - Burns (Nick Burns), led by Deutsche Bank strategist, said in a report today, the credit default swap prices show that there are four or more EU countries may experience a so-called "credit event" such as had its own debt restructuring. Markit iTraxx SovX Western Europe Index exponential growth in the past month, used to track the 15 EU countries, including Spain and Italy, including credit default swap price changes of 26% in the Euro zone sovereign debt crisis suddenly intensified.

Credit default swap is a financial derivative products derived from credit card loans, can be seen as insurance against default of a financial asset, creditors through this contract, debt risk by selling the contract price is premium. The purchase of credit default insurance is known as the buyers risk, the party was called to the seller. The two sides agreed that the financial assets there is no event of default, the buyer to the seller on a regular basis to pay the "premium" in the event of breach of contract, the seller bears the buyer's loss of assets.

Deutsche Bank analysts said in a report on middle finger, said: "If an event of default of these banks are gradually becoming a reality, then the next five years in the corporate and financial non-compliance will be more serious than in the past five relatively calm years due to financial measures have been very close to reach the saturation level of reason, whether there will be activities can be tolerated and the extent to which this situation is largely dependent on printing money.”

The analyst pointed out that between 2007 and 2011; the default rate is the basic line with historically normal levels, because the EU and U.S. policy makers were "unprecedented intervention". The ECB to take a total of 1 trillion euros (about $ 13,000) long-term refinancing operations (LTRO), and the Federal Reserve adopted a so-called "distorted operation, the credit market once growth; But now, This growth momentum is slowly weakening.

September 21, the U.S. Federal Open Market Committee (FOMC) decided to take the so-called "distort the operation" (Operation Twist,), is to lengthen the average maturity of bonds held assets, plans to buy before the end of June 2012 $ 400,000,000,000 U.S. Treasury bonds, the remaining maturity between 6 to 30 years; sell the same amount of U.S. Treasury bonds, the remaining maturity of 3 years or less.