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A look at Denmark in case of Danske bank crash. speculative tendencies on Danish economic crash

Monday, 12 December 2011
If Danske Bank, the biggest banking group in Denmark should crash, the Denmark would lacks money to rescue the major banks. Therefore, the risk would be that Denmark itself would be at the edge of bankruptcy, believes hedge fund Luxor Capital in the U.S..

According to the Danish daily,  Politiken,  the hedge fund, Luxor Capital, which just makes money on that happening, that the Danish economy will collapse, say so even though the Danish economy traditionally is seen as strong.

But the Fund  believes that it is precisely what would happen that Danish bank will collapse and the Denmark would not be able to recue it. As such Denmark to o will go bankrupt

Luxor was mentioned in the Danish media last week, when the U.S. Treasury website brought excerpts from a newsletter from Luxor.

Luxor attach their feelings of their views to the Danish households’ have very large debts and that the Danish banks have made themselves dependent on financing from abroad.

“This shows that Denmark is not immune from the debt crisis.”

The idea behind the speculators' investment is not that Denmark is going bust. But they are betting that Denmark will soon get into trouble, as insurance against a crash will increase in price - so that speculators can sell to them much more expensive than they bought them. 
By Team

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