Sound Advice: January 26, 2026

What's ahead for the financial markets.

The Gestapo was Nazi Germany’s secret state police, formally called the Geheime Staatspolizei, which operated from 1933 to 1945 as a central instrument of political repression and terror. It targeted anyone seen as an enemy of the Nazi regime—such as political opponents, Jews, Roma, LGBTQ people, clergy, and other marginalized or dissenting groups—using surveillance, informants, arbitrary arrest, torture, and imprisonment in concentration camps, often without any legal process.

What methods did the Gestapo use to spy on citizens?

The Gestapo relied on a mix of formal powers and a vast, informal network of fear and denunciations to spy on people. Their methods blurred ordinary policing with political terror.

Key spying methods

• Widespread use of civilian informants
  Many ordinary Germans, coworkers, neighbors, and even family members secretly reported each other to the authorities (so‑called “denunciations”), often motivated by ideology, personal grudges or hoped-for rewards.
• Intercepting mail and phone calls.
  Officers could open letters, read personal correspondence, and listen to telephone conversations without warrants or judicial oversight, using this information to identify “suspicious” attitudes or contacts.​
• Home searches and physical surveillance
  Gestapo agents conducted unannounced searches of homes and workplaces, followed suspects, and watched meeting places and public spaces, again without legal limits or the need to justify their actions.
• Plainclothes operations
  Many agents worked in everyday clothing, not uniforms, which allowed them to blend into crowds, attend gatherings, and move through communities while observing and listening without being noticed.​
• Interrogation and pressure to name others
  Once someone was arrested, interrogations often used threats, blackmail, and violence to force the accused to identify friends, colleagues or acquaintances, turning each case into a source of new surveillance targets.

Together, these methods created an atmosphere where people never knew who might be listening or reporting, so self-censorship and fear became a major part of how the Gestapo controlled society.

What was the impact on the German financial markets?

By the end of World War II, German financial markets had effectively collapsed; the currency was discredited; banks were insolvent; and functioning capital markets had disappeared.