The 72 hour scramble to save the United States from a banking crisis
?
Were all over here wiping our brows,
going
"Whew, that was close"
etc
When in all reality?
We just caught a glimpse of the
current Iceberg armada we are currently sailing into.
(Minefield etc,
whatever analogy you wanna use :-)
And yes I know these banks were a lil different,
Heavily invested in Bonds,
Venture capitalists funding
Crypto
Lots of not insured accounts etc...
However:
That doesn't mean there isn't weakness in the banking sector, not just in the US but abroad as well.
Credit Suisse shares soar after central bank offers lifeline
(Had to be Credit Suisse right?
How's Robert Kiyosaki prediction the other day looking now?)
"Credit Suisse shares surged Thursday after the Swiss central bank agreed to loan the bank up to 50 billion francs ($54 billion) to bolster confidence in the country’s second-biggest lender and blunt concerns about the international financial system following the collapse of two U.S. banks."
"That was a massive turnaround from a day earlier, when news that the bank’s biggest shareholder will not inject more money into Credit Suisse."
(I wonder who that is and why that is?)
"The Swiss National Bank said Wednesday that it was prepared to back Credit Suisse because it meets the higher capital and liquidity requirements imposed on “systemically important banks,” adding that the problems that have hit some U.S. banks don’t “pose a direct risk of contagion” to Switzerland."
It is, in short, an effort to build trust."
“systemically important banks,”
=
"To big to fail."
" Dont pose a direct risk"
Key phrase being
"a direct risk."
Translation:
"There is a risk."
“Regulators will certainly be hoping in Switzerland that this is enough,” Russ Mould, investment director at AJ Bell, an online investment platform. “They don’t want anybody to be the person who sits in a darkened room or darkened cinema and shouts fire, because that’s what prompts a rush for the exits.”
”So that what they’re trying to do is say to depositors, ‘Your money is safe, we’ll backstop you, we’ll backstop the bank, provide it with liquidity,’” he said. “They’re trying to say, move along. Nothing to see here.”
(Which means ya might wanna think otherwise.)
"Credit Suisse, which was beset by problems long before the U.S. bank failures..."
"Despite the banking turmoil, the European Central Bank went with a large, half-percentage point increase in interest rates to tackle stubbornly high inflation, saying Europe’s banking sector is “resilient,” with strong finances."
(I guess the Dems and Biden caused tat too right?
It's Europe people, come on now...
It's (inflation) everywhere.)
"Higher rates fight inflation..."
(Not the kind of systemic inflation we got rn it doesn't.)
They might lower it for a while.
But, to much $ in the system,
supply line issues,
War in Ukraine
(Done in large part just to make the situation in "the west" worse mind you.)
generational worker shortages etc?
It just wont do anything to fix any of that.
Central banks, our Fed included
just dont have the tools to deal with what we are entering into.
"...but in recent days have fueled concern
that they may have caused
hidden losses
on bank balance sheets."
(How and why are the losses "Hidden"? One might ask.)
"U.S. authorities on Sunday said they would guarantee all of the deposits of California-based Silicon Valley Bank and the smaller Signature Bank of New York, making sure people wouldn’t be hurt by the collapse of the banks. The U.S. Federal Reserve also announced additional funding to ensure other banks could meet the needs of depositors.'
(They gonna do that for a bank in Topeka?
Des Moines?
You already know that answer...
Queue my buddys wife:
"We've already seen this TV show!"
"Additional funding"
?
Robert Kiyosaki is right.
Were just gonna keep printing $,
and Robbing Peter to pay Paul
rearrange the deck chairs on the Titanic
like Peter Schiff says etc..
Until the inevitable "Collapse's" comes.
It's not a crisis this time.)
"John Gieve, a former deputy governor of the Bank of England, said the rapid response is different from what happened at the start of the global financial crisis 15 years ago. At that time, U.S. authorities allowed the investment banking giant Lehman Brothers to collapse."
“That was what spooked the markets as a whole, because they didn’t stand behind it,” Gieve told the BBC. “So what we’ve seen overnight is the Swiss central bank saying, ‘No, we will not let this get into a disorderly collapse.’
(Is an "orderly collapse"
really all that much better?
We have staved it off for now
but the underlying conditions still remain,
and the inevitable will come one day...
“I don’t know what the future of a Credit Suisse holds, but so far they’re still standing,” he added. “And it looks like the Swiss central bank will ensure it’s standing long enough to rearrange its affairs for the future.”
("...ensure it’s standing long enough to
rearrange its affairs..."
Rearranging deck chairs on the Titanic anybody?)
"Banks are under pressure after interest rates rose rapidly following a prolonged period of historically low rates."
(It's just like Peter Schiff said:
If you artificially hold down interest rates?
When you do have to raise them?
(The only real tool in the Fed toolbelt
even though it wont touch built in inflation?)
The bounce back is higher and worse
than it would have been if you hadn't artificially held them down for as long as they were.
("Well why did we hold them down for so long blah blah blah..."
Cause we had no other option to keep things going.
The lack of available good options somebody keeps saying etc...)
Do you see how long they were
the lowest they have ever been?
(The black arrow points it out.)
That is the lowest they have ever been
and for the longest time on record.
Like a lot of other things that are going on,
it's built into the system!
You can't fix it.
You wont fix it.
And you cant hide from it.
It was part of QE which was uncharted territory when we started it.
Now we know where it leads:
Where do you really think this is going to end?
)
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