Banks are supposed to be stogy, risk adverse institutions that make their money on safe investments, like US treasuries. This truism has held for decades when holding treasuries issued by the US government were the safest of safe bets. But that changed this week when the Fed chairman, Jerome Powell let slip that inflation was running hotter than the Federal Reserve could tolerate and indicated a significant rise in interest rates was on the way. Here
Imagine you’re an American bank that has been stacking up federal paper for years now our government has run up the debt. Now you’re being told you should have waited before buying those promise on paper from our government since the treasuries you’re holding now aren’t going to pay out what new notes will soon. That means the government paper you’re hold would sell at a discount if you tried to sell it today. Which is all fine and good, the banks can just hold that paper and take a little less interest, until you realize this is what you’ve capitalized your bank on and there are regulatory rules about how much you’re supposed to have on your books as assets. Here
Silicon Valley Bank has just been shuttered by the FDIC after a prolong run on deposits. Here
This is having a ripple effect on the confidence in other US banks. Here
This is not good. At all. Hard to believe this coup has taken us to third world status is 2 years. Our money is not worth the paper it’s printed on and the economy is taking a nose dive. Maybe Zelensky will loan us a few of our worthless dollars.
To add insult to injury the Chinese announced that they have brought Iran and Saudi Arabia together to open embassies in Beijing with obvious implications of an oil for Yuan deal to follow. This is bad because it cuts out the US$ and under cuts its status as a reserve currency. Imagine what happens to this nation of out of control spendthrifts when the rest of the world stops wanting to hole our rapidly inflated (and thus less valuable) money.
That scene from “Aliens” comes to mind where their spaceship is wrecked, “Game over, man. Game over.”
Great Job Joey Shitpants!
I guess I’ll run down to my bank tomorrow and withdraw my $15….
FJB
Remember the Weirmar Republic? We have very stupid and corrupt people leading us.
$64 Dollar question (ironic):
Is the Chinese orbit of countries crapping the Dollar before our FED goes digital – or are we actually the ones doing it – all to improve the eventual and ultimate acceptance of a digital Dollar and total human control?
But that changed this week when the Fed chairman, Jerome Powell let slip that inflationโฆ.
By design. There is no possible way this wasnโt the plan. Shutting down access to energy. Shutting down food processing plants. Shutting down access to fertilizer and herbicide.. Shutting down access to computer chips.
If you cut supply to essential items and the demand remains constant what the fuck do you think the invisible hand that guides the market is no longer invisible. Introduce market dislocations, then hand out food stamps and EBT cards like Monopoly money.
I
Forbes is saying Health Care is next. Their headline describes today’s blood letting to a “T.”
https://www.msn.com/en-us/money/markets/dow-plunges-nearly-1-500-points-in-worst-week-since-june-as-bank-stocks-collapse/ar-AA18qnbh?ocid=msedgntp&cvid=8e85f796b15b46e9807e74fb0977419c&ei=18
If they donโt want to see Donald Trump get 70% of legitimate votes they better get the fuck out of the way pronto. If they continue on the path they are on all they are going to have is the 30% of the hard left that is never in play.
The Tin Foil hat crowd has been saying for sometime now that this is why they want access to your 401 Ks.
A month ago, Jim Kramer was saying buy buy buy Silicon Valley Bank.
And Michael Burry was saying sell sell sell.
The House always wins.
And the Senate.
A few months ago I considered buying a pallet of whiskey to have barter material on hand. That still might be a good idea. I did buy a couple cases and Iโm starting to develop a taste for it.
This is just the beginning, but what the hey.
The Doors – The End
This is the end, beautiful friend,
This is the end, my only friend.
The end of our elaborate plans,
The end of everything that stands,
The end, no safety no surprise,
The end, I’ll never look into your eyes again.
Why in the hell do we keep doing this? Why do we recirculate the same failed ideas, the same failed ideologies? This one is different than the others I’ve lived through because in this one we’re told that we will own nothing and be happy. Oh, and eat the bugs along with meat made from cancer cells.
Thanks Dominion.
Just a note. At Kitco:
The 2023, One-Ounce American Liberty/Eagle $50.00 gold coin is now only available in the USA ONLY.
The One-Ounce American Liberty/Double Eagle $50.00 gold coin is only available in CANADA ONLY.
Kitco is also OUT OF STOCK on other years, multiple packs of the above, including year, tubes and boxes for various other one-ounce silver American Eagles and 1/2-Ounce gold American Eagles. Also, note: one-ounce Canadian gold Maple Leaves are priced at $75.00 BELOW America one-ounce gold coins.
This is the first time in some 25 years of watching Kitco gold and silver move and prices, that I have ever seen anything like this occur.
Of course, I do not keep track every single day and night and this may be only temporary. Currently, gold is about $1868.00 and Silver is about $20.50 (3-10-2023).
Also, an unusual jump up from approx. $1,830.00 to approx. $1870.00 occurred starting around 8:15 AM today
The fist of many dominoes to fall.
JD – for Donald Trump get 70% of legitimate votes, first we have to get to 2024! Jackass Joe and his happy collection of fruitcakes is hell bent for leather to make the USA fail before that! If we have a cascade of bank failures that just might come true!
edit: first
Itโs sad and scary to think the ASSHOLES of the world have outsmarted our โelectedโ officials.
But, when our ‘elected’ officials are so easily bought off, and/or blackmailed….this is the predictable outcome.
Clearly the result of the prior administration for deregulation of the banking system. Cut & gut government regulations has consequences. Big thanks to Donald Trump.
About time to see one of those “too big to fail”, actually fail.
^^^ that way we get to pay for it.