Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Mar 31, 2023 - 11:52:05 PDT
Serious issue. US policy has been very harsh, causing countries to abandon the dollar.
"Two-hundred-seventy billion dollars’ worth of commercial real estate loans [are] coming up for renewal this year, 70% of that is held by smaller regional banks," former acting White House chief of staff Mick Mulvaney noted...
Shares of the firm have plunged 34% in March, set to be their biggest drop since October 1987, the month when the biggest single-day stock market crash, dubbed Black Monday, occurred. The rout has wiped out $47 billion in market value from Schwab, roughly equivalent to the size of Truist Financial Corp.
‘Most U.S. Banks Are Technically Near Insolvency, & Hundreds Are Already Fully Insolvent,’ RoubiniMar 31, 2023 - 10:48:59 PDT
MW: Bank sector stress makes a stagflationary debt crisis more likely and severe, writes Nouriel Roubini.
Nouriel Roubini, CEO at Roubini Macro Associates, explains the "megathreat" he sees from higher interest rates, why he expects an economic and financial crash, and US labor market issues. He speaks from Cernobbio, Italy on "Bloomberg Surveillance Early Edition."
The Federal Reserve’s higher interest rates after 12 years of zero interest rates are devaluing the asset side of banks’ balance sheets. This frightens depositors and they withdraw their deposits. Depositors also are withdrawing their money because they can get much higher interest rates on safe US Treasuries. According to some reports, $1 trillion has already been withdrawn from US banks...
This sector, she said, includes things like hedge funds, money market funds, and digital assets, the last of which the Biden administration is continuing to evaluate. She paid close attention to stablecoins, which she said have a structure that creates the types of "run incentives" found in the traditional financial system.
Mar 31, 2023 - 08:17:50 PDT
The dominance of the US dollar has been causing increasing problems for economies around the world. As a result, there is a growing undercurrent of interest in finding alternative reserve currencies. China is pushing for the yuan to become a reserve currency, but a possible BRICS+ Central Bank Digital Currency (CBDC) may have the edge
This month, Russia and China are sparking new jitters in Washington. That is primarily because of their stage-managed displays of diplomatic unity, around Ukraine and much else.
U.S. money supply is falling at its fastest rate since the 1930s, a red flag for the economy and financial markets.
The dangers of U.S. banks holding large amounts of uninsured deposits came up repeatedly in his testimony. For example, Gruenberg’s written testimony included these details about the ongoing banking crisis:..
German savers are getting cold feet about deposits held abroad despite juicier interest rates for fear of getting embroiled in a crisis like the one that hit Silicon Valley Bank, data compiled for Reuters shows.
Banks are a bellwether for the economy. It’s worth looking past today’s headlines and asking, “What else is on a bank’s balance sheet that could cause trouble?”
It’s the U.S., Not Europe’s Banking System That’s a Concern, Top Economists SayMar 31, 2023 - 07:06:09 PDT
"We're still fighting inflation, but, at the same time, we're fighting these uncertainties in the banking sector. All of the central banks will try to distinguish between the two and say, on the one hand, we can use certain policies to deal with the financial instability. On the other hand, we can use interest rates to fight inflation. But those two will get muddied, and I think, inevitably, financial instability will become the one that's dominant."
“Old soldiers never die,” said Gen. Douglas MacArthur in his long-ago farewell address of April 1951. “They just fade away,” he added with a note of deep sadness. I sure wish we could say that about Keynesian economists.
Gold prices held steady on Friday, but the safe-haven metal was bound for its second straight quarterly gain after recent banking turmoil raised hopes of a less-aggressive U.S. Federal Reserve and shored up interest in bullion.
The Fed's favorite inflation indicator - Core PCE Deflator - was expected to remain 'sticky' at 4.7% (but instead it came in modestly lower at 4.6% YoY - lowest since Oct 2021). Headline PCE fell to 5.00% - lowest since Sept 2021...
In a quick succession this week, Beijing unveiled ground-breaking deals to further its efforts to promote the yuan and ditch the US dollar. It’s the kind of thing money-market guru Zoltan Pozsar had in mind when he warned that the dollar’s centrality in the world financial system is slowly being whittled away.
Mar 31, 2023 - 05:48:55 PDT
A meeting between ASEAN Finance Ministers and Central Bank Governors discussed the move to settle financial transactions and settlements in local currencies.
Investors moved $508 billion into cash in the first quarter of this year, the largest quarterly inflow since the market turmoil early in the COVID-19 pandemic, according to BofA Global Research, as the failure of several banks sent markets spinning. Flows into cash of $60.1 billion in the week to Wednesday were down from $142.9 billion the previous week, but the quarterly dash for cash...