Gold has all the potential to go unprecedentedly high. But silver will be gold on
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"Nowhere To Hide In CMBS": CRE Nuke Goes Off With Small Banks Accounting For 70% Of Commercial Real Estate LoansMar 21, 2023 - 05:24:24 PDT
Recently we warned that the office commercial real estate implosion is rapidly transforming into the Big Short 3.0 (see "Why Small Banks Are In Big Trouble: As Hedge Funds Pile Into The New "Big Short", The Next 'Credit Event' Emerges") one which would also have a devastating impact on small banks due to their outsized exposure to the sector (Goldman recently calculated that up...
Responding to bank failures in 1972 and 1984, the Federal Reserve pursued two very different paths, with very different consequences for inflation.
\Bond markets in some of the world’s most vulnerable economies are flashing default warnings as turmoil in the US and European banking systems makes it even tougher for emerging nations to borrow and repay debt.
UBS Group AG is more reliant for its capital on the type of risky bonds that were wiped out in the Credit Suisse Group AG takeover than any other major lender in Europe.
\From Washington to Zurich to London, central bankers need to make a pivotal decision in coming days: whether their biggest immediate fear is financial or price stability.
A systemic credit event has replaced stubborn inflation as the key risk to markets for increasingly pessimistic investors, according to Bank of America Corp.’s latest global survey of fund managers.\
Bank failures, market turmoil and ongoing economic uncertainty as central banks battle high inflation have increased the chances of a “Minsky moment,” according to JPMorgan Chase & Co.’s Marko Kolanovic.
After an incredibly volatile couple of days, stocks ended higher last week, with the S&P 500 rising 1.4%. The index is now up 2.0% year to date, up 9.5% from its October 12 closing low of 3,577.03, and down 18.3% from its January 3, 2022 closing high of 4,796.56.
“Bottom line is we still have an inflation problem, and the Fed needs to continue to raise rates,” Paul Gruenwald, chief economist at S&P Global Ratings, told Yahoo Finance. “So, they’ve obviously got one eye on the financial sector, but we still think they’re going to go 25 basis points later this week. But the language should be sort of softer and slower.”
With the banking crisis rolling alone, recession risk comes back into focus.
US stock futures and global markets rose Tuesday after coordinated action by the Federal Reserve and other leading central banks to keep dollars flowing around the financial system appears to have calmed nerves for now.
In this episode of Metal Exchange, host Mike Maharrey chats with SchiffGold analyst Tony about the recent bank failures, the bailouts, the reaction of the markets and what might happen next. They conclude that if you're betting that the Federal Reserve has everything under control, that's probably a bad bet!
The demise of Silicon Valley Bank and Signature Bank was just the tip of the iceberg. As it turns out, hundreds of banks are at risk. This explains why the Federal Reserve and US Treasury rushed to provide what is effectively a bailout for the entire banking system.In the first week, the Federal Reserve handed out more than $300 billion in loans through its newly created Bank Term Funding Program (BTFP).
Peter appeared on Fox Business Claman Countdown to talk about the recent bank failures and the ensuing government bailouts. During the interview, they discussed how to invest in the current environment. Peter said that right now, gold is undervalued, but investors will bid up the price much higher when they come to terms with the reality of inflation.
Mar 20, 2023 - 13:02:53 PDT
Dubai: Gold has again shot past $2,000 an ounce as investors worldwide keep worrying about a continued crisis for the banking sector – even after Swiss bank USBS confirmed it will buy troubled Credit Suisse for $3.23 billion.
Gold prices in Australia also touched their peak of $2,922 an ounce, fuelled by the falling value of the Australian dollar against the US dollar.
Trying to fit a square peg into a round hole. Looking for inflation in All the Wrong Places.
The global economy is at a critical crossroads with a number of interlocking challenges and crises running in parallel. The uncertainty around how Russia`s war on Ukraine will play out this year and the war`s role in creating global instability means that the trouble on the inflation front is not over yet.
Mar 20, 2023 - 12:55:32 PDT
The best performing precious metal for the week was silver, up 10.16%, in response to the strong move in gold.
Mar 20, 2023 - 12:53:15 PDT
China has discovered a super-large gold deposit, the Xilaokou gold mine in Rushan, East China's Shandong Province, with an estimated reserve of 50 tons, China Media Group reported on Saturday.