Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Our faith in the wobbling world of hyper-financialization will soon be tested.
Looking at this data in isolation, there is nothing one could point to that would possibly induce the Fed to do anything but accelerate the pace of rate hikes, especially given the fact the Fed ignores food and energy.
Government Bonds Held at Banks May Be So-Called ‘Toxic Asset’ of Next Financial Crisis: MWMar 14, 2023 - 12:04:44 PDT
Contagion fears triggered by the collapse of two regional banks is raising the risk of a crisis in confidence in U.S. banks, said fund manager at Eric Sturdza.
Mar 14, 2023 - 12:02:13 PDT
Well, the banking fiasco CREATED BY THE FEDERAL RESERVE is still with us. Why? Because the FDIC guaranteed deposits above $250,000 for the first time in history, bailing out millionaires/billionair…
After the U.S. Treasury, FDIC, and Federal Reserve failed to anticipate the collapse of SVB, they have now applied a band-aid to the wound.
The ripple effects of the SVB collapse will continue for months. In a complex dynamic system such as the banking system and capital markets more broadly, it is impossible to know in advance exactly which firms will fail next, but it is certain that such failures will arise.
Too-Big-To-Fail Banks Flooded With Deposits As Bank Run Drains Small Bank Of CashMar 14, 2023 - 11:42:46 PDT
Over the weekend, amid populist howls of outrage that a bailout of SVB would promote moral hazard (in the end depositors did get bailed out with a full recovery, but other unsecured creditors oddly enough would get nothing, while the common stock is a doughnut), we said that while technically true, the events that toppled SVB and now SBNY as well, are really a subsidy for the big banks.
Welcome to Whose Economy Is It, Anyway?, where the rules are made up and the dollars don’t matter. Or at least that seems to be the view of the Yellen regime. As Doug French noted last week, Silicon Valley Bank (SVB) was the canary in the coal mine.
Yes, the Latest Bank Bailout Is Really a Bailout, and You Are Paying for ItMar 14, 2023 - 11:39:48 PDT
Silicon Valley Bank (SVB) failed on Friday and was shut down by regulators. It was the second-largest failure in US history and the first since the global financial crisis. Almost immediately, the calls for bailouts started to come in.
. . . Prior to the recent asset declines all US banks had positive bank capitalization. However, after the recent decrease in value of bank assets, 2,315 banks accounting for $11 trillion of aggregate assets have negative capitalization. This calculation underscores that recent declines in bank asset values significantly decreased bank capitalization and bank insolvency risk.
Credit Suisse Shares Fall to All-Time Low: Wall Street Expert Predicted It Would Be the Next to FallMar 14, 2023 - 08:28:05 PDT
Credit Suisse shares fell by 5 percent in early trading on Tuesday to an all-time low, hours after the bank revealed it had found 'material weaknesses' and recorded an $8billion loss in its 2022 annual report.
Moody’s Cuts Outlook on U.S. Banking System to Negative, Citing ‘Rapidly Deteriorating Operating EnvMar 14, 2023 - 08:03:44 PDT
In a harsh blow to an already-reeling sector, Moody's Investors Service on Monday cut its view on the entire banking system to negative from stable.
My guess is that we will now see the Great Unwinding of the great Fictitious Capital boom of 2008-2015. So the chickens are coming hope to roost – with the “chicken” being, perhaps, the elephantine overhang of derivatives fueled by the post-2008 loosening of financial regulation and risk analysis.
Mar 14, 2023 - 07:16:31 PDT
"The ESG industry shows no signs of slowing down, and initiatives seem to be ramping up on a global scale. As such, it is worth considering how we got here, who is in charge, and what lies ahead." ~ Kimberlee Josephson
Growth of the grid almost always means higher prices for utility customers, but what happens when those higher electricity prices are accompanied by increasingly degraded service levels?
America’s $620 Billion Ticking Time Bomb: FDIC Reveals Extraordinary Amount of ‘Unrealized LossesMar 14, 2023 - 07:13:47 PDT
Martin Gruenberg, chair of the Federal Deposit Insurance Corporation (FDIC), warned four days before Silicon Valley Bank's collapse that there was a ticking time bomb inside many banks.
Now, banks do fail from time to time. But these circumstances are eerily similar to 2008… though the reality is much worse. I’ll explain:
A sign of things to come as debt deflation takes hold. All of a sudden, banks are in the spotlight. The collapse of Silvergate, the crypto bank, has coincided with a good-old fashioned bank run on Silicon Valley bank (SVB). T
As Statista's Katharina Buchholz reports, after a period of progress and decline, the U.S. homeless population has increased slightly in 2020 and 2022, according to a report from the Department of Housing and Urban Development. The 2021 numbers were affected by shelters lowering capacity due to the Covid-19 pandemic during the count that takes places in the first month(s) of every year.
"Much like the contrived economic arguments behind the wealth tax, its legal arguments are a result of politically motivated reasoning to bring about a new tax system that the Constitution prohibits." ~ Phillip W. Magness