by AugustusInBlood
Bulls, the very last thing you must do in a financial institution run is elevate brief time period rates of interest to generate profits markets extra engaging than deposits.
It is no coincidence that SVB imploded when the Fed turned extra hawkish. pic.twitter.com/2llfZODa6O
— Mac10 (@SuburbanDrone) March 22, 2023
Capitol One credit score default swaps surging pic.twitter.com/1UertUTbfB
— Don Johnson (@DonMiami3) March 22, 2023
Easy query for folks claiming the worst is over.
Are you able to identify a single bull market that started with financial institution failures? t.co/7SEJQl8IDb
— Financelot (@FinanceLancelot) March 22, 2023
Will SVB and its aftermath push the US into recession? Optimistic view: US financial institution credit score is not massive, so – even when there is a credit score crunch – it will not do a lot. Pessimistic view: US credit score in % GDP is identical as Turkey, the place the credit score impulse has pushed every little thing for a few years… pic.twitter.com/iIxMwELJxi
— Robin Brooks (@RobinBrooksIIF) March 21, 2023
Biden Treasury Secretary Janet Yellen declares “the financial system is doing effectively.”
She does not point out inflation at 6% (1.4% when Biden took workplace), fuel costs at $3.43/gal ($2.39/gal when Biden took workplace), or that actual wages have fallen on the quickest tempo in 40 years. pic.twitter.com/9QuCgh0yFm
— RNC Analysis (@RNCResearch) March 21, 2023
Jim Cramer:
“If You Quick The Nasdaq, Invite Me To Your Funeral”t.co/jfU9Dyew7SIf belief Cramer your funeral will arrive just a few a long time sooner. pic.twitter.com/aKix9MzvNY
— Mac10 (@SuburbanDrone) March 22, 2023
Bank Crisis Survivors Remember How Fast Dominoes Can Fall
Steve Chiavarone doesn’t wish to scare anybody, however what he remembers most from the final banking disaster was how positive most individuals had been that it wouldn’t occur.
At his New York workplace in early 2008, Wall Road’s greatest and brightest — “strategist after strategist after strategist after strategist,” remembers Chiavarone, now senior portfolio supervisor at Federated Hermes — paraded by to say that even when a recession hit, it’d be shallow and brief.
That’s not, after all, how issues performed out. Just a few months later, “you’d go to your workplace every single day and one thing that you just by no means thought would occur would occur,” he mentioned.
All types of crises have been predicted by monetary Cassandras within the aftermath of 2008. In actuality, they’re exceedingly uncommon in markets. And but, with three US banks down, a fourth teetering and the government-brokered acquisition of a fifth — and far bigger — establishment in Europe, the comparisons to that episode have grow to be a bit more durable to disregard.
Worry is within the air. In current days now we have seen a degree of panic that now we have not witnessed since 2008, and in such an surroundings folks simply wish to be sure that their cash is protected. However there are only a few locations in our monetary system which are really “protected” at this level. The cryptocurrency business has already skilled a fully disastrous crash, collapsing bond costs have blown a 620 billion greenback black gap in financial institution stability sheets, residential actual property costs have began to plummet, and now the most important business actual property disaster in all the historical past of the USA is looming. The excellent news is that inventory costs are holding regular for now, however that may solely final for thus lengthy. Similar to we witnessed in 2008, a significant banking disaster will inevitably hit the inventory market actually onerous.
I want that it wasn’t true, however with out the banks we don’t have an financial system.
And proper now we’re “in the midst of a nationwide banking crisis not seen since The Great Recession”…
The Top 3 Reasons the US Has Entered the Inflation Death Spiral
