Hundreds of US Banks Face Collapse (As They Have Derivatives Loss Leaders on Their Books)

Hundreds of US Banks Face Potential Collapse

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A recent study on the health of the banking sector concluded that hundreds of American banks face a potential collapse similar to what happened with Silicon Valley Bank.

RT:

Nearly 200 American banks face similar risks to those that led to the implosion and bankruptcy of Silicon Valley Bank (SVB), according to a paper posted this week to the Social Science Research Network. SVB, a major US lender focused on the tech and startup sectors, was shut down by regulators last week after massive deposit outflows.

In the study, four economists from prominent US universities estimated how much market value the assets held by US banks have lost due to recent interest rate hikes.

“From March 07, 2022, to March 6, 2023, the federal funds rate rose sharply from 0.08% to 4.57%, and this increase was accompanied by quantitative tightening. As a result, long-dated assets similar to those held on bank balance sheets experienced significant value declines during the same period,” they wrote.

Although higher interest rates can benefit banks by allowing them to lend at a higher rate, many US banks have parked a significant portion of their excess cash in US Treasuries. This was done when interest rates were at near-zero levels. The value of these bonds has now greatly decreased due to the rate hikes – investors can now simply purchase newly issued bonds that offer a higher interest rate. The decline in the banks’ portfolios is unrealized, meaning the value of the securities has declined but the loss is still only ‘on paper’.

Silicon Valley Bank collapsed in part because they had a significant portion of their funds in US Treasuries which lost value as the Federal Reserve has jacked up interest rates. This caused a loss of confidence in the bank’s solvency resulting in depositors making a run on the bank. The common thought among these assholes who run banks is that US Treasuries are the safest investment possible. This is of course a total lie as SVB proved, but this is why so many banks are in trouble now.

The Jews are going to try and use this crisis to consolidate the banking sector into a few large mega banks while they try to implement some sort of digital currency that will track everything you do. I don’t believe they’ll be able to do it though. This whole thing is a house of cards. There are too many holes for them to plug.

Part of the reason why they might be pushing to arrest Donald Trump is that it serves as a convenient distraction from a banking system that is going to be in extreme turmoil next week. I can’t pretend to guess what will happen with all of this, but I would not want the majority of my savings in any of these banks. You want to be out of the system as all this plays out. This means, gold, silver, bitcoin and any other tangible assets.

https://www.businessinsider.com/9-banks-combine-for-over-200-trillion-derivatives-exposure-2012-4

Warren Buffett May Have Been Asked to Save Regional Banks

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It is clear that the United States government has no coherent plan to deal with the ongoing banking crisis. It looks as if they may have asked Warren Buffett to step in to try and figure out something.

 

 

This does not inspire confidence. It reinforces my belief that the system is in serious trouble.

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