As always in all crises of the financial system in recent decades in the U.S.: The problem is also in this case with money printing under the table.
Perhaps one should take a look at the following picture. What do you see there? In private life, this is called insolvent and your business would be closed immediately .
Symple
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Banks et al are derailing from time to time. And disappear when they cheat client and state.
Example - 2008 many banks went bankrupt or nearly so.
Switzerland 2008: UBS had to been saved by the government.
Switzerland 2023: Credit Suisse is in the same scheme.
US 2023: 3 banks went out of business
Coin department 2023: many coins are no longer in the markets
Means: BIG BIG losses for investors, bank clients, tax payers, continuation of the markets - you name it. Even the 'non investor' will be punished!
The devil sits in the seat and forces people to to take decision in the moment of indecision.
At this moment we are just @ the start of collapsing banks, institutes, brokers, derivatives, currencies international, gold dealers etc.
To compact it into one word: COLLAPSE
This cleaning of markets in every sense - be it banks, currencies, crypto's etc. - is very necessary. It takes quite a time until it is done. We as traders need to take all this into consideration.
GFIs1
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The normal trader as well as the investors that were counting on the 'proof of the pudding' those bankers were spreading in all channels.
So what should be done then?
In the good case, shareholders receive dividends, but in the bad case, it is not they who are responsible, but the public purse.
The free culture at the expense of the general public goes even further. Shareholders of systemically important banks have only rights, but zero obligations. In the good case, they receive dividends, but in the bad case, it is not them but the public that is responsible. The introduction of an obligation to make additional contributions would solve this problem. This would mean that the shareholders of systemically important banks would be obliged to increase the company's capital proportionately in emergencies or to be liable for losses incurred.
Another measure on the way to a healthier banking system are strict requirements for salaries and bonuses of top managers. The absurdly high bonuses in particular provide them with an incentive for mismanagement, poor controls, nonsensical restructuring, risky acquisitions and sales and, in the worst case, illegal machinations. It does not have to be a total ban on bonuses, as the political left demands. But a cap on wages and bonuses at systemically important banks is the very least.
So the answer is: STOP all those loudspeakers from the Banks! NOW
Personally don't think this is going to be 2008 repeat.
But I do feel this could be quite a dent in economics of how banking system works.
By in large, average consumer will suffer, small industries will go bankrupt. All because they had too much faith in the system to work properly.
On an average, number of banks failing per year have gone down significantly after 2011 compared to before, but the kind of social media reach we have right now was not there back then, so we are at more risk of this spreading like a virus.
But its also not right to blame this on social media/bad press, core reason of this failure is greedy bankers, misplaced bets, breach of average investor trust and blatantly scammy inner workings of banks.
Restrictions need to be in place, we need to watch them more closely. Individuals need to be punished for playing ball with ppls hard earned money.
On a much smaller scale if an individual did this similar operation, then he would be in federal jail for financial crimes for decades.
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Like him or don't like him but Charlie Gasparino has a lot of key senior financial contacts on Wall Street. His comments below:
"The problem is pretty obvious if you can read a balance sheet. Top financial executives have privately identified as many as 25 regional and mid-sized banks in the neighborhood of $15 billion to $200 billion in assets that are ripe for failure. The ill-fated Silicon Valley, Signature banks, and today’s latest headache, First Republic, are the festering sores that signal an even greater degree of banking rot.
On one hand, 25 mid-sized bank debacles sounds better than the vast 2008 financial collapse that began with Lehman Brothers bankruptcy and spread to our biggest banks and Wall Street firms.
It also sounds better than the scare number recently circulating – that nearly 200 banks are in danger of imploding. But not so much when you start adding up the assets and deposits that might be lost by the so-called “dirty two-dozen.” "
"The bankers I speak to aren’t sugarcoating anything and they are starting to panic. They’re looking at balance sheets, and throughout much of regional banking, they see the risky loans, the asset-liability mismatches that doomed SBV, Signature, and possibly First Republic. "
Hi everyone HarveyS here.
Can anyone please enlighten me as to the reason why all these very savvy intelligent banks and pension funds would invest funds in government 10,20 and 30 year bonds at zero interest rates,when even blind Freddy new that interest rates had only one way to go after reaching zero.This absolutely guaranteed that all these investments were guaranteed to be anything but safe.Who in their right mind would loan their money to someone for 30 years for nothing in return?These are the people who are in charge of the world.It doesn’t send a very good message to the average investor.So buckle up as I feel we are in for a very shaky ride,until we get more able and responsible people running the show.This is just my take on our world at this point in time.Am I being to critical.What are your thoughts?
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