Meltdown Update

Carnage continues to spread throughout the financial world. Credit Suisse was six times the size of Silicon Valley.  It’s done. First Republic got $30 billion, but that’s not enough. Credit Suisse Last week, I mentioned that Credit Suisse was under attack. That may have seemed out of place, considering I was talking about How To…

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How To Control All US Banks

Here’s a great way to seize the entire banking system.  (Don’t try this at home.) You’ll know soon if this is in operation.  You’ll see more banks collapse. As of this writing, Credit Suisse is now under attack. NOTE:  May 14 – Moody’s cut its ranking for the entire U.S. banking system from stable to…

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Inflated Expectations

The Federal Deposit insurance Corporation (FDIC) “protects your money in the unlikely event of a bank failure.  The standard insurance amount is $250,000 per depositor, per insured bank…” In the case of Silicon Valley Bank, 97% of all deposits (by value) were uninsured. These were deposits beyond the $250,000 cap. That Just Changed In a joint…

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Toxic Treasuries

Before it failed, Silicon Valley Bank had lots of cash and a low ratio of outstanding loans. Their fatal mistake:  They parked the majority of their money in US Government Bonds. (You know, the safest, most risk-free asset in the world.) SVB put $119.9 billion into low-interest, long term government bonds, like 10-year Treasury notes.…

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