Month: March 2023

US Banking System Outlook Downgraded to ‘Negative’… Fallout from U.S. Bank Failures Spreads Around the World

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Moody’s cuts outlook on U.S. banking system to negative, citing ‘rapidly deteriorating operating environment’ In a harsh blow to an already-reeling sector, Moody’s Investors Service cut its view on the entire banking system to negative from stable. The firm, part of the big three rating services, said Monday it was making the move in light … Read more

NYPD officers resigning at a record-breaking pace

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via dailymail: A record-high number of New York Police Department officers resigned in the first two months of 2023, startling new data shows. According to a new report, resignations among officers jumped 117 percent in January and February, already surpassing more than 230 resignations. The new numbers are up significantly from the same time frame … Read more

Silicon Valley Bank Collapse: Just how safe is the banking system? Matthew Piepenburg shares his views.

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By Matthew Piepenburg   Kitco News Interviews Matthew Piepenburg – SVB Collapse: We ain’t seen nothing yet! Bank runs, Fed policy and Gold. On Wednesday, March 8, 2023, Silicon Valley Bank (SVB) announced a $ 1.8B loss from the sale of investment securities. Investors and depositors got spooked, withdrawing an estimated $42B+ in cash within … Read more

Things could get wild … Again

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  The Federal Home Loans Banks sold 90B in bonds and treasuries to raise liquidity for commercial banks.  Banks flooded the Federal Home Loan Bank System with requests for up to $90 billion in billions in low-cost funding to shore up liquidity and avert a crisis due to a runoff of deposits. Demand for liquidity … Read more

The Empire Strikes Out! Empire State Conditions Declines To -24.6 For March As PPI Final Demand Cools To 4.6% As Fed Cools Rates

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by confoundedinterest17 The Federal Reserve and Biden Administration are like one massive gaffe machine. And with it, the Empire State manufacturing outlook plunged to -24.6. An inflation measure, PPI Final Demand YoY declined to 4.6%. While the Dow is down -1.36% today, European stocks are down -3 to -5%. Janet “Too low for too long” Yellen … Read more

Credit Suisse 5Y CDS exploded higher to 766bps, pricing in a probability of default of 47%, stock plunges 30%. The Saudis have said they won’t invest. Credit Suisse failure would be 5x SVB

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CS is about to not be fine Credit Suisse’s top shareholder rules out providing more financial assistance to the struggling Swiss bank, citing regulatory issues https://t.co/sqjJiRF6mF — Bloomberg (@business) March 15, 2023 Its’ Over For The Swiss Giant! You can’t miss what’s happening in Europe. Switzerland’s second-largest bank: Credit Suisse’s stock price continues to plunge … Read more

Payments of $5 million to every eligible Black adult, the elimination of personal debt and tax burdens, guaranteed annual incomes of at least $97

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via APNEWS: SAN FRANCISCO (AP) — Payments of $5 million to every eligible Black adult, the elimination of personal debt and tax burdens, guaranteed annual incomes of at least $97,000 for 250 years and homes in San Francisco for just $1 a family. These were some of the more than 100 recommendations made by a … Read more

Black Lives Matter Movement Has Recieved a Stunning $82 Billion From Corporations… $73M Donated by Silicon Valley Bank

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The list reveals that several popular corporations from a wide range of different industries supplied the movement with large sums of cash. Walmart, for example, which is based in Arkansas, gave a whopping $100 million in support of BLM and related causes focusing on “racial equity.” Amazon gave even more, supplying the movement with an … Read more

Get Woke Go Broke…then The Taxpayers Will Bail You Out

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From someone I know who worked at Signature Bank for several years: "The Management Team was basically like the show, the Office. They'd waste money on things like producing parody videos." — Genevieve Roch-Decter, CFA (@GRDecter) March 13, 2023 Yesterday, Signature Bank became the 3rd-largest bank failure in US history Signature had $88 billion in … Read more

Self-Censorship in America

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by Chris Black Fear of being “canceled” increases with education level, but only for Right-Wingers. The Democrat increase from high school to post-grad is a minuscule 2%, while Republican post-grads are 35% more likely to fear “cancelation” than Democrat post-grads. At the peak of McCarthyism, only 13.4% of Americans felt less free to “speak their … Read more

Shock Status: Imagined

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by Chris Black Just a coincidence I’m sure… According to a report by the Times of Israel, the country’s two largest banks were able to transfer $1 billion out of Silicon Valley Bank to accounts in Israel before it was seized by the feds. Tel Aviv shares drop as SVB failure triggers cash-flow concern for … Read more

Is It 2008 All Over Again?

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By Graham Summers, MBA A major bank just went under… contagion is dragging down other similar firms… the Fed is introducing emergency measures to bailout the system. Is it 2008 all over again? Yes and no. “Yes” in the sense that the Fed created a massive bubble in risk assets. Also “yes” in the sense … Read more

If SVB is insolvent, so is everyone else

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by Simon Black On Sunday afternoon, September 14, 2008, hundreds of employees of the financial giant Lehman Brothers walked into the bank’s headquarters at 745 Seventh Avenue in New York City to clear out their offices and desks. Lehman was hours away from declaring bankruptcy. And its collapse the next day triggered the worst economic … Read more