Bank runs are contagious

Pacific West Bank had to change the frontpage of its website to clarify that it has no relation to PacWest Bancorp, which is down 44% today.

We live in a simulation. pic.twitter.com/omekxBlqgm

— Genevieve Roch-Decter, CFA (@GRDecter) May 4, 2023

*MONEY MARKET HOLDINGS HIT RECORD $5.31T IN WEEK ENDED MAY 3:ICI

Up $47BN in one week, up $100BN in two weeks… the bank run is accelerating pic.twitter.com/t7kuYEF6nz

— zerohedge (@zerohedge) May 4, 2023

Wow.

The bond market is now pricing a 15.49% chance of a rate CUT at the June meeting.

This is a major change in only a few days 👇 pic.twitter.com/MWIUQBJoZ7

— Cheddar Flow (@CheddarFlow) May 4, 2023

Sagar Singh

The Fed’s Difficult Position Is Its Own Fault

Recessions don’t come out of the blue. They have a cause—malinvestment encouraged by central bank credit expansion. Artificially low interest rates send a false signal to investors and producers to start, or continue, producing things that either customers don’t actually want—at least not in the quantity now being produced—and/or are unable to be completed with available…

U.S. officials assessing possible ‘manipulation’ on banking shares – source

Here we are again, 2008 on repeat. Predatory short sellers found weakness in the banking sector and are exploiting that weakness for their personal gain.

Do the banks now get a special exemption to ban short selling on their stocks like they did in 2008?

First Republic's takeover worsens the 'too big to fail' bank problem, and taxpayers will be on the hook, Elizabeth Warren has said.

— unusual_whales (@unusual_whales) May 4, 2023