since the global financial crisis ended, fears of a fresh crisis are in the air. . Silicon Valley Bank , a mid-sized lender based in California, failed on March 10th after depositors withdrew $42bn of cash—one quarter of its total—in one day. Two other mid-sized American banks have failed, too. The ripples have been felt in Europe. Credit Suisse, a 167-year-old institution with $400bn in deposits, wasBank shares in Europe are down by 14% over the past month, and in America they are 20% lower.
So far this time, in contrast with 15 years ago, the broader stockmarket has been relatively unruffled by the turmoil within banking. The“fear” index measures the volatility of the S&P 500, America’s leading share index, which rises as investors become jittery. A value above 30 is seen as bad news. The index peaked at 80 in September 2008 after Lehman Brothers, an investment bank, collapsed. Today theis at a relatively benign 22, which suggests that investors are so far keeping calm .
One further explanation for this could be expectations for what the Federal Reserve will do. It has already taken several steps to shore up the stability of the financial system, including through the introduction of a scheme that provides emergency lending to banks secured against their bond holdings. But investors are also now expecting that the Fed will raise interest rates by less than they had previously thought . Markets were pricing in between 0.25- and a 0.
That’s because it’s all rigged by market makers who can’t get out of their shitty positions
Looks like Trump's signature...
$VIX going +75
justwait itwill vix
FED is lying to people..Fed is letting banks collapse. The interest rate will rise again.. the fed will not be able to save the economy.. the economy and inflation will collapse
Things take time
You missed out that..'Silicon Valley Bank's monumental downfall is the second-largest bank collapse in U.S. history. ' Poor attempt at spin.
The fundamental problem with the svb was that they held government bonds, whose interest was miniscule, and then the fed, foolishly, pumped up the interest rate “to cure inflation,” when it was really to maintain the money of billionaires. The people be damned.
Fortunately, banks are not affected by the domino effect.
This isn't over.......
Similar, the situation become worse or better depend on the next process how to change.
now do it for bonds
No
Man, these are some DEDICATED musicians. The water is almost at the deck and they're still playing! unruffled
At present, more than 200 banks in the United States are at risk, and the crisis of Credit Suisse is the biggest. As the fifth bank in the world, if it fails, it will affect the finance of the whole world. The impact is nothing comparable
Would you say bearish sentiment is at an all time high? If so, is it justified?