even if a full-blown crisis has been averted. Banks will be forced to raise deposit rates and that will cloud the sector’s earnings outlook and the regulatory backdrop is certainly going to become more stringent.
Silicon Valley Bank is more problematic in the sense that this was not some marginal financial institution. It was the sixteenth largest bank in the United States, it had been around for 40 years, and it was the lifeblood for helping fund high-tech startups. This is akin to the failure of Washington Mutual in July 2008 — on that scale. Or perhaps IndyMac at around the same time.
If there is a silver line in the clouds, it is that JP Morgan , Citigroup and Wells Fargo all saw their share prices hang in. So, this is an assuring sign that the big banks will be just fine, and why shouldn’t they since they have a well diversified business , are well managed for the most part, have become much more regulated since the Global Financial Crisis and, most importantly, they have liquidity.
If anything, this resembles the bubble of the day in the late 1980s which was the LBO craze that engulfed the commercial real estate market and started with the failure of Lincoln Savings and Loan in 1989 — this didn’t affect the big money center banks but it brought down most of the S&L industry , and caused a four-year credit contraction that, again, coincided with recession and a muted recovery. That is the major point.
I guess this is one way of getting your attention away from the real J6 videos!
Why don't you post what's really happening? We are headed right for a total market collapse followed by a depression that will put the Great Depression to shame.
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