Kobeissi argued that the latest Federal Reserve interest rate hike, confirmed as 0.25% on May 3, had added fuel to the fire.“The Fed rate hike is only making things worse.”
“Confidence in a financial institution is built over decades and destroyed in days,” Bill Ackman, CEO of hedge fund management firm Pershing Square,“As each domino falls, the next weakest bank begins to wobble. Until investors are rewarded for betting on a wobbling bank, there will be no bid, and the best sale is the last price. We are running out of time to fix this problem.”on the crisis, meanwhile, Marty Bent, founder of crypto media firm TFTC, described it as a point of no return.
“I find it hard to believe there is anything that can be done to restore confidence in the system. No amount of backstopping, money printing, buybacks, consolidation, or World Wars will be able to put this genie back in the bottle. The Fed and the Treasury will try their hardest to make the public believe otherwise, but this is simply too much all at once.