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"186 More Banks “Are At Risk Of Failure”,
And That Could Push Us Into The Next Great Depression"
by Epic Economist
"They are desperately trying to plug one leak in the system after another, but what happens if the entire system suddenly comes crashing down all around them? Back on January 4th, I specifically warned that our problems would “greatly accelerate over the next 12 months”, and that is precisely what has happened. We are now in the midst of the most severe banking crisis since 2008, and it could soon get a whole lot worse. We have already witnessed the second and third largest bank failures in the entire history of our nation, and now it is being reported that 186 more banks “are at risk of failure”…
On the heels of Silicon Valley Bank’s collapse earlier this month, 186 more banks are at risk of failure even if only half of their depositors decide to withdraw their funds, a new study has found.
The collapse this month of Silicon Valley Bank and Signature Bank prompted a flood of deposits out of regional lenders and into the nation’s largest banks, including JPMorgan Chase & Co. and Bank of America Corp. Customers spooked by the bank failures were taking refuge in firms seen as too big to fail.
If every bank account in America is suddenly fully guaranteed by the federal government, there will be a giant sucking sound as wealthy individuals pull their money out of European banks where large balances are not fully insured.
The European banking system is already teetering on the brink of collapse. In fact, we just learned that Switzerland’s biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month.
Our economy runs on mortgages, auto loans, credit cards and debit cards. If a bank gets into trouble, the flow of credit from that bank is restricted. And if a bank fails, the flow of credit from that bank completely stops. If lots of banks start going under in this country, economic activity will shrink substantially and we really will be facing “another great depression”. Hopefully a way can be found to stabilize the banking system, because economic conditions are certainly bad enough already."
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"We're so freakin' doomed!"
- The Mogambo Guru
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