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The Atlantis Report, 12/9/23
"The Massive Banking Crisis We've
Been Hearing About Just Started…"
"People are withdrawing money from smaller banks due to branch closures and digital banking trends. The recent closure of 64 bank branches in the United States in the last few days demonstrates the panic among them trying to retain deposits. Provident National Bank has closed 203 branches this year and JP Morgan Chase is closing 18 which indicates a widespread trend. There is a possibility of a chain reaction of bank implosions while they are actively trying to hold on to as much cash as possible. Banks are crucial for holding up the economy in the United States. The depositors have essentially become investors and if the bank faces trouble, people will have to face implications. The Federal Deposit Insurance Corporation is a safety net but the process of retrieving insured money is difficult. Moreover, China's shadow banking sector is facing investigations about its involvement in troubled investments and its property sector is undergoing ripple effects. Issues in China's property market raise concerns about insolvencies and contagion risk in the global financial network. The global economy, particularly regarding dollar denominated bonds, is impacted by China's property market troubles.
The Federal Reserve is taking emergency actions to support struggling banks. Goldman Sachs and JP Morgan Chase have a significant percentage of deposits uninsured by the Federal Deposit Insurance Corporation which is raising concerns about losses in the event of a downturn. This lack of insurance coverage will pose additional risks especially in the context of a liquidity crisis. The US needs to address the deficit to avoid a snowballing crisis."
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