:cash: 😱 Bank Panic

Well, it’s about fifteen years since the last banking crisis. Silicon Valley Bank gone to the wall, while Credit Suisse had to be bought out after a bailout.

Is it all happening again?

Not sure

There will always be a couple of smaller banks that get themselves into the shit when the markets move (in this case global interest rates heading upward at a fast rate).

Credit Suisse was a basket case and dying a slow death (argueably UBS have got the deal of the century - $1tr in assets under management for a couple of billion) - even that wasn’t a bail out (at least not yet as it has been the bond holders that have taken the haircut and not the govt)

The bond holder issue could create longer term systemic problems. If you hold bonds in other banks and you have just watched the Swiss blow away the Credit Suisse investors away without blinking, you are going to think twice about lending and if you do, you are going to price it higher.

That could create a liquidity issue

My real fear is that the regulators have repeated the same mistakes and do not understand some of the financial instruments in play. The best place to be is being a partner at Goldman Sachs or JP morgan - it will be those sly fuckers who are the route cause of it all


IF you wanted to crash the world to reset it, crashing the banks would be one way to do it after you moved your wonga somewhere safe

1 Like

Nothing like a good conspiracy theory eh Phil :wink:

1 Like

And that was nothing like a…
Or is it?

1 Like


So interest rates go up in EU & US putting more pressure on Bond Values and bigger paper losses onto banks.

Lots of Jenga Towers out there

1 Like