The middle class is getting attacked on both flanks. Its wealth falls along with house prices. And its real income falls as consumer prices rise. Adjusted for inflation, wages have fallen for 23 months in a row; for nearly two years, ordinary households have gotten poorer.
What caused the collapse of the Silicon Valley Bank? Turns out, one of the best explanations came from the Federal Deposit Insurance Corporation…four days before the collapse! And what happens now? Read on for that info, as well as where to search for opportunity in this turbulent, fearful time in markets.
The second largest…and third largest…bank failures in US history continue to dominate the financial headlines. From CNN Business: ‘Dow falls 500 points as banking fears spread’.
Banks are sitting on vast unrealised losses on their bond portfolios thanks to central bankers raising interest rates. This only matters when they get into trouble and are forced to actually sell those bonds. Do you want to bet they won’t have to?
Will Credit Suisse be next? Will it push investors and the Fed into a panic? Will the Fed publicly reverse course and begin cutting rates?
It’s 2008 all over again…except bigger, badder, and bound to be more destructive! While the subprime crisis in 2007–09 showed the financial system can collapse from the cascading effect of bank collapses, governments worldwide threw billions into keeping some of them alive. It’s this stupidity that brought us here today. What’s more pressing is how you can ride above this. It’s more important that your boat is afloat before you delve into the story of what’s going on. Read on, as I’ve got an opportunity for you!
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