Shortcomings in the so-called "living wills" of JPMorgan, Bank of America, Goldman Sachs Group, and Citigroup.
Bank Runs Imminent. Pull your money out of the Bank Today!
There is something "amiss" in the U.S. banking sector, says Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com, warning that big institutional players are "unloading" the stocks of big banks.
"I'm hearing a lot of chatter about the big banks unloading bad debt right now, trying to get ahead of some sort of crisis looming," Soloway tells Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "Because interest rates are so high, the amount of losses in mortgage-backed securities potentially rival what we saw in 2008 and 2009. In addition, the commercial real estate market is in tatters. And these are all things that banks are holding on their balance sheets."
Soloway points to the SPDR S&P Regional Banking ETF (KRE), noting the formation of a bear flag pattern since the banking crisis lows of April last year.
There has also been a technical breakdown in the stocks of some of the bigger banks, including JPMorgan, according to Soloway.
"This trend line breakdown just started on JPMorgan, Citigroup has already broken down," Soloway added. "There are signs that something is amiss within the banking system, whether it's the bear flag in the KRE or in these bigger banks. There are some bigger players that are unloading the big banks here."
Federal Reserve Chair Jerome Powell commented on the banking sector at the June press conference following the central bank's two-day monetary policy meeting.
"The banking system has been solid, strong, well-capitalized lending. We've seen good performance by the banks. We had turmoil early last year, but banks have been focusing on bringing up their liquidity, bringing up their capital, and having risk management plans in place. So, the banking system seems to be in good shape," Powell said.
Soloway reacted to Powell's comment by pointing out that the Fed Chair would never come out and say there is a big issue in the banking system. "Think about the fire that would spread in the market crash that would ensue if he said that," Soloway noted.
Soloway's warning comes as the New York Fed's Liberty Street Economics blog cautioned of U.S. big banks facing growing spillover risks from non-banks.
During periods of increased market volatility, liquidity demand accelerates, putting pressure on banks as non-banks look for loans and lines of credit. This could trigger "vectors of shock transmission and amplification, forcing authorities to intervene and do so en masse," the post said, adding that the disruptions "could be rather severe."
At the same time, the Federal Reserve pointed to weaknesses in four of the biggest banks on Wall Street regarding how they would handle their own failures.
According to a joint statement released Friday by the U.S. central bank and the Federal Deposit Insurance Corporation, the regulators spotted shortcomings in the so-called "living wills" of JPMorgan, Bank of America, Goldman Sachs Group, and Citigroup.
"For the four banks with an identified shortcoming, the letters describe the specific weaknesses resulting in the shortcoming and the remedial actions required by the agencies," the agencies said.
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Stack Silver and Gold to protect Yourself
The US is in a recession and the US leadership is in full on theft mode.
We established over past 3 years of reporting how much theft is happening through insider trading on war stocks, energy stocks and other laundering schemes overseas.
The villagers inside the USA are facing increasing state of desperation.
It is clear that a significant portion of Americans are struggling to afford basic necessities and emergency expenses:
Nearly 40% of Americans struggle to pay for basic needs like housing and food.
68% of Americans couldn't cover their living expenses for even a month if they lost their job.
57% of Americans cannot afford a $1,000 emergency expense.
Inflation has forced many Americans to spend significantly more just to maintain the same standard of living as before - an extra $11,400 per year on average according to one analysis.
Lower and middle-income households are especially strained, as they spend a larger portion of their income on essentials like food which have seen steep price increases.
63 Banks are teetering on insolvency
There are about 34 trillion in total US citizen bank deposits.
As of the first quarter of 2024, the Federal Deposit Insurance Corporation's (FDIC) Deposit Insurance Fund (DIF) stood at $125.3 billion.
125 billion goes into 34 trillion 272 times.
125 billion is approximately 0.3676% of 34 trillion
This means if you have $1,000 in the bank 0.367% of 1000 dollars is $3.67
You would recover $3.67 for every $1,000 you have deposited
Meanwhile a record 1.7 trillion dollars in Commercial Real estate loans are maturing in next 18 months
Most cities are facing record vacancies because of the Covid War (people can zoom and work from home)
Retail is getting crushed by shoplifting and consolidation, just like “ma and pa” retail got crushed by Walmart and Target.
People use Amazon for everyday items because when you go to Walmart for a razor, condom, ointment for cold-sore or anything over 9 dollars it is under lock and key
Unrealized bank losses are spiking to uncharted territory.
Gangs of kids will “carjack” a truck or SUV and use the vehicle as a battering ram while dozens of kids clear out inventory inside jewelry stores or Apple stores
The Chicago Purchasing Managers' Index (PMI), also known as the Chicago Business Barometer, is a monthly economic indicator that measures the health of the manufacturing and non-manufacturing sectors in the Chicago area. It's based on a survey of purchasing managers in the area who are asked about factors like new orders, production levels, employment, inventories, and delivery times.
The Only Thing Backing the Dollar
The United States operates a vast global network of military installations, with bases and facilities located in dozens of countries across every continent. Here are the key details about the extent of US military bases around the world:
The US has approximately 815 military bases in at least 80 countries worldwide, according to data from researchers. However, the exact number is difficult to pinpoint as not all information is publicly released by the Pentagon.
The countries with the highest number of US military bases are Japan (120 bases), Germany (119 bases), and South Korea (73 bases).
Other nations with a significant US military presence include Italy (36 bases), Kuwait (13 bases), the United Kingdom (26 bases), and Turkey (12 bases).
The US has around 173,000 troops deployed across 159 countries as of 2020.
The largest US military base in terms of personnel is Ramstein Air Base in Germany, with almost 9,200 active-duty personnel.
In the Middle East, the US has a substantial military footprint with over 30,000 troops stationed across multiple facilities in countries like Iraq, Syria, Kuwait, Qatar, and others.
The US also maintains military bases and facilities in regions like Latin America (e.g., Guantanamo Bay in Cuba), Africa (e.g., drone bases in Niger), and the Pacific (e.g., bases in Australia).
While the initial justification for many overseas bases was to counter the Soviet Union during the Cold War, the US has maintained and expanded its global military presence even after the Cold War ended.
And now USA is blaming Saudi Arabia for 9-11 (Wait I thought we already invaded Iraq and Afghanistan under the “war on terror” excuse, guess you can recycle excuses too since the American public believes everything on TV
The Best Way to Fight Back is Stack Silver and Gold
When Purchasing Real Estate is Not an Option, Where Do You Turn?
Millennials and GenZ are shut out of the housing market.
This happened recently in China (real estate purchasing unfeasible)
You still want to get your hands on tangible assets.
Steps
1. Convert your Federal Reserve Notes (printed money not backed by anything) to Silver and Gold. So you are not buying Silver; you're simply trading paper for real money!
2. Start with Silver, Friday it was smashed so buy Silver this weekend at LCS or we recommend Miles Franklin, Money Metals and SD Bullion.
3 Gold will hit $3,000 this year.
4. Gold to Silver Ratio will hit 60 within a year (most likely). There are reputable precious metals analysts suggesting the Gold to Silver Ratio to go as low as 15 which would place silver at $200 per ounce
5. We are forecasting our Silver target at $50 within a year.