They’re coming after Regional Banks! Is your money safe?
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No, we told you there was going to be more of a fallout when it came to regional banks and we’re seeing that right now. Again, people ask the question, who’s going to make it? Who’s not going to make it? For many investors out there, it’s sell first, ask questions later. We talked about this several weeks ago here on the program. So a lot of these regional banks, their stock prices were down. Chris is it enough?
to get in and I’m like, no, no, it’s not an opportunity to get in because guess what? The problems are still there. The problems remain. Will some make it? Absolutely. Will I be able to, can I discern right now who that’s gonna be? No, no, but you’re gonna continue to have, we’re gonna have a wave of consolidations that are gonna be coming through. Western Alliance.
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They had a story that was reported today in the Financial Times talking about how they wanted to position themselves to sell themselves. They refuted the article and threatening to sue the Financial Times. So you’re dealing with this as well. There’s a lot of money to be made when stocks go up, but there’s also a hell of a lot of money to be made when stocks go down. And many of these short sellers out there, they have their connects.
in many places and they have no trouble whatsoever basically pushing stocks to the downside if they’re looking to short. It’s the nature of the beast, people. And again, you have no control over things like this. So quite frankly, which is again, we don’t play in this world in this realm because of this type of action that again can push these banks down.
major bear run taking place. Many of these fund managers, private equity guys, they can get together and they can drive stocks in a certain direction if the conditions present themselves and they most certainly are. Majority of Americans right now are not confident in their deposits in banks. After Silicon Valley Bank and what they did there, and again, this is part of the problem. We talked about this. It almost gives some sort of
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of implicit guarantee that the government is going to step in and bail out depositors of any size in any bank. At this point in time, how couldn’t they? They did it with Silicon Valley Bank, and we all know their clientele, these super wealthy people. How are they going to, you know, if another small lender goes under that, you know, doesn’t have that type of clientele, you’re going to just say, screw them? Do you think that that’s going to fly?
politically Again, these big banks out there are gonna have to have Some sort of decision with the smaller ones. We’re gonna have to do something when it comes to the FDIC And trying to recoup the money that’s already been paid out in regards to I’m getting more confused. You get Silicon Valley Bank. You got Oh First Republic. Holy schnikes So many of them at this point in time
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You’re going to continue to see liquidations people you are. And again, I want to put this into perspective. Okay, everybody, everybody remembers 2008 2009. The the collective banking collapse from this year is bigger, bigger than the banking collapse of 2008. 2008 saw the peak in terms of asset brink for bank failures $373 billion.
25 failures, 2010, so the peak number of banks failing at 157, 157 in 2010. So far in 2023, banks have failed. Banks have failed with combined assets of $548.5 billion.
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Okay, eight more months to go before this year’s done and many banks currently are teetering on the brink of disaster. Executives at those banks are telling us not to worry, but of course executives are. First Republic were issuing similar assurances last week. Again, there was rumor out there that First Republic had enough reserves to keep the money flowing for months, but it was all a lie, all a lie.
And we’re gonna, again, we’re gonna continue to see more of this. We’re gonna continue to see more of this. And I’m on that flip side. I don’t think it’s necessarily a bad thing. That the need to cleanse the rot from the system, I think is important. I would rather have them do this to try to rehabilitate these banksters that have got it wrong and then send them somewhere else. Because then again, the problem’s just gonna start there sooner rather than later.
And why do that? Why do that? It just, it doesn’t make any sense whatsoever. Again, this whole banking collapse, regional bank, it’s not the end of the world. I’m seeing articles talking about the end of the financial system here in the United States. No, it’s not. It’s not the end of the financial system here in the United States. It’s not going to happen.
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So again, be cautious, but be smart when it comes to your caution. Don’t be a zealot, if you will. The world’s gonna only end one time, my friends. Only one time, that’s it. So you might not wanna bet on that. Anyway, Watchdog on wallstreet.com.
