March 11, 2023
Fasten your money belt — it's going to be an extremely bumpy few years
By Ethel C. Fenig
Yesterday, along with many, many others, I mentioned a major financial concern:
The problems of two small banks on the West Coast are rippling across markets and causing new investor concerns about some of the country’s largest financial institutions.
Why? Three words: rising interest rates.
The Federal Reserve’s aggressive campaign to bring down inflation helped set the stage for major problems at two California lending institutions — SVB Financial (SIVB) and Silvergate Capital (SI) — as an outflow of deposits forced both to sell assets at a loss. Those assets were bonds.
BOOM! BOOM! POW! Friday it happened: Silicon Valley Bank (SVB), the U.S.'s 16th largest according to the Federal Reserve, collapsed — the second largest failure in U.S. banking history.
more
https://www.americanthinker.com/blog/2023/03/fasten_your_money_belt_its_going_to_be_an_extremely_bumpy_few_years.html
