We're All Pawns in an Enormous Financial Experiment

What is truly going on with banking, and what is B.S.?

Websites like ZeroHedge are "Interesting" but "Not Credible." They create click-bate, and you should always look to other sources for verification. While I link to their articles at times, I don't blindly trust them.

For the vast majority of us in the US, up to $250,000 in deposits is insured by the FDIC. Almost worst case, if the bank we do business with is taken over by banking regulators, we lose access to our funds for a couple of days, then life goes on as usual. Solution, have a couple extra days a spending cash on hand.

Where it gets dicey is, many companies and individuals live paycheck to paycheck, and if their bank closes down for a short period of time, they can't make mortgage payments or payroll. Several companies not being able to make payroll or process the payroll of other companies is where the SVB's collapse started to Domino through the financial world, and continues to.

Those with more than $250,000 in their bank accounts, have had a wake up call if they weren't insured against loss of that money, and they are moving these large sums of money around. This indirectly COULD affect everyone.

Worst case, we all run to the bank and remove, or attempt to remove, all of our money. This will cause a systemic system collapse. So don't do that. I waited a few days to get a few extra dollars, after the poo started hitting the fan a week or two ago, and have resisted the urge to get more cash.

In line with the post above, from November, this podcast was released today, explains what is going on.


THE WOLF STREET REPORT: Free Money Turned Brains to Mush. Now Some Banks Fail




This issue is separate from inflation and the Fed's interest rates, which have been rising. As Wolf and the above article state, many entities are addicted to free money, and we all are indirectly. They are trying to drive a return to free money, or benefit monetarily from such rumors.

The European Central Bank increased interest rates despite the banking turmoil, and this possibly/likely means the US Fed will do the same shortly, which while painful, hopefully suppresses inflation, which despite significant increases in take home pay, is even greater. Prices are increasing faster than people's take home pay.

 

To learn what is going on behind the scenes in the banking industry:

Update on the Fed’s Liquidity Support for Banks

 

https://www.advisorperspectives.com...lation-since-1872-a-long-term-look-at-the-cpi