by Michael
It must have been apparent to everyone that the dark clouds on the horizon would bring a storm, and now rain is furiously falling throughout us. Our entire system is being viciously shaken, and the dominoes are going to proceed to fall within the months ahead. Once Silicon Valley Bank and Signature Bank went down, all of us knew that it was only a matter of time before more large banks began to implode. Now First Republic has failed, and over the weekend U.S. regulators were working very hard to rearrange a sale…
U.S. regulators have been attempting to clinch a sale of First Republic over the weekend, with roughly half a dozen banks bidding, sources said on Saturday, in what’s more likely to be the third major U.S. bank to fail in two months. Guggenheim Securities is advising the FDIC, two sources accustomed to the matter said on Saturday.
As a I write this text, that also hasn’t happened yet.
Nevertheless it could occur at any moment.
When a sale is finally announced, the FDIC can also be expected to inform us that it has seized First Republic…
The Federal Deposit Insurance Corp is anticipated to announce a deal on Sunday night before Asian markets open, with the regulator more likely to say at the identical time that it had seized the lender, three sources previously told Reuters.
They try to time every thing in order that as little panic as possible is created.
But I feel really badly for people who owned First Republic stock.
It was going for about 120 dollars a share originally of March, and once the bank is seized by federal regulators it’ll almost actually be worthless.
That’s how briskly this stuff can occur.
More dominoes will fall throughout the remaining of 2023, and also you don’t wish to be caught holding the bag.
So do what it is advisable do when you still have time.
When the Federal Reserve decided to go nuts with their rate hikes, all of us knew that this is able to put enormous pressure on the banks, and that’s precisely what has happened.
We also knew that higher rates would crush the housing market, and last month pending home sales dropped far more than expected…
March is with each feet within the spring selling season, when home sales jump and when prices move higher, and where every thing looks rosy for a number of months, irrespective of what, after the dreariness of winter.
So, well then, here we go again. Pending home sales – that are “a forward-looking indicator of home sales based on contract signings” – fell by 5.2% in March from February, in accordance with the National Association of Realtors today, thereby annihilating the little-bitty gain in February that had sent all of the headlines abuzz with hype.
Should you need to sell a house, I might recommend doing it quickly, because prices are more likely to go quite a bit lower from here.
Meanwhile, big corporations are shedding employees everywhere in the country at a really frightening rate. The truth is, we just learned that Jenny Craig is on the brink of conduct “mass layoffs” because it prepares to wind down operations…
Jenny Craig has alerted employees to potential mass layoffs because it begins “winding down physical operations” and hunts for a buyer, in accordance with communications the weight-loss company sent some staffers this week.
The corporate said it “has been going through a sales process for the last couple of months,” in accordance with a document titled “Jenny Craig Company Transition FAQs” that was dated Tuesday and provided to NBC News.
I don’t know why, but I’m sad to see Jenny Craig go.
Perhaps it is due to all of the Jenny Craig commercials that I watched after I was younger.
Joe Biden keeps telling us that the economy is doing great, but we just keep seeing one large company after one other go belly up…
For 2009 there have been 118 bankruptcies through April. In Covid-impacted 2020, there have been 71 bankruptcies. In 2023 there have been 70.
That is the third worst begin to the yr since 2000.
This didn’t should occur.
If our leaders had not flooded the system with money, inflation never would have gotten uncontrolled.
And if inflation had never gotten uncontrolled, officials on the Fed never would have needed to recklessly hike rates of interest.
Sadly, we’ve an actual nightmare on our hands at this point, and there isn’t a turning back now.
Not too way back, a prankster that was impersonating Ukrainian President Volodymyr Zelensky was in a position to completely idiot Federal Reserve Chairman Jerome Powell during a video chat.
During their discussion, Powell openly admitted that raising rates could push the U.S. economy right into a recession…
Federal Reserve Chairman Jerome Powell earlier this yr held a video chat in regards to the global economy with someone he thought was Ukrainian President Volodymyr Zelensky. Except it wasn’t Zelensky. Powell appears to have been pranked.
In clips posted online of the January conversation, Powell discussed global politics and the economy. He said he supported the Ukrainian people but was limited in ways he could help. And Powell said a recession was likely coming within the not-too-distant future and divulged the Fed’s plans to boost rates in 2023.
Powell also admitted that more rate hikes are planned though he knows that they’ll cause much more pain.
And really the Federal Reserve is anticipated to boost rates one other 25 basis points later this week.
It is completely suicidal to maintain raising rates because the economy plunges into a serious downturn, but they’re doing it anyway.
Have they gone completely mad?
It is sort of as in the event that they are purposely attempting to create the type of economic horror show that I even have been relentlessly warning about.
If officials on the Fed had any sense, they’d be reducing rates as soon as possible.
Unfortunately, that is solely not going to occur, and so we’ll soon see many more dominoes start tumbling over.