Hedge fund boss Bill Ackman today warned the 'economy will not function' without regional banks as trading was halted in dozens after shares shares tanked by 75 percent.
The billionaire urged the US government to reassure customers their money was safe and warned that 'hours matter' as contagion fears spread to the Big Four banks.
'Our economy will not function effectively without our community and regional banking system. Therefore, the Federal Deposit Insurance Corporation needs to explicitly guarantee all deposits now. Hours matter,' Ackman tweeted.
'We need to hear from our gov't that it is explicitly committed to preserving our system of smaller banks. While each small bank is not "systemically important" like @jpmorgan or @Citi , collectively they are as, if not more, systemically important.'
Regional bank Western Alliance saw its stock price plunge by three quarters as the opening bell sounded on Wall Street, while shares in First Republic dived 67 percent and PacWest by more than 35 percent. Trading circuit breakers were swiftly implemented to protect the market from rampant volatility.
The major banks were also hit with Wells Fargo plummeting 7.5 percent, Bank of America falling 7.4 percent, Citigroup plunging 5.8 percent and JP Morgan down 2.7 percent.
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20 Banks overnight... sounds like the Comptroller of Currency changed the assets to deposits ratio and those banks who were operating at the limits of the comptroller's definition of solvency got caught short and voila ... bankrupt. This practice is often arbitrary and pernicious... feeding larger more stale banks ready-made depositors and new accounts at a FRACTION of their actual market value...
In other words... the system is rigged and favors those banks with large banks and those with greater lead time... inside information on when the reserve ratios are about to change and the examiners are on the way... giving them time to pad their liquid assets and reserves.
And the fools keep saying our economy is strong what a bunch of idiots
In times of great financial stress, Banks can become insolvent n a matter of moments... all it takes is for the 'Office of the Comptroller of the Currency' to change the reserve ratios... between assets to deposits... and viola the Bank is insolvent. Many prominent banks operate at the limits of their required reserves which makes more profit but exposes them to serious risk of failure if the comptroller suddenly raises the asset-to-deposit ratios.. this is especially concerning during high rates of inflation, monetary easing, and increased interest rates. They all combine in the perfect storm to bring down even well-managed conservative banks.
The reserve ratios can be engineered to destabilize our economy while shorting the market makes billions for those in the know... Entire nations have been broken with such maneuvers... Argentina, England and now it appears we are next. It doesn't take a fundamental failure of banks management to end up failing.
I suspect this is being used by the WEF to force the US into accepting the Great Reset discussed in the recent Davos Conference...
For More On what to expect from the WEF See... Annual Meeting Davos 2023 | World Economic Forum (weforum.org)
So Ron what can be done to stop if from happening?
What can be done? Good question for which an answer may be very difficult to find.
The most expedient answer would be to 1) Recall the current US Government subject to new elections 2)Arrest the crooks behind the fraud and manipulation of our and the world's economy. 3) Drain the swamp 4) Institute term limits (one term, 6yrs, 1/3rd standing for election every 2yrs) for all elected and appointed government officials.
However, the suggested acts are very, very problematic... as many of the criminals to be removed are members of the government... some very high-ranking members.
What can be done by citizens now... 1) Return morality to the public square... reinstate God as the head of families and nations. Since that is not practical as an instant solution... We can pray and look for God the Father to send us a Heavenly LEADER capable of removing the consequences of decades of DECEIT, DECEPTION, and criminal conduct created to enrich a few.... too, send us Jesus Christ as He alone can fix the underlying problems of this world and mankind.
Read your Bible folks this is predicted. Even so come Lord Jesus!!!
Amen
This has the smell of digital banking to me.
Exactly... coerced capitulation to a new world order ... directed by a central bank's digital currency, a command economy, one world government based on communist ideology, and a social credit system to manage human behavior.
Thank you demented Joe Biden. The banking crisis is all your fault.