Hey Frens,
As you might remember a short while ago I posted about Banks as we saw the Silicon Valley Bank meltdown amidst a rush of depositors taking their money out of the system at the speed of light. Many people have blamed Peter Thiel and VCs, blamed The Bank’s Executive Team, and written it off as a one-time thing. FDIC came in and said they would cover depositors to the tune of 25 Billion Dollars. A week later we’ve seen more Regional Banks fail and the problem has gone global. Credit Suisse was bought out at a major discount over the weekend by UBS and Central Banks coordinated an effort to”enhance U.S. Dollar liquidity..” Which by the way is the same thing they did in March 2020.
Deja-vu?
We now have a major crisis in confidence in the International Banking System and a massive rally in Bitcoin, Gold, and other Risk assets. Hardcore Bitcoiners are coming out of the woodwork to make some major bets on the price of Bitcoin as well. Balaji is suggesting Hyperinflation is coming and Bitcoin could hit 1 Million Dollars per coin if they don’t fix things now. That’s because the worst-case scenario could see the United States could potentially print over 10 Trillion Dollars to backstop all the banks AND save depositors. As much as I personally want Bitcoin to MOON, it would not be good for the world as a whole and could lead to worse problems than we have now.
THE BANKS ARE INSOLVENT
We should have learned to distrust bankers after the 2008 crisis.
Back then, they used complex language to hide the simple fact that the mortgages were bad. And today, they do it to hide the fact that the money is gone. Not in one https://t.co/i3xMQGss8z… https://t.co/1snGLJlPh8 pic.twitter.com/dTYJg0QaFH
— Balaji (@balajis) March 16, 2023
My friend Timothy Peterson from my recent Hot Wallet Podcast Bitcoin Whale Watching also Tweeted recently that he sees data to back up a potential rally..
1/8 This is a look at the microeconomics of #bitcoin and explains what’s happening now. It’s based on research at https://t.co/aaCqAGEbFd , mostly “Estimating The Impact Of Mempool Backlogs On Bitcoin Price”. pic.twitter.com/W67sOhGpKw
— Timothy Peterson, CFA CAIA (@nsquaredcrypto) March 20, 2023
Tomorrow we have the Federal Reserve announcing its latest decision on Interest Rates. They have a tight line to walk as they balance a real-life Banking Crisis and Inflation.
There’s a lot going on and tons to unpack. You can listen to my latest Audio Podcast “Cracks In The Banking System” or check out this video version:
Scott McGregor
Scott is a former Award Winning Broadcaster turned Swing Trader based out of Alberta Canada. Scott brings over 10 years of market experience, and has been a StockMarketMentor.com contributor for over 4 years. Scott's history in the media gives him an edge in being able to interpret a lot of information and break it down into simple and easy to understand analysis and ask questions that matter to real people.
