Wealth

A series of banks began to collapse! this time it’s really different

It’s been a rough weekend, with several bad news just hitting at the same time.

1. Silicon Valley Bank was completely cold and failed to save.

It has been a full week since the news of the closure of Silicon Valley Bank began on the 10th. With the emergency support of the Federal Reserve, Federal Insurance, and other major institutions, Silicon Valley Bank finally fell yesterday. .

According to the emergency notification of major official media:

On the 17th local time in the United States, the Silicon Valley Bank Financial Group has officially issued a statement. According to Chapter 11 of the “U.S. Bankruptcy Code”, the group has officially entered the application and will undergo bankruptcy reorganization under the supervision of the U.S. courts to seek potential buyers. Assets under the group that have not been taken over by the Federation.

That is, the 21st largest bank in the United States with a volume of about 210 billion US dollars is completely cold.

Most of the assets have been taken over by the U.S. federal government before, and now they are preparing to sell the ones that have not been taken over, and have really entered bankruptcy and reorganization. .

To make matters worse, they have received an official notification from Nasdaq, which directly stated that they no longer meet the requirements for continued listing and will be delisted from the stock market immediately.

Originally, the shareholders of Silicon Valley Bank had already lost a lot in this wave of bankruptcy rumors, and now they lost nothing. .

As the above-mentioned bad news about Silicon Valley Bank came one after another, the financial market, which had been a little calm for a few days, began to tremble again, and everyone was in danger. .

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2. The First Republic Bank of the United States may also be “cold”!

Under the storm of Silicon Valley Bank, another super bank in the United States, the First Republic Bank of the United States, is also precarious.

First Republic’s market capitalization has now shrunk to about $4 billion from about $22 billion in early March. It is equivalent to a sharp drop of 80%! !

In the past few days, the First Republic Bank has been frantically raising funds everywhere, and the United States is also rushing to rescue it, so as to prevent the First Republic Bank from going bankrupt as Silicon Valley Bank.

Among them, on the 16th local time in the United States, a number of large banks in the United States have jointly injected 30 billion US dollars into the First Republic Bank.

But just one day later, on the 17th, after Silicon Valley Bank officially announced bankruptcy and reorganization, the stock price of First Republic Bank plummeted again.

Even though the major banks in the United States urgently injected 30 billion U.S. dollars into the First Republic the day before, they still did not stop this trend.

On the 17th US time, the international rating agency Moody’s announced directly and decisively, without showing any face to the US.

Directly comment on the financial situation of First Republic Bank of the United States has completely deteriorated, and directly downgraded all long-term ratings of First Republic Bank and maintained a negative outlook.

At this point, First Republic’s long-term issuer rating was downgraded to junk status.

What is even more pessimistic is that it is said that many executives of the First Republic Bank of the United States rushed to sell the shares of the Republic Bank they held in their hands before the collapse of Silicon Valley Bank.

In other words, even the people in this bank don’t trust their own bank anymore! !

3. The second largest bank in Switzerland may also be “cool”.

Founded in 1856, Credit Suisse has a very important influence in the global capital market. With a history of 167 years and headquartered in Zurich, Switzerland, it is not only the second largest bank in Switzerland, but also the fifth largest consortium in the world.

But under the storm of Silicon Valley bank failures, the European superpower may also be down.

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I looked at their stock price in the past year, and it also plummeted by more than 70%. If the timeline is extended to three years, it will plummet by about 90%.

And the bank’s largest investor, the National Bank of Saudi Arabia, has now clearly soared “unable to provide any further financial assistance to Swiss banks.”

Many European countries are now worried that UBS will fall if it cannot bear it.

The weight of this European super bank is larger than that of Silicon Valley Bank and the First Republic Bank of the United States. Banks of this level are at the forefront of the world. Once they fall, it will cause a huge financial tsunami to the entire European financial industry and banks.

Now countless countries in Europe have already dispatched one after another, and are urgently discussing countermeasures.

No one in Europe wants to see UBS suddenly collapse like this, and they are afraid that Europe will repeat the same situation as the 2008 financial crisis;

According to the information I found, Societe Generale, Deutsche Bank, HSBC, and the Swiss National Bank are all seeking to discuss the full or partial acquisition of Credit Suisse Bank.

Everyone is trying their best to avoid the fall of this European banking giant, for fear that it will become the fuse that detonates the European financial industry crisis. .

4. The United States announced that 186 banks may have the risk of “thunderstorm”.

In addition to the above three bad news, CCTV has just reported the latest data analysis of Wall Street in the United States. According to the latest research:

There are still 186 banks in the United States that may have similar risks to Silicon Valley Bank.

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You can feel the horror of today’s news from the words. .

Now all the major official media are reporting urgently, which has already started to cause screen swiping.

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Sheila Bair, former chairman of the Federal Deposit Insurance Corporation, issued a direct warning.

It is believed that the U.S. banking system is currently in a “Bear Stearns moment”. If the government does not continue to help, the U.S. bank may experience a domino-style collapse.

What is a Bear Moment? Let me explain to you simply:

The financial crisis that swept the world in 2008 was initially triggered by the subprime mortgage crisis in the United States, which subsequently triggered the collapse of Lehman, a super investment bank;

Then it triggered the annexation of Bear Stearns Investment Bank!

The specific time is March 2008. In the context of the subprime mortgage crisis, in order to alleviate the liquidity shortage of Bear Stearns, the fifth largest investment bank in the United States, the Federal Reserve approved JPMorgan Chase’s acquisition of Bear Stearns and provided special financing assistance for the acquisition. .

However, the Federal Reserve seriously underestimated the impact of the Bear Stearns incident, believing that the worst of the subprime mortgage crisis may have passed, causing the situation to spiral out of control. In September of the same year, it directly evolved into a global financial “tsunami”.

Write at the end:

The current situation has many similarities with that in 2007-2008.

Including that it was also triggered by bank failure and bankruptcy at that time, including that many small and medium-sized banks had a shortage of liquidity at that time.

Small banks can’t help it. With such a high interest rate increase, they can’t earn back the interest they have to pay to savings users, and they lose money every year. The country is unwilling to pay the bill, so it can only sell shares and assets at a low price and introduce capital injection from big banks.

If they don’t get capital injection, the consequences will be the same as the next Lehman Brothers and the next Silicon Valley Bank, and it will be a thunderstorm!

Because, if you can’t even pay the user’s interest, it will definitely lead to a continued lack of confidence in the market, and there will definitely be many, many depositors asking to withdraw their deposits, and they will no longer deposit money with you.

If this happens, many, many banks will “explode” in the short term due to lack of capital flow.

The wave in 2008 was also caused by the United States, and it was also fueled by the storm of interest rate hikes, which completely detonated the global financial tsunami.

Now the United States is still raising interest rates, raising interest rates, and raising interest rates because of hyperinflation; while Europe has to raise interest rates because of the United States.

So now once again began to appear one by one the same signs as the early stage of the 2008 financial tsunami. .

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If you don’t understand, just understand it like this:
In the past, if 100 yuan was printed, 100 yuan of goods and materials would be produced. Now 100 yuan is directly increased to 120 yuan, but still only produces 100 yuan of materials and products; then money inflation! !
120 yuan can only buy 100 yuan of goods, so the price of this product will naturally only get higher and higher! Keep going up!
When hyperinflation occurs, an economic recession will be issued, so we can only start raising interest rates, and withdraw the excess banknotes previously issued.
This is the case of interlocking links, so now it has become what you see today.
In fact, it is impossible for the financial crisis to appear out of thin air. It is caused by certain countries and certain people themselves.
Just now, Japan has also begun to make decisions to prevent the financial situation in Europe and the United States from impacting Japan itself.
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Japanese media and experts pointed out that in the face of the financial turmoil caused by the radical interest rate hikes in the United States and Europe, Japan should not take it lightly and stay out of it. In the future, the Bank of Japan should be more cautious when seeking to “export” its ultra-loose monetary policy, otherwise some poorly managed local banks in Japan may face bankruptcy and reorganization.
Japan is vigilant, and we must also start to be vigilant! !
1. Our monetary policy is different from that of Europe and the United States. During the epidemic a few years ago, they printed and issued banknotes frantically, but we did not!
We have been making money because of the very good export trade in the past three years. So there is no way to learn from the United States. Even now, many European countries are imitating the United States to raise interest rates, and we have not imitated the United States to raise interest rates.
Without the wave of interest rate hikes, those problems would naturally not arise.
2. We are a big manufacturing country, producing goods in large quantities.
Manufacturing is the foundation of our country’s strength, especially during the epidemic period in the past few years. We were the first to resume work and production. Many, many basic living materials and commodities in European and American countries were produced by us overtime.
In the relationship between supply and demand, we are producers, those who produce goods, and those who export goods.
they are not! They are buyers.
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Both the buyer and the seller must follow the principle of equal and fair exchange. The simple understanding is to exchange things for things.

We took cargo ship after ship of materials out of the country, exchanged them for oil, natural gas, iron ore and other materials purchased in other countries’ currencies, and then pulled them back to China.
Now the price of oil has risen, the price of gold has risen, and the price of natural gas has risen. According to the principle of equal barter, the price of our exported materials has also risen.
Therefore, the rise in global prices has no effect on us in China, because we also set up stalls to sell goods.
But for those buyers, it’s a big loss.
They have to pay more dollars, more pounds, more euros to buy the same goods as before. .
What we have always followed is barter and equivalent transactions. Therefore, the global epidemic inflation in the past few years has had little impact on us.
For European and American countries, the impact is super huge.
So they had the worst inflation in 40 years. . This would not be the case in our country.
However, for us personally, if the financial tsunami sweeps the world, we still need to know some basic common sense.
1. In 2008, global stocks fell by half.
2. But materials have become hard currency, the most valuable. .
You can see the trend of gold after a series of accidents in the Bank of America in the last week.
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Countless Europeans and Americans are hoarding gold crazily now, and you will know what happened to gold in 2008 when you go back and see for yourself. .
In extraordinary times, materials must be the most valuable. Including gold, including food, including real estate in the core area,
And all hard currencies such as ores, resources, and basic living materials that are widely circulated and recognized by various countries.
Just write here briefly, I hope you can understand today’s article, if you don’t!
Then bookmark it and watch it several times! !

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