Banks To Collapse Like Dominoes?

Will banks continue to collapse like dominoes? That is something that could happen, which nobody wants.

First, I saw a March 10 article in coin/bullion dealer Money Metals Exchange, speculating that this scenario may be beginning to happen.

They wrote (some snippets):

On Wednesday, March 8, 2023, Silvergate Capital announced it ended operations and liquidated its Silvergate Bank.

This announcement sent its stock price plummeting, following a months-long downward spiral for Silvergate Bank, which was over-exposed to cryptocurrencies.

One day later, Silicon Valley Bank informed some clients that wire transfers could be delayed.

The bank's support phone lines became inaccessible.

In addition, numerous customers stated having difficulty logging in to the company's website to view their account information and make transfers.

One of the prevailing themes is that the Fed has been trapped via its mandate to fight inflation and maintain high employment.

Rate hikes had never accelerated so high in such a short duration. Critics of this monetary policy stated, "The Fed will keep hiking until they break something."

Things have been breaking in the past two days:

• First Republic Bank based in San Francisco, saw its shares plummet 16.5% Thursday and 15% Friday to $80 a share, a new 52-week low.
• Phoenix-based Western Alliance Bancorp stock lost nearly 35% and trades at $49 a share.
• New York-based Signature Bank stock fell more than 21% to $82, a 52-week low.
• Salt Lake City-based Zions Bancorp stock fell more than 13% to a 52-week low of $40 a share.
• Pasadena-based East West Bancorp shares were down more than 12% to $64 a share.
• Minneapolis-based U.S. Bancorp stock lost 7% to close at $42.30 a share.

Second, this was posted today by Finbold:

The United States financial system has been rattled by the collapse of Silicon Valley Bank (SBV) and Silvergate Bank within 48 hours as economic uncertainty prevails. Therefore, some financial sector players project that the situation will likely worsen in the coming days. 

In particular, Robert Kiyosaki, the author of the best-selling personal finance book “Rich Dad Poor Dad,” has warned that a third lender will likely follow suit. He stressed that the situation would positively impact precious metals in a tweet on March 10.

According to Kiyosaki, his prediction aligns with a 2008 forecast of the collapse of the Lehman Brothers. Notably, the failure deepened the 2008 financial crisis, and the incident was considered a defining moment. 

“Two Major Banks have crashed. #3 set to go. BUY real gold and silver coins now. No ETFs. When Bank #3 goes gold & silver rocket up. 2008 I forecasted collapse of Lehman days before it crashed on CNN. If you want proof go to RICH DAD .com,” he said.

Well, silver's spot price did shoot up around $.50/toz yesterday following the collapse of Silicon Valley Bank.

Remember, the domino effect of bank failures was a cause of the Great Depression.

I plan to contact my banker and review my retirement investments. Some adjustments may be in order.

By the way, while all this has been going on, His Fraudulency Joe Biden headed off for another vacation.