Reminds Me of the Mortgage Meltdown

Above, at Monument Valley last October. I am better off during these
 uncertain times than I was 16 years ago during the Mortgage Meltdown.

The bank collapse, inflation and financial uncertainty in recent weeks (actually in recent years, at least since Biden started occupying the White House) is reminding me more and more of the mortgage meltdown of 2008.

It affected me in a couple of ways. First, I was working for David Morse & Associates, a third-party insurance claims administrator, for a number of non-standard insurers. We handled claims for several of them. 

Trouble started in late 2007. We were getting plenty of claims work, but like a Chinese water torture, co-workers were getting laid off over several weeks. Finally, it was my turn. It was explained to me that the company got a percentage of the premium monies the insurers received as payment for administering their claims. But as the mortgage meltdown started, fewer polices were being underwritten by those insurers. Therefore, our company's income became less and less. So they had to lay off workers.

Next, I had a 401k retirement account. When the meltdown got worse, I started losing money in my account. 

While I was working for the third-party administrator, my supervisor wondered why I would do my periodic shoots to maintain my security gun permit. I told him that it was my hedge in case of job loss in insurance and one gets better pay in security if they have a gun permit. When I got laid off, he then fully understood.

After the lay-off, I worked in security mainly for the medical benefits. I also worked for an independent adjuster, but that job had no benefits. (This was just prior to ObamaCare, which really screwed things up.)

I worked the adjusting job during the day and wrote my reports while at my security posts in the evening or during the graveyard shifts.

In 2015, I decided to retire at age 62. I was financially secure with the work I was doing and from farm income I was receiving (that I inherited in 2010 after my mother passed away). Social Security benefits kicked in during the spring of 2016. 

Now that I am retired and own my own home, I don't have to worry about getting laid off. The house has no mortgage and I am getting my Social Security payments, which covers my monthly living expenses just fine since I don't have rent or house payments to make. I am in full control of my investments, so I have no worries there (I recently made some adjustments to protect them).

On the current situation, Forbes wrote:

Layoffs, return-to-office mandates, hiring freezes and reduced compensation will be results of Silicon Valley Bank’s collapse,

It looks like the country might be in or a wild ride...again!

3 Things You'll Want to Own If the Sh*t Hits the Fan

Above, the ammo shelves at the Albuquerque Cabela's. Photo by Armand Vaquer.

Some people are starting to relax a bit when it comes to the current financial situation. The actions the Federal Reserve has taken in the aftermath of the bank collapses, even though some of which are misguided and stupid, have calmed them a tad.

But there are those who aren't quite that confident of things and are preparing for worse-case scenarios.

Yahoo! Finance posted an article on three things you'll want to own if things go, well, see the title of this blog post (it's also Yahoo's article title).

They start it out with:

As the world watches with trepidation the recent string of bank runs, liquidity crises and outright failures sparked by the collapse of Silicon Valley Bank and Signature Bank, many are considering where this crisis will lead.

The global banking system is surely in hot-water at the moment, but most analysts only see it as a temporary, solvable problem. It would probably take an extreme, rare crisis of a much larger scale to take global civilization down.

While the likelihood of a total societal collapse is extremely low, you still might want to prepare for the worst. In this article, Benzinga discusses three essential items you'll want to own if the unthinkable occurs — gold, ammo and alcohol.

To read more, go here. 

Will Bank Collapses Cause A Run On Gold and Silver?

Above, 2022 Canadian silver Maple Leafs. Photo by Armand Vaquer.

People are anxious over the banking crisis.

They are concerned that their bank savings accounts will go up in smoke, leaving them flat broke. They are beginning to turn to buying precious metals such as gold and silver.

The question arises, will this cause runs on gold and silver, thereby driving up prices?

An article in Yahoo! Finance takes a look at this.

They begin with:

The recent failures of Silicon Valley Bank and Signature Bank, two of the largest banks in the United States, piled on top of existing crises like inflation and the war in Ukraine, have raised concerns about the stability of the global financial system.

As investors search for ways to protect their wealth in these uncertain times, many are looking to precious metals, especially gold and silver, as a safe haven. The question on the minds of countless experts and analysts is whether bank runs and failures could lead to a run on gold and silver, driving their prices up.

The failures of Silicon Valley Bank and Signature Bank have exposed the vulnerabilities of the banking system, even in developed countries. In light of these incidents, some experts are warning that more bank runs could occur, particularly in the face of ongoing global crises such as geopolitical tensions, inflation and economic uncertainty. As these factors continue to shake the financial world, investors are turning to gold and silver as a means of preserving their wealth.

Analyst Mike Gleason of Money Metals Exchange explains in an FXStreet article that bank runs can lead to a run on gold and silver as investors seek to safeguard their assets from the risks associated with traditional banking institutions. Physical gold and silver can be a great choice in these situations because they are considered some of the best safe-haven assets and incur no counterparty risk.

To read more, go here. 

5 Ways To Invest In Silver

Above, 2022 Canadian Maple Leaf silver coins. Photo by Armand Vaquer.

More states are changing their tax laws on gold and silver by removing sales taxes on these precious metals and recognizing them as money instead of commodities. A bill has been introduced in the Texas Senate is a recent example.

Since our financial system is going haywire due to idiotic Federal Reserve policies, people are turning to gold and silver as a hedge against inflation.

Since gold is over $1,900/troy ounce, silver at $22.15/troy ounce spot price (currently) is a lot more affordable and is attracting buyers.

Yahoo! Finance has posted an article on five ways to invest in silver.

They begin it with:

Precious metals such as silver have long been an alternative to traditional investments such as stocks and bonds. When times get tough or the economy faces severe inflationary pressures, some investors turn to silver to hedge their bets or to invest more defensively. Silver prices spiked in March 2023 following the collapse of Silicon Valley Bank, as concerns were raised about the stability of the financial system.

Investors like silver for many reasons, but many see it as a store of value in uncertain times, while others see silver and other precious metals such as gold as protection against inflation. For this latter group, investing in silver is a way to be sure that they have a currency that can’t be inflated away by money printing or potentially destructive Federal Reserve policy.

There are a number of ways to invest in silver, from owning it outright to owning shares in companies that produce it. Here are five of the best ways to invest in silver.

To read more, go here. 

Biden: Banking System Is "Safe"

The man who has the "Midas Touch in reverse", His Fraudulency Joe Biden promised today that people should have confidence in the banking system after two banks went belly up last week.

The Daily Caller reported:

President Joe Biden addressed the closures of Silicon Valley Bank and Signature Bank on Monday, telling Americans to “have confidence” in the banking system because the administration is taking steps to hold those responsible “accountable.”

The president promised that the banks’ customers will “have access to their money” on Monday and that taxpayers will not be forced to bail out the banks.

The Federal Deposit Insurance Corporation (FDIC) took control of the New York-based Signature Bank on Sunday after the Friday collapse of Silicon Valley Bank (SVB). The collapse of SVB is the largest bank meltdown since Washington Mutual in 2008, and will likely have reverberations across the tech sector.

When Biden said that those responsible will be "held accountable" over the fiasco, two thoughts came immediately to my mind: "That'll be the day!" and "This I gotta see!" 

I don't see how anyone would have any confidence in anything Biden says or does. He's been a disaster since day one.

To read more, go here.

Another Bank Collapse Imminent?

Above, 2022 American Silver Eagles. "Buy real gold and
silver coins," - Robert Kiyosaki. Photo by Armand Vaquer.

Will a third bank collapse?

The possibility is there and Robert Kiyosaki thinks it will come and soon.

From Investing.com:

• Robert Kiyosaki warns of a potential third bank collapse, which could benefit precious metals.
• Kiyosaki’s prediction aligns with his 2008 forecast regarding Lehman Brothers’ collapse.
• Ongoing speculation about Credit Suisse’s future amid SEC call an all-time low shares.

Silicon Valley Bank and Silvergate Bank’s collapse in 48 hours has shaken the US financial system amid economic uncertainty. It’s expected to worsen, with a third lender potentially facing the same fate, according to Robert Kiyosaki, author of “Rich Dad Poor Dad.” Kiyosaki tweeted on March 10 that this situation would benefit precious metals.

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. Will be on Neil Cavuto on FOX on Monday.

— Robert Kiyosaki (@theRealKiyosaki) March 10, 2023

Kiyosaki believes his prediction about a potential third bank collapse aligns with his 2008 forecast regarding the Lehman Brothers’ collapse. The Lehman Brothers’ failure was a defining moment that deepened the 2008 financial crisis.

Kiyosaki has previously predicted a global economic collapse and suggested that bank runs could accelerate during the crisis. His warning about a potential third bank collapse coincides with ongoing speculation about the future of Credit Suisse, another investment bank with a focus on cryptocurrencies.

I am glad that I started investing in silver bullion last year. I never got into cryptocurrencies. 

To read more, go here.

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.