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.

Silicon Valley Bank Collapses, Silver Spot Price Up

Above, an 1889 Morgan Silver Dollar. Photo by Armand Vaquer.

A major bank in Silicon Valley collapsed, causing the stock market to drop over 300 points today. At the same time, the spot price for went up.

CNBC reported:

Stocks tumbled Friday as tech-focused lender Silicon Valley Bank shut down following losses in its bond portfolio, prompting the biggest bank failure since the global financial crisis and sending shockwaves through the banking sector.

The Dow Jones Industrial Average dropped for a fourth consecutive day, finishing 345.22 points lower, or 1.07%, to close at 31,909.64. The S&P 500 lost 1.45% to settle at 3,861.59. The Nasdaq Composite shed 1.76% to end at 11,138.89.

All the major averages capped off the week with losses. The Dow fell 4.44% to post its worst weekly performance since June. The S&P dropped 4.55%, while the Nasdaq lost 4.71%.

Perhaps this is why the silver spot market went up today.

According to Monex on today's rise in silver:

$20.56

+0.42

+2.09%

I don't know the correlation between the stock market and silver's spot price today, but it is something worth keeping watch on.

To read more, go here.

RV Industry In Chaos?

Above, a RV park in Marin County of California. Photo by Armand Vaquer.

Is the RV industry in chaos?

One would not think so with sales of new RVs are at high levels. But one RV industry expert believes it is.

According to an article in The Weekly Driver:

Chuck Woodbury, editor and publisher of RVTravel.com, the industry’s largest online publication, is a full-time RVer and a mobile lifestyle advocate. But Woodbury says the RV industry is in chaos. Buyers must beware, owners must be more considerate and manufacturers need to re-evaluate their responsibilities. 

According to the Recreational Vehicle Industry Association (RVIA) in Reston, Va., wholesale shipments of RVs increased 17.2 percent in 2017 from the previous year. Motorhome shipments increased 14.4 percent last year from 2016 totals. 

But while the sales highlight the industry’s boom, it’s also fostered growing concerns of decreasing manufacturing quality. Additionally, with traditional homes increasing unaffordable in metropolitan areas, including the Bay Area, more city dwellers are living in RVs, sometimes in parking lots. Proper sanitation should be a priority but sometimes isn’t. 

As recently reported by Bay Area News Group, many RV dwellers in the Silicon Valley are working class individuals or families who have been forced out of their homes or can’t affordable apartment of other traditional housing. They’ve simply fallen on hard times. 

“I think the RV industry should be watching carefully, recognizing this is a problem that will likely get worse,” said Woodbury, an author and host of the best-selling Better Business Bureau DVD, “Buying a Recreational Vehicle.” 

“But I have seen no evidence that anything is being done. The focus is almost exclusively on sales with some discussion about expanding RV technician training programs, which is a good thing.” 

Woodbury, who has traveled throughout the world as an RVer for more than 30 years, believes manufacturers and dealers entice potential buyers with increasingly advanced equipment and furnishings and with low long-term financing. But it’s rarely in the best interests of RV customers. 

“To me, it’s a huge problem,” said Woodbury, who frequently receives letters from readers of his website and RV Travel Newsletter about catastrophic issues. “I am probably the only voice out there trying to get the companies to do something more to improve their products.” 

Further troublesome is a lack of qualified assistance for RVers whose vehicles need repair.

It is interesting that Silicon Valley and the San Francisco Bay area are cited. With high prices for food, housing, gasoline and high taxes in California, it is a small wonder that people are resorting to living in RVs. California has become a one-party zoo. This doesn't surprise me one bit.

To read more, go here.