Regulators Warn: More Banks Teetering on the Edge of Collapse Like SVB and Credit Suisse

PatriotR Daily News 10/25/24

ECONOMIC NEWS

Regulators Warn: More Banks Teetering on the Edge of Collapse Like SVB and Credit Suisse

Despite the quiet in markets, alarming signs are emerging. The rapid rise in bond yields, driven by the Fed’s interest-rate hikes, has banks teetering on the brink. With $513 billion in unrealized losses, these vulnerabilities mirror the conditions that led to the 2023 collapse of banks like SVB and Credit Suisse.

A chilling new report reveals that a “weak tail of banks” faces funding crises and unrealized losses, much like the ones that caused the March 2023 bank runs. Worse, life insurers and real estate investors are also at risk, with rising rates threatening forced asset sales, plummeting bond prices, and triggering a domino effect across markets.

The threat? Deposit runs that can now unfold at lightning speed—2-3 times faster than before, fueled by social media panic. Even though no major collapses have occurred recently, the risk is ever-present. As fears spread, one thing is clear: financial systems are more fragile than they seem, and the next shock could come swiftly.

Stay alert—economic turbulence may be just around the corner. Read More.

FINANCIAL NEWS

Paul Tudor Jones Warns: 'All Roads Lead to Inflation' — He's Betting Big on Bitcoin and Gold to Survive the Storm

Billionaire hedge funder Paul Tudor Jones is sounding the alarm: the ballooning U.S. debt is on a disastrous, unsustainable path. Jones told CNBC that the U.S. is at an "incredible moment in history," with debt skyrocketing from 40% to nearly 100% of GDP in just 25 years. He warns, "We are going to be broke really quick unless we get serious about dealing with our spending issues."

With inflation looming as the only way out of this crisis, Jones is betting big on bitcoin, gold, and commodities while shunning bonds, echoing concerns from other major investors like Stanley Druckenmiller. Even Federal Reserve Chair Jerome Powell has called the current debt levels "untenable."

As campaign promises of more spending and tax cuts from both Harris and Trump threaten to worsen the situation, Jones warns that unless drastic action is taken, the U.S. could be heading for financial ruin. Read Now.

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