Ripped From The Headlines, December 20, 2022
Will "Shadow Banks" Kill The Economy? Wells Fargo Pays $3.7B For Abusing Customers, Ghana Stops Foreign Debt Payments. Read, Share, & Subscribe - Sherloc Exposes
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“The Federal Reserve has lifted its benchmark lending rate this year to its highest level in 15 years, triggering a sharp decline in speculative cryptocurrencies, technology stocks and housing prices.
Now, if the economy plunges into a recession next year as rates continue rising, some regulators fear that problems at unpoliced “shadow banks” could ricochet through the financial system or increase the number of lost jobs.
But financial risks have not gone away; they have just moved out of the spotlight.
While regulations made the big banks safer, they did nothing to prevent other institutions, such as hedge funds, insurance companies, asset managers, money market funds and fintech companies, from taking risks. Facing few of the disclosure requirements of deposit-taking banks, these shadow banks binged on borrowed money and acquired assets that could be hard to sell in rocky markets, analysts said.
‘We need to worry, a lot, about non-bank risks to financial stability,’ Michael Barr, the Fed’s vice chair for supervision, said in a speech earlier this month.”
“Wells Fargo & Co. reached a $3.7 billion settlement with federal regulators, including a record $1.7 billion fine, to cover allegations that for years it mistreated millions of customers, causing some to lose their cars or homes.
The agreement with the Consumer Financial Protection Bureau includes more than $2 billion in “redress to consumers,” the CFPB said in a statement Tuesday that cited ‘widespread mismanagement’ of auto loans, mortgages and deposit accounts.
‘Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,’ CFPB Director Rohit Chopra said in the statement. ‘The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. This is an important initial step for accountability and long-term reform of this repeat offender.’”
“Ghana has stopped making payments on its external debts to bondholders, other commercial lenders and foreign governments, making it the latest deeply indebted developing country to fail to make good on its foreign obligations.
In a statement on Monday, the country’s finance ministry announced ‘a suspension of all debt service payments’ on external government debts, including foreign currency bonds, commercial loans and ‘most of our bilateral debt.’
It underlines the extent of debt distress among developing economies, especially in sub-Saharan Africa. About 60 per cent of lower-income countries have debts that are unsustainable or in danger of becoming so, according to the IMF and the World Bank, which has warned of a wave of impending debt defaults.
Sri Lanka earlier this year defaulted on external debt payments, while Zambia missed payments in 2020.”
Financial Stress - Ripped From The Headlines, Tuesday Edition. Things To Ponder:
Boogeyman Alert - Shadow Banks Are Going To Get You!
Not really…
Well, not as bad as the big banks.
Interesting timing for this piece to be written… as the economy is in a death spiral (in large part thanks to big banks) and these major banks are technically insolvent, the regulations that the government “has in place” don’t really address the problem.
Wondering how that could be possible?
Click Here and see how the government took away ANY NEED FOR BANK RESERVES.
That means, if 100 of us all hit our local bank for cash at the same time… they ain’t got it.
Sounds SUPER safe, doesn’t it?
“Banks Are 100% Safe!” Except When Wells Fargo Has to Pay $3.7B In Fines…
As we mentioned above, the “big banks” aren’t really all that safe…
And they really don’t care much for you… or the safety of your money for that matter…
Wells Fargo just happened to get caught with their hand in the cookie jar, and got a smack.
Given that bank reserves are at zero, how many smacks to you think the government can give out? Or how well they can protect you?
Better question: How long will that $250,000 in FDIC insurance hold up when everyone is upside down?
Ghana… One of the Tips of The Spear…
Last week, we broke down the instability in Peru (click here for the article), and tracked down the (re)source around why it was happening.
Now, we’re seeing more and more countries fall into the IMF/World Bank/WEF death spiral, which is designed to be a slick wealth transfer.
It always starts with an inability to pay off debt… from people who gave you money with terms that would not allow you to pay it back.
They then show up with the solution… more “help” with extra strings (collateral like natural resources) attached.
Problem. Reaction. Solution.
Ghana was one of the most advanced economies on the African continent. And it also has large gold reserves.
Yikes.
What Does This Mean?
Your security and sovereignty are being eroded so rapidly, that there may not be a way back from it.
The question (once again) to ask is this: What happens if when the US becomes insolvent?
Other countries are already thinking about it. Click Here to take a look at their plan.
Why Should I Care?
The anchors of your wealth, and the people who generally control the outcomes around it, aren’t doing well… and are nakedly corrupt… AND getting away with it.
You should care, and ask the following question:
Who is watching the watchers?
What Should I Do?
We really encourage you to download our Parallel Economies Blueprint from our Parallel Economies Community.
Click Here, and you will see it pinned at the top. It’s free to join.
Study it, and start taking action ASAP.
Tell everyone you know.
Your future depends on it.
James Wesley, Rawles, publisher of SurvivalBlog.com has put together a “bookshelf” list of key things you should have. CLICK HERE to access the list.
Plus a recap of the 50 things you should have handy to barter.
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Ripped From The Headlines is your daily digest of what’s happening in the world. We help you to understand what it means, why you should care, and what you should do.
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