Ripped From the Headlines, March 13, 2023
US Market Stress Indicators Flashing Red, #SVB Execs Sell Millions In Stock, Regional Banks On The Brink - #Read, #Share, & #Subscribe - SherlocExposes.com
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“Financial market stress indicators reacted sharply on Monday after the failure of three U.S. banks within five days, which prompted a rethink among investors on the outlook for U.S. rates and triggered the biggest rush into bonds since at least 2008.
State regulators closed New York-based Signature Bank on Sunday, two days after California authorities shuttered Silicon Valley Bank, a lender that focused predominantly on start-ups. Crypto-focused bank Silvergate said last week it would also have to wind down its operations.
SVB is the largest bank to fail since the 2008 financial crisis last week, sending shockwaves across global markets.
U.S. regulators stepped in over the weekend to guarantee the deposits of SVB, but this did little to reassure investors that there will be no more fallout.
The cost of insuring exposure to European junk bonds soared to two-month highs, while various gauges of equity and bond market volatility shot to their highest since October and even gold hit a six-week peak.
‘I would define the moves we're having today as an old-fashioned flight to quality, this is what normally happens in times of stress. Credit spreads widen, equity markets come off and safe havens provide capital appreciation,’ Juan Valenzuela, a bond fund manager at Artemis, said.”
“Ahead of the collapse of the Silicon Valley Bank (SVB), many of the company’s top executives sold their shares worth $4.5 million in the company. The bank’s Chief Executive Officer Gregory Becker, Chief Financial Officer Daniel Beck, and Chief Marketing Officer Michelle Draper sold their shares of the bank’s parent company SVB Financial Group.
While CEO and President Becker sold over 12,000 shares for $3,578,652.31 on February 26, CFO Beck sold $575,180 in stocks in a separate transaction on the same day. Draper’s shares were sold over several transactions in earlier months, data from the US Securities Exchange Commission's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system revealed. The company’s executives have been steadily selling stocks since May 2021, further filings show.
The most recent dumping of stocks by Becker, who had not sold any shares in over a year, was done through the pre-arranged share sale through 10b5-1 plans. These plans allow company insiders and executives to arrange to sell shares on certain predetermined dates in order to prevent illegal insider trading.
However, while 10b5-1 plans are not illegal they are not without their own loopholes. The biggest loophole is the lack of any mandatory cooling-off period allowing executives to trade shares on the next predetermined date.
While the US market regulator has responded by introducing a 90-day mandatory cooling-off period which would prevent executives from trading shares in the next three-month period, the new regulations are only going into effect from April 1.”
“The unexpected demise of Signature Bank over the weekend, along with the failure of Silicon Valley Bank, ignited a shoot-first-ask-questions-later reaction among regional-bank investors as customers moved deposits to the largest U.S. banks for perceived safekeeping, observers said Monday.
Stocks of regional banks such as First Republic Bank, Western Alliance Bancorp, PacWest Bancorp and Zions Bancorp dropped Monday, even after U.S. bank regulators set up a new emergency-loan program as a backstop for deposits.
First Republic Bank said it received liquidity from the Federal Reserve and JPMorgan Chase & Co. to bring its total liquidity up to $70 billion.
First Republic’s executive chair, Jim Herbert, told CNBC-TV the bank has not seen many depositors leave and that it’s been able to meet demands for withdrawals.
First Republic said it’s open for business as usual, according to a Monday statement.
‘We’re continuing to fully serve the needs of our clients by opening accounts, making loans, executing transactions, and delivering exceptional service at our offices and online,’ the bank said in an email to MarketWatch.
‘Investors are scared by a flight of deposits to the too-big-to-fail banks,’ Janney Montgomery Scott bank analyst Christopher Marinac told MarketWatch. ‘It’s a perception problem that’s become a perception crisis.’
Even though the Federal Reserve announced a new backstop program and President Joe Biden declared U.S. banks safe, investors remain skeptical about the fixes in place for the banking system — or they simply haven’t taken the time to absorb the moves by regulators to calm investors, Marinac said.”
A “What You Expected Monday,” Ripped From The Headlines. Things To Ponder:
“Nothing To See Here, No Need To Panic… We Have It Covered!”
That’s what the government in the UNITED STATES said to you yesterday when they made up the illusion of unlimited money to cover deposits at banks to prevent a bank run…
Except many people figured out that it’s not really possible to do that…
And proceeded to freak right the hades out anyway…
Simple Math:
The FDIC has $125 billion (covers about 1.38% of all deposits in the US)
The guaranteed amount under FDIC coverage from Silicon Valley Bank: is $21 billion.
So, WITH ONE BANK, 25 or so percent of the FDIC nest egg to protect your deposits is gone…
And this is why you saw the government offer unlimited bailouts…
To hold off a systemic economic collapse worldwide…
Which is still a real possibility.
For reference, The Bank Term Funding Program (BTFP) that the Federal Reserve decided to spin up is taking money from the Exchange Stabilization Fund (ESF), which was created by the 1934 Gold Reserve Act…
Right after FDR allowed the government to confiscate steal every US citizen’s gold in 1933…
Here’s what the ESF is mostly used for today:
Yep, our treasury just uses it to LEND TO OTHER ECONOMIES ON THE BRINK OF DEFAULT.
What does that say about the future prospects for the US economy?
Feels like a perfect excuse to push the CBDC - Central Bank Digital Currency (Click Here to see what that means.)
Know. Your. Foe.
“Yes, We Sold Our Stock Prior To The Collapse, But We Didn’t Know Anything… Seriously!”
Are you going to believe those fine, upstanding executives at Silicon Valley Bank or your lyin’ eyes?
Yeah… we know what you’re thinking… we’re thinking the same thing:
It’s really, really scary how much people like those SVB executives underestimate the public…
To the point where they will just do things like leave you holding the bag on their bad decisions and skating out with a big payday, thinking you won’t notice…
They even paid bonuses right before regulators took over the bank!
If you’re looking like Homer Simpson at this point:
You’re spot on.
The really scary part of this is that where there’s smoke, there’s fire…
Meaning more banks are on the brink of failure, and you just haven’t heard about it yet…
Be vigilant!
“Take Your Money From That Small Bank That You Think Will Fail, A Put It With This Big Bank That Actually Will!”
Most people are missing the big picture, and that’s exactly what those who want a more centralized currency (#CBDC) want.
Your local/regional banks and credit unions are actually one of your biggest allies in the battle for your economic freedom…
And that’s why power brokers want to kill them…
And your options for cryptocurrency that they can’t control.
That’s why crypto-focused banks like Silvergate Bank and Signature Bank are now dead.
Think about it…
If you have nowhere else to go except the “too big to fail” banks, you’re a fish in a barrel…
And subject to whatever they want you to do.
By the way, this is how the big banks actually treat you when it comes to your money:
Don’t believe us? Try going to your local bank branch and getting some cash.
Know. Your. Foe.
You need to be prepared… there’s just too much crazy stuff happening.
We’ve found the 4Patriots solar generators to be light and easy to use. Plus, they are quiet and don’t require fuel.
You’re able to power key things like your fridge, freezer, coffee maker, and more.
What does this mean?
The economy Your future is hanging in the balance… literally.
The people running things have no clue how to fix the problem… Even if they did, it’s too big to fix now.
They’ll be using any assets you have left in their hands (i.e.: pensions, 401k’s), and rob you blind to try and “fix” the problem.
You’ll be less wealthy, with fewer supplies, and less freedom to speak your mind.
Those aren’t good things.
Why should I care?
There’s so much to unpack…
Your wealth…
Your legacy…
Anything you plan to leave for future generations…
Getting the basics to live…
All of these things are teetering on the edge.
You should REALLY care.
What Should I Do?
Start thinking about the basics that people will need, and look at those things as potential avenues to protect yourself and as an investment.
Do you know why Berkshire Hathaway’s stock is so expensive?
They touch 90% of your life every day, and you don’t even realize it. That’s inflation/deflation/recession/depression insurance. You’ll still need toilet paper and toothpaste.
You should also tell as many people as you can about what’s happening. Don’t leave people behind, while we still have a window to help them.
A quick way to do that: Share this newsletter… heck, take from it, and do your own. We give you permission…
Take the time to learn more about Parallel Economies, and find alternatives to the things you use today… food, money, and transportation.
GET MOVING ASAP.
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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