by Mac Slavo, SHTF Plan:
The banking and financial crisis is far from over. Yesterday, the Federal Reserve hiked interest rates yet again to “fight” inflation, however, this could create a “domino effect” of regional bank failures. PacWest Bancorp is now considering a sale or “other moves” to keep it “solvent” for the time being.
The Fed raised the benchmark federal funds rate to a range between 5% and 5.25%, which is the highest level since 2007, at a time when bank customers are already feeling anxious after a string of recent bank failures.
Controlled Demolition In Progress of All Banks That Are Not TOO BIG TO FAIL
Massive gyrations on the balance sheet after FDIC’s take-down of First Republic, sale of its assets to JP Morgan, and FDIC’s loan to JPM.
The one thing about the financial world that never ceases to amaze me is how far behind the curve mainstream economists always seem to be. Not long ago we had both Janet Yellen and Paul Krugman, economists supposedly at the front of the pack, both proving to be utterly ignorant (or strategically dishonest) on the effects of central bank stimulus measures and the threat of inflation. In fact, they both consistently denied such a threat existed until they were crushed by the evidence.
