- Watch The JD Rucker Show every day to be truly informed.
The banking crisis continues unabated. Before we get to the meat of the topic, let’s go ahead and list the 15 banks being discussed in the video so you can quickly see if yours is named…
- Ally Financial
- Comerica
- KeyCorp
- Truist Financial Corporation
- Pacific Premier Bank Corp
- Sandy Spring Bancorp
- Popular Bank
- Zions Bancorporation
- Eastern Bankshares
- Bank of Hawaii
- Silvergate
- PacWest Bank
- Western Alliance Bancorp
- Homestreet Bank
- Citizens Financial Group
Now, the full article by Epic Economist…
America is about to see a cascade of bank failures, and the future of hundreds of regional banks is on the line right now. The collapse of Silicon Valley Bank, Signature Bank, Credit Suisse and First Republic marked the start of a reckoning in a sector that is being severely impacted by rising interest rates, souring loans, lower deposit rates, and falling profits in 2023. Many institutions have high exposure to risky assets, something that account holders will probably only find out after a major crisis erupts and they can no longer withdraw their funds.
Regional banks are particularly endangered due to the fact that the Federal Reserve’s aggressive interest rate hikes have eroded the value of bank assets such as government bonds and mortgage-backed securities. Most bonds pay a fixed interest rate that becomes attractive when interest rates fall, driving up demand and the price of the bond. In contrast, if interest rates rise, investors will no longer prefer the lower fixed interest rate paid by a bond, thus driving down its price. No wonder why some institutions have lost more than 80% of their market capitalization this year.
For example, Pacific West Bank may be the fourth California bank to fall this year. According to Ed Moya, a senior market analyst at Oanda, the company’s terrible performance on financial markets is a major indicator of trouble. The bank recently revealed that outflows started to rise again, leading its shares to drop 22.7% in a single day, which further extended its recent declines.
PacWest’s shares have now fallen more than 50% this month and nearly 80% for the year. Adding assault to injury, the bank said in a securities filing that its deposits declined 9.5% in the last quarter. “PacWest is starting to look like the weakest link and some traders are wondering if they will fail or have a sale,” Moya revealed.
“Our calculations suggest these banks are certainly at a potential risk of a run, absent other government intervention or recapitalization,” economists with the Social Science Research Network wrote in a new report.
“The recent declines in bank asset values very significantly increased the fragility of the U.S. banking system to uninsured depositor runs,” they noted.
A run on these banks could pose a risk to even insured depositors − those with $250,000 or less in the bank − as the FDIC’s deposit insurance fund starts incurring losses. These institutions represent just a small share of the more than 200 banks that are vulnerable to the same type of risk that took down Silicon Valley Bank.
The potential impact of all of these institutions being at risk at the same time could be significant for the banking sector and the broader economy. If a small number of these banks were to fail, it could lead to a domino effect, causing other banks to fail as well. This could create a nationwide credit crunch, making it even more difficult for businesses and consumers to access credit and slowing economic growth.
The truth is that a single bank run on one of these vulnerable institutions could cause a ripple effect, leading depositors to withdraw funds from other banks as well. That would spark panic on financial markets and the public could lose confidence in the banking system as a whole, a scenario similar to what happened when the Great Depression started to unfold in the 1930s.
It seems that a financial crisis may erupt sooner than we all thought, and we are certainly no prepared to deal with its repercussions. And the companies listed in this video could be the next to break down all around us.
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
Let’s call this what it is, a manipulation into consolidation for further wealth and control by the oligarchs.
Completely agree with that!!!
A number of those banks listed long ago halted basic banking services to consumers —— a sure strategy for self–destruction?!
Why anyone would keep any cash in a bank ( other than working capitol ) is crazy. 3 week T-Bills are paying over 5% right now whereas most all banks are paying 1% or less.