Financial ‘death spiral’ ensues as SVB, First Republic, Pac West, Signature Bank all COLLAPSE…contagion continues – zoohousenews.com

(Natural News) If you think the banking collapse will end with Silicon Valley Bank (SVB), think again.

The contagion is already spreading as Americans realize that America’s financial system is a fraudulent Ponzi scheme that will lead to financial ruin for many – especially those whose lives and livelihoods depend most on it.

“I don’t think we’re necessarily going to go back to where we were in 2008, but these things aren’t one-off events,” University of San Diego finance professor Dan Roccato said of the situation.

“I suppose we’ll see a few more of these things pop up.”

Roccato is technically right that things won’t go back to how they were in 2008. If anything, they will be much, much worse when all is said and done with the current banking crisis that has only just begun.

Numerous other banks are already seeing their share prices collapse as depositors withdraw their money and investors sell their shares in anticipation of more blood in the water.

New York’s Signature Bank, which collapsed shortly after SVB, saw its share price plunge 23 percent before halting trading on news of SVB’s demise. Shares of First Republic, the 16th-largest bank in the United States, also plunged 14.8 percent, followed by a 37.9 percent drop in competitor Pac West.

(Related: Will We Witness the “Controlled Destruction” of the Entire Banking and Financial Sector in Real Time?)

The era of cheap cash is over – now the pain begins

The share price of SVB, which has now become Santa Clara’s Federal Deposit Insurance Corporation (FDIC) deposit insurance agency, plunged 44 percent in premarket trading the day after 60 percent of its stock value had already disappeared.

“The monumental sinking of Silicon Valley Bank is the second largest banking collapse in US history,” says a report.

“Its demise on Friday, which left customers fearful of tens of billions of dollars in lost deposits, is only overshadowed by the failure of Washington Mutual in 2008, which was worth $307 billion when it went bankrupt.”

While it’s true that SVB is more of a niche bank than Washington Mutual ever was, its collapse is more of a canary in a coal mine situation. The US economy as a whole has been struggling for quite some time and SVB seems to be among the first to fall.

There are likely to be many more bank failures soon, despite the continued promises from the nation’s “leadership” that all is well and nothing to worry about. If anything, this is the biggest red flag of all that much more misery is to come.

Everything seemed fine in 2021 when SVB deposits roughly doubled. Interest rates were near zero and it seemed like the money printers would never shut down – until they finally did, followed by steadily rising interest rates. During this time, the SVB continued to invest carelessly in government bonds, which they now had to sell at massive losses.

“And while like many banks it was also heavily invested in US Treasuries, rising interest rates meant SVB was unable to cover its books when push came to shove this week,” reports said.

“In doing so, SVB’s start-up customer base withdrew their accounts faster than expected to cover expenses, resulting in a huge hole in the company’s books.”

“On Wednesday, the SVB said it was forced to sell its bond holdings at a loss of $1.8 billion amid cash drain from dwindling deposits. The bank announced plans to ask investors for $2 billion to cover the shortfall.”

The America that many people knew and loved is long gone. To stay up to date, visit Collapse.news.

Sources for this article are:

DailyMail.co.uk

zoohousenews.com