Moody’s downgrades US banking system to ‘negative’, citing ‘rapidly deteriorating operating environment’ – zoohousenews.com

(Natural News) Before the Silicon Valley Bank (SVB) collapse, Moody’s Investors Service rated the US banking system as “stable.” Since then, Moody’s has downgraded US banks to negative status, citing a “rapidly deteriorating operating environment.”

Despite regulators’ “best efforts to prop up the industry,” to quote CNBC’s Jeff Cox, America’s financial footing is crumbling — which is no surprise since it has always been a Ponzi scheme built on deceit and malevolence.

Moody’s, one of the “Big Three” rating services, is setting the stage for the final and inevitable collapse of the US banking sector. One could even say that the banking sector has already collapsed, although those in power still hide the debris from the public as much as possible.

“We have revised our outlook for the US banking system to negative from stable to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank and Signature Bank (SNY) and the collapses of SVB and SNY ‘ said Moody’s in a report.

(Related: According to fake president and lunatic circus clown Joe Biden, America’s banking system is doing fine.)

Will it take months, weeks or just days for the US banking sector to collapse?

Moody’s announcement came after the company warned that it would either downgrade or recommend a downgrade to about seven institutions so far. In addition to SVB, SNY and Silvergate, other institutions under review for potential downgrades include First Republic, Intrust Financial, UMB, Zions Bancorp, Western Alliance and Comerica.

There are probably many more banks with massive unrealized losses that are also on the hook, having been buying Treasuries and other government bonds when interest rates were near zero. Since then, the Federal Reserve’s Jerome Powell has gradually hiked interest rates, sending the value of those bank bonds tumbling.

“Banks with significant unrealized securities losses and with non-retail and uninsured US depositors may still be more vulnerable to depositor competition or eventual flight, with adverse effects on funding, liquidity, earnings and capital,” Moody’s warns.

Despite the downgrade and the associated canary in the coal mine, numerous bank stocks rose this week. That’s because Wall Street casino is now completely detached from reality – and has been for many, many years.

You can be sure that the Ponzi scheme will eventually become visible to the whole world. You can only keep the ruse going until the whole thing unravels – but in the meantime the circus will continue.

“We expect pressures to continue and be exacerbated by continued monetary tightening, with interest rates likely to remain elevated for longer until inflation returns to the Fed’s target range,” Moody’s said.

“US banks are also now facing soaring deposit costs after years of low funding costs, which will hurt bank earnings, particularly banks with a larger proportion of fixed income assets.”

Although the United States technically entered a recession last year using standard metrics and methods, the Biden regime changed the definition of recession to exclude the current economic crisis. Moody’s estimates that a “recession” according to Biden will hit the country later this year.

“Biden may not know it yet, but he’s a designated fall guy for bankers,” a Natural News commentator suggested.

“The Federal Reserve has been shorting the US economy since its inception in 1913. The Federal Reserve has staged disaster after disaster. The Federal Reserve should have been closed like it was a hundred years ago.”

Will the America we know today still be recognizable a year from now? Learn more at Collapse.news.

Sources for this article are:

CNBC.com

zoohousenews.com