Yesterday was a watershed event when the FED walked in to the SVB bank and closed its doors. Last traded at $35 before the doors were closed and trading halted.
52 Week Range
100.00 – 597.16
They haven’t done this since the banking crisis of 2007-8. What happened? Simply put, the bank had a run on deposits.
They were highly leveraged, assets they had needed to be turned into cash, problem was their conversion price was worth a whole lot less than their original purchase price. This set off a string of losses on Wall street, with many bank shares sharing in the dive.
However, the flight to safety was evident as the price of gold shot up $38 per ounce. As we previously advised to buy gold as an insurance policy against the day that will come, which is a monetary collapse of Fiat currency.
Many question remain unanswered, for instance how many banks remain on the BRINK? Also, will the FED learn from this? If so, will they reduce the expectation of another 50 basis point rise? Currently we are on the cusp of 5%. Territory that has not been seen since 2000 or there abouts. Is the stock market in for more losses or has it bottomed? When there is blood in the streets, it is time to buy. Have we reached that point yet? And how about China, Russia, Ukraine, Iran and Israel? Are we ready for war? All of these questions will be answered in due time. That is for sure.
"Where Revolution is the Solution" Taking back the Empire