Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore
Important Takeaways:
- Why we should care about Credit Suisse’s problems
- Credit Suisse, the 167 year-old banking behemoth, is not a domino falling in reaction to bank failures in the U.S. — its troubles are of its own making, and have been cascading for over a decade. Still, its current dire predicament could hardly come at a worse time for the global financial system.
- Why it matters: Credit Suisse is one of just 30 global financial institutions designated as being systemically important by the international Financial Stability Board. In other words, it’s too big to fail.
- By the numbers: Credit Suisse had total assets of $574 billion at the end of 2022 — down 37% from $912 billion at the end of 2020. Its asset-management arm supervises another $1.7 trillion in assets. Those numbers dwarf anything seen at Silicon Valley Bank, which had total assets of $212 billion.
- Between the lines: The balance-sheet problems that took down SVB are probably even bigger at Credit Suisse.
- What they’re saying: Credit Suisse is “too big to fail and too big to be saved,” says economist Nouriel Roubini.
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Revelations 18:23:’For the merchants were the great men of the earth; for by thy sorceries were all nations deceived.
Important Takeaways:
- Dow dives over 600 points as Credit Suisse selloff injects fresh unease into markets
- US stock futures sank Wednesday as worries about Credit Suisse’s financial health revived fears over banks.
- The Swiss bank’s shares plunged 22% in Zurich after its top investor ruled out further support.
- Dow futures fell as much as 600 points premarket as the worries dented US investor sentiment.
- “Investors are now trying to guess which might be the next domino to fall, both in the US and outside it,” IG Group’s chief market analyst Chris Beauchamp said.
- “Contagion is on everyone’s lips, and at present it is too tough to say whether the crisis can be contained effectively,” he added.
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Revelations 18:9-11 “The kings of the earth who committed fornication and lived luxuriously with her will weep and lament for her, when they see the smoke of her burning, 10 standing at a distance for fear of her torment, saying, ‘Alas, alas, that great city Babylon, that mighty city! For in one hour your judgment has come.’ 11 “And the merchants of the earth will weep and mourn over her, for no one buys their merchandise anymore
Important Takeaways:
- Credit Suisse shares fall to all-time low as bank announces it has found ‘material weakness’ – just hours after Wall Street expert predicted that it would be the next to fall after SVB
- Credit Suisse shares fell five percent to an all-time low in early trading on Tuesday after the bank confirmed material weaknesses and an $8billion loss in 2022, just hours after a financial expert claimed it would be the next institution to fall following SVB.
- Last night, Robert Kiyosaki – a metals investor and author of Rich Dad, Poor Dad who accurately predicted the 2008 fall of Lehman Brothers – warned during an appearance on Fox Business, that ‘the problem’ is the bond market, and that Credit Suisse – the eighth largest investment bank in the world- was most vulnerable.
- ‘My prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse because the bond market is crashing. The bond market is much bigger than the stock market. The Fed is up and they’re the firemen and the arson,’ he said.
- On Tuesday morning, Credit Suisse published its annual report which revealed an $8billion loss for 2022.
- Today, Credit Suisse said the ‘weaknesses’ were down to a ‘failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements’.
- Kiyosaki… said the current situation is the ‘perfect storm’, with an entire generation of boomers looking to retire.
- He is also concerned about Biden’s plan to ‘print more fake money’ and inject it into the ‘sick economy’
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