LIQUIDITY CRISIS in 3…2…1

If you’ve been reading our posts for any length of time, you know how we’ve been harping about how a liquidity crisis will spark the Sovereign Debt Crisis.

 

Cue up: The Liquidity Crisis from Japan

 

While we lick our wounds from the DOW being down 1,033 points (2.6%), S&P down 160 points (3.00%), and the NASDAQ down 576 points (3.43%) … the TOPIX Index (Japan’s top 150 companies) plunged by 12% in its worst performance since 1987.

And it is now down a total of 25% from its high in July.

 

Ironically (or NOT) sharp moves like this carry major implications – not just for Japanese investors and firms around the world – but they ensure we will have a liquidity crisis probably in August/September.

 

So, if you have been reading our monthly newsletter you should not be surprised at the events unfolding because of a global liquidity crisis.

In the January 2024 edition of “…In Plain English” we wrote:

 

It is obvious to us that the banking crisis of 2023 is well concealed.

But that does not mean it will go away any time soon.

 

In fact, the problems coming in 2024 looks like it will make 2023 pale by comparison.

 

A Major Liquidity Crisis Brewing

 

It was possible for a federally-insured bank to lose 85 percent of its deposits in the span of 48 hours in the digital/social media age.

These Uninsured Deposit Concentrations at Wall Street Mega Banks prompted the following stories that (for obvious reasons) flew under the radar:

 

 

November 14, 2023: The Deposit Insurance Fund Has a Balance of $117 Billion to Protect Deposits at 4,622 Banks. But One of Those Banks Has $1.4 Trillion in Uninsured Deposits

May 11, 2023: At Year End, 4,127 U.S. Banks Held $7.7 Trillion in Uninsured Deposits; JPMorgan Chase, BofA, Wells Fargo and Citi Accounted for 43 Percent of That

 

So much for the “Security of your $250,000 FDIC insurance.”

 

Bottom line here?

 

The carnage is far from over.

 

 

 

 

And, as expected, all the FED haters out there, are claiming that the Fed waited too long to cut rates, leaving the US on the brink of recession.

 

But the truth is cutting rates has NEVER even once prevented a recession.

 

This entire liquidity crisis will have waaaaayyyyy more influence than the FED.

Don’t get freaked out about it and make costly decisions out of fear… it’s what the BOYZ hope you do.

Instead, look for opportunities to prosper AND thrive in Turbulent Times in our August newsletter (HERE).

Share this with a friend…even if they blame everything on the FED.  They’ll thank YOU later.

 

And tell them:

 

We’re Not Just About Finance

But we use finance to give you hope.

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