Market Review and Trends
US Financial System Maybe On Brink of Collapse- Run On Bank Contagion Risk.
By Investment Income for Life  •  March 12, 2023
What a week it has been which culminated with the collapse of 2 US banks within a week. The collapse of Silvergate Capital Corp followed by the Silicon Valley Bank ("SVB") is absolutely shocking. It does not help when US Treasury Secretary Janet Yellen said that she is monitoring "a few banks very carefully” and that it’s a “matter of concern” that banks such as SVB Financial are experiencing financial losses. The monitoring "a few banks very carefully" remark certainly does not calm the market but further eroded market confidence in the US financial system. This could ended up worse than 2008 and rival the Great Depression in 1937 if the US Treasury and Federal Reserve failed to instill confidence and resulted in nightmarish bank runs (trademark of the 1937 economic collapse) by depositors.
  1. What happened to SVB? To put it simply, SVB has been screwed badly by the relentless interest rate hikes that eventually caused
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By Investment Income for Life
I am an Accountant by training and is currently working in a global MNC in the Supply Chain industry. During my free time, I enjoy reading up on topics such as stock investing, insurance planning and property investment. Since 2012, I have started penning down my thoughts on certain financial matters while striving to achieve financial independence.
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