What is a level of U.S. debt that financial markets think is too large? The answer is “we have no idea” because it will depend on what is going on around the world and where else investors could park their money, said Maya MacGuineas, the president of the Committee for a Responsible Federal Budget, a […]
Professors studied 2000 bank crises since the 13th century. Last year’s matched those that were more severe than average – unfolding over 3 years. It’s premature to feel relief as we approach the first anniversary of Silicon Valley Bank’s collapse. Silicon Valley Bank’s bankruptcy in early March was the largest bank failure in the U.S. since the
A Banking Crisis Could Be Closer Than You Think Read More »
Everyone thinks that we’re past the banking crisis. The Fed went from lending $60 billion to unstable banks in March to over $100 billion. “But the utilization of the BTFP is almost twice as much today than it was during the height of the banking crisis in March of 2023,” Gammon told Michelle Makori, Lead
Why the New Banking Crisis Could be Unleashed as Soon as March Read More »
A Fitch Ratings analyst on Tuesday warned the agency may be forced to cut the credit ratings of more than a dozen banks, including some major Wall Street lenders. Another one-notch downgrade of the industry’s score, to A+ from AA-, would force Fitch to reassess ratings on each of the more than 70 U.S. banks it
Fitch Warns Multiple US Banks Face Credit Downgrade: Report Read More »
Fitch Ratings’ decision to strip the U.S. of its triple-A credit rating last week was widely dismissed as meaningless This time, though, bond yields rose. That suggests Fitch’s action deserves our attention, not because it tells us anything new but because it joins the stack of evidence of how profoundly different, and risky, the nation’s fiscal situation
Why Fitch’s Downgrade Matters Read More »
Gold prices have jumped 8% since the collapse of Silicon Valley Bank. Investors have flocked to gold as a safe haven with banking turmoil weighing on other assets. The de-dollarization movement has also helped to fuel gold’s recent rally, according to a report by the World Gold Council WGC) published last week. The WGC found
Gold Closes in On an All-Time High Thanks to De-Dollarization and Banking Uncertainty Read More »
