The third major bank went bankrupt in the US in two weeks

This week could be black for the entire US banking sector. Today it became known about the collapse (third in a row) of a large credit institution in just a week. Moreover, all the already collapsed banks were leaders in the field of cryptocurrencies and fashion startups and served the most important technology companies with turnovers of hundreds of billions of dollars. And the world is talking about repeating the 2008 scenario.

While American savers get wet in the rain, besieging the walls of the bankrupt Silicon Valley, clouds are gathering over the entire global financial system. After three major US banks failed one after the other, trading in Asian and European markets opens with a sharp drop.

“The failure of Silicon Valley shows that the US fiscal policy has failed. The government has raised interest rates, and the bank is faced with a decrease in demand for loans on the one hand and falling stock prices on the other”explained Li Yong, senior fellow at the China International Trade Association.

At the center of Washington’s media agenda is Ukraine. Almost 80 billion dollars have already been pumped there, despite the fact that the American financial system is bursting at the seams right now. Inflation and the fuel crisis are forcing the White House to raise interest rates. And those, in turn, hit the largest banks in the country.

“I’ve been working with bank regulators all weekend to develop appropriate policies in this situation. We want to make sure that the problems that exist in one bank do not infect others”Treasury Secretary Janet Yellen said.

But it’s’ too late. At least four other large banks are on the waiting list for bankruptcy. The total losses of the sector are more than 620 billion dollars. And the problems are only growing. Biden gives an urgent order to his Treasury Department to deal with the mess.

“Every depositor can be sure that he is safe. The money will come from some funds. American taxpayers will not have problems because of bankrupt banks”Biden assured.

The scheme is old. In 2008, it all started with the collapse of mortgage lending (now loans for startups and buying up cryptocurrencies). The characters are not new either. For example, Joseph Gentile, one of the leaders of the collapsed Silicon Valley, was at that time among the top managers of Lehman Brothers, the collapse of which provoked the global financial crisis.

“Given what is happening to our economy, and the sound of proposals for the biggest and dumbest tax increase in US history, Joe Biden will be remembered today as Herbert Hoover. We will have a Great Depression – much larger and more powerful than the one that began in 1929 !” Former US President Donald Trump predicted.

Of course, American bankers themselves have done much to set the dominoes of global financial collapse. Silicon Valley, for example, hired a manager to promote the LGBT agenda, but for the past six months they have not had (and these are basic things) a director, a risk assessment.

“When bank deposits are concentrated in one sector, they are vulnerable. You can’t make money on short-term deposits. And in the startup industry, where any loans are very risky. As soon as they began to lose money, all customers ran to the exits, and the situation went out of under control”Anthony Chan, former chief economist at JPMorgan Chase, said.

Both Signature Bank and Silicon Valley carried out a significant part of the operations in cryptocurrency, kept it in their reserves. And, perhaps, this crisis will hit the entire global crypto market.

“A chain reaction is starting in countries that have invested in America, the United States and related economies. The currency of the United States is used everywhere. And we can expect all sorts of unpleasant events around the world”– says Yuri Myshinsky, Chairman of the Board of the Digital Transformation Association.

But even if everything is so serious, and 2008 will break out again soon, this crisis will hardly hit Russia with the same force. Our economy has become more independent: dollar reserves have been reduced, many trade operations have been carried out in national currencies.

“The Russian banking system is now much better prepared for a full-blown global crisis because we are less dependent on Western financial infrastructure”, – says Associate Professor of the Department of Political Economy of the Faculty of Economics of Moscow State University named after M.V. Lomonosov Maxim Chirkov.

And it is primarily the EU countries that depend on it, which have already been put on the altar of a hybrid war with Russia. What these geopolitical experiments resulted in can be seen in hundreds of such comments (from the “stop feeding Ukraine” series).