Remember when the government unintentionally, incompetently or deliberately destroyed hundreds or thousands of small businesses and drove sales at big box retailers like Target and Walmart to all time highs with their Covid response?
We could be seeing a similar, selective ‘mistake’ here with small banks and the ‘Too Big to Fail’ banks.
Depending on whether uninsured depositors of #SVB are offered some relief, we could see a widespread systemic bank run in nearly all non-systematically important banks.
Depending on whether uninsured depositors of #SVB are offered some relief, we could see a widespread systemic bank run in nearly all non-systematically important banks.
The contagion effects would be economically devastating, but it would accomplish at least one benefit for the US Security State.
By funneling most domestic deposits into a handful of TBTF banks, it makes the rollout of #CBDCs a lot easier to orchestrate.
By funneling most domestic deposits into a handful of TBTF banks, it makes the rollout of #CBDCs a lot easier to orchestrate.
Coordinating the CBDC logisitics for a dozen or so large, centralized banking franchises is much more palpable than trying to do it with thousands of small, regional banks, credit unions and other commercial banking outposts.
I’m not saying this is what is actually happening or going to happen (or even that the depositors don’t deserve some type of haircut for practicing poor risk mgmt)…just that we’ve seen too many ‘coincidences’ and conspiracies in the last 3 years come true to ever trust the… twitter.com/i/web/status/1…
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