Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Saturday, May 6, 2023

Are We Currently In a Financial Crisis?

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Yes. As sole proprietor and managing director of Wolfteam Ltd., I am of the opinion that we are in the midst of a financial crisis even bigger than the Great Depression.

Certainly, the current financial havoc is much bigger than the Great Recession in 2008, I think. Actually, the US Government 'restated' the statistics and years ago, the last time I checked US GDP in 2009 fell by only 3.1 %. A surprisingly low number, Wolfteam is of the opinion.

We just see the surface now with First Republic, Silicon Valley Bank and Signature Bank's assets combined almost at the same levels of assets than Lehman Brothers.

And only since the beginning of 2023 more than 400 billion USD left the US banking system and went mainly into short-term money market funds. And via the multiplication effect, this would mean trillions of USD were withdrawn from the global banking system.

A huge de facto monetary tightening.

This would not be enough, though. 

The Federal Reserve should lead the pack of the European Central Bank, Bank of Japan, Bank of England, The Peoples Republic of China, The Central Bank of the Russian Federation, etc. into mopping up all this excess liquidity.

 

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