You know your monetary system is in trouble when even the banks lose money. What most people don’t realize is that this is a feature, not a bug, of a fiat currency system. A house of cards analogy is quite appropriate here.
The second-largest Swiss bank (although it’s probably far smaller now) posted a fifth-straight quarterly loss of 1.39 billion Swiss francs ($1.5 billion), worse than consensus estimates of a 1.14 billion loss as revenue of 3.06 billion Swiss francs also handily missed expectations of 3.35 billion. But while the operating loss was hardly a shock for a bank which has been in a constant state of chaos and turmoil, what stunned analysts was what KBW analysts called a “quite staggering” level of customer capital outflows which hit a record 110.5 billion francs in the quarter, and although the bank said that some money has been coming back, it also concedes it’s now at a worse starting point for 2023.
Huh. Yet one more “consensus” is incorrect…
I just got an ominous notification from Vanguard reminding me that my accounts carry NO FDIC insurance protections. The message felt really odd … like an early WARNING of something ominous coming. Something that has made me SERIOUSLY consider transferring substantial assets to several insured banks.
I have bad news for you. The “Deposit Insurance” has little value. It won’t be there for you if there are serious defaults. The well is dry.
The last few years disabused many of us in the middle class of the thought there’s anyone out there who will come to our aid. The interest hikes drove it home.
You might want to consider putting your fiat currency into shiny money and keeping it away from the banks.
That or put it under the mattress.
Home invasions … IN THE MIDDLE OF THE DAY … in OCCUPIED HOMES !!!! are booming in my formerly quiet crime free upper upper middle class town. Better go with a hidden safe in my crawl space or something.
2 big female rotis will buy some piece of mind if you can’t do a Baldwin.
Beefing up the front door and window bars can help too, slows em down while you prepare.
Need to harden the structure.
No … I need a convenient holster for my 9mm. Already have the Baldwin full mortise locks. Wrong neighborhood for window bars … but … that might change
Window film might help, Kenji?
Ballistic window film … I LIKE that!!!
People are moving their money to countries that aren’t self-destructing. Who knew?
which countries would those be?
Credit Suisse is the poster child for how not to run a bank, it’s not the most corrupt entity out there, but it is trying for the title.
https://www.swissinfo.ch/eng/where-did-it-all-go-wrong-for-credit-suisse-/48269536
Interesting link, thanks. Your comment reminds me of a book I’m currently reading, Flash Boys by Michael Lewis (he wroteThe Big Short). It’s about high frequency trading and the name Credit Suisse comes up often and not in a positive sense.
https://www.amazon.com/Flash-Boys-Michael-Lewis-audiobook/dp/B00ICRE1QC/ref=sr_1_1?crid=23IC4H24IRIW1&keywords=Flash+Boys&qid=1675962444&s=books&sprefix=flash+boys%2Cstripbooks%2C125&sr=1-1
They should change their name to something more reflective of their situation:
“DisCredit Suisse” ! 🙂
My brother wrote software for the banking system in Switzerland some years ago, this surprises me not in the least.
Last quarter of 2022
Deutsche Bank’s Dealmakers Suffer Worst Quarter Since Lehman, Investment banking revenue slumps to lowest since 2008, Losses on leveraged loans and an equity position erase revenue
This is what happens when the euro banks set below 0 interest rates for a decade since the 2008 financial crisis…
Cheers
Hans Rupprecht, Commander in Chief
1st St Nicolaas Army
Army Group “True North”
So they’ve lost money in 5 straight quarters and are still giving out bonuses?