Update (10:30am ET): So much for Credit Suisse thinking it has leverage by balking at the proposed CHF0.25 offer from UBS. Just hours after it was floated that UBS could buy Credit Suisse for $1BN, a proposal which the bank’s shareholders balked at, Bloomberg reported that authorities are now considering a full or partial nationalization of Credit Suisse – an outcome which would wipe out the equity and bail-in bondholders – as the only other viable option outside a UBS Group AG takeover. And yes, 0.25 is still more than 0.0.
According to BBG, “the country is considering either taking over the bank in full or holding a significant equity stake if a takeover by UBS Group AG falls apart because of the complexities in arranging the deal and the short time frame involved.”
Needless to say, the situation remains “very fluid” and is changing by the hour as authorities seek to finalize a solution for the bank by the time Asian markets open, which is late evening in Europe, the people said.
~~~~~~~~~~~~~~~~~~~~~~~~~~
What happens when too big to fail, fails. We are about to find out. Whether Credit Suisse is bought out for pennies on the dollar, nationalized or declares bankruptcy, the fate of Western financial markets is the same. It may take a little longer to collapse depending on the the scenario but we are talking weeks at best.
A collapse will bring WWIII and complete tyranny by Western governments with even more emergency powers. Will the people submit as they did for the COVID-19 medical tyrannical measures?
I am reminded of the 299 Days series concerning the economic collapse outlined in the books. The banks were closed and the “government” said everything was under control; life would be back to normal shortly. As the people patiently waited with hope because the wanted to believe, the eventual solution was implementing Freedom Cards. The government confiscated all private bank and pension accounts as people were given a month stipend on their “F” cards. The more liberal the person, the more money they received with “government” employees receiving a higher monthly stipend.
Does this sound like the digital currency based on ESG scores that the “government” is pushing? We will find out soon as the Asian markets are hours away from opening. If China dumps their US Treasuries tonight, you will wake up to a bankrupt United States. If Credit Suisse is salvaged or not, the end result is the same: the banks will not be saved and the “government” will not let the crisis they created go to waste.
David DeGerolamo
MONKEY!
Step one, nationalize the money, Step two, since the money belongs to the government, they can do as they please. Step three, change this money into that money, from currency and coinage to ones and zeros. Give it a new name, maybe CBDC?
Now, maybe do the same globally after collapsing bank after bank in each country…………
Remember that SVB was a democrat enclave and the “bad actors” that cashed out prior to the failure, might be they knew something was coming…….
Grimly highly probable. But like I wrote earlier about Luke 14 28 Which of you, wishing to build a tower, does not first sit down and count the cost to see if he has the resources to complete it? 29Otherwise, if he lays the foundation and is unable to finish the work, everyone who sees it will ridicule him,…
The chimpanzees playing with the levers and buttons of the world have too much pride and too little wisdom about what they do.
I wonder how the resulting chaos will play out.
Protect your family. Need I post the many scriptures Old and New Testament about that command?
Edit failed. Incomplete thought.
The chimpanzees playing with the levers and buttons of the economy (food, fertilizer, energy and now money) know very little of the troubles they are going to cause themselves.
I wonder how the chaos will play out.
My grand son finished his masters degree in finance, last summer from ISU, he lives in Chicago. I asked him if he learned any thing about the Chicago school of economics, he said no. The school was made famous by the Nobel laureate Milton Freedman, who extolled the virtues sound money and small government! Even the well “educated” know nothing about sound money,
I guess it is just a myth or a conspiracy theory!
My father in law, once he got out of east Germany, taught me much about the Weimar Republic inflation, he even and gave me fifty million worthless marks from that period. Having escaped Stalingrad on the last hospital train, he also taught me about fighting the Russians, DON’T! My wife having growing up in east Germany, but escaped, taught me about the virtues of socialism.
So here we are, rushing towards communism, fighting the Russians and with the inflation that has come home to roost, a great plan for our destruction!
Oh well!
The Chinese can’t simply dump all US paper as it would take them down also. They have been selling Treasuries in chunks for a while but couldn’t disengage completely like Russia. This is because they would have to be ready to stop all Western trade. They have encouraged their people to buy gold and the CCP has been unofficially stockpiling gold and commodities. Soon enough they will be ready to either take down the US, or better, watch it collapse on it’s own. Quite a few smart people I follow think the collapse will start this May and progress over the summer with fedgov a smoking ruin by fall and the States on their own. If that is what it takes to wake people up, so be it.
I disagree. China can dump their US Treasuries and save the money WWIII would cost.