CNN Says Quiet Part Out Loud About Bank Collapses 

( CNN International Business Correspondent Richard Quest explained on an episode of “CNN International’s One World” that banks would be hurt much more by the Federal Reserve’s interest rate rise since they own so many government bonds. And they forecast that other banks, especially state and regional ones, will fail. 

Therefore, if hyperinflation were your primary objective, as Quest put it, you would have increased rates by 50 basis points, Quest continued. Yet, the banking industry is now the primary focus for worry. The issue with the financial system is that every bank is awash with government bonds. If interest rates are increased, bond prices will fall. So, even today’s move at 0.25% worsens the situation for financial institutions. 

He then remarked that a lot of banks would no longer exist.  A more significant proportion of local and state banks will need to be acquired or transferred to new ownership. 

A report from The Economic Collapse Blog showed that wealthy people and major corporations have already begun withdrawing billions of dollars from banks, and far more money will be withdrawn in the coming days. 

What will these banks’ lending strategies be now that they are losing deposits at an extraordinary pace?  It goes without saying that they will be very risk-averse right now. 

And it means banks will be far more selective in who they lend to. 

Elon Musk recently tweeted that the banks were “Melting” in response to Joe Biden’s post praising the Obama administration’s achievements.  Musk was absolutely right, according to the report. There is no doubt that our banking system is melting down as hundreds of financial institutions face imminent danger. 

The Federal Reserve raised interest rates again this week, almost guaranteeing that plenty of financial institutions will soon be on the verge of collapse. 

According to CNN’s Richard Quest, these government bonds are crammed to the gills in our banks,  and when interest rates rise, the value of these bonds decreases.