This was supposed to be the regular Composite Liquidity Update, but we have a slightly more pressing problem at hand for the opening of banks and markets on Monday. So I will ditch the CLI for a few days and take a quick look at where we stand in terms of the potential for a systemic meltdown that endangers all of us. Non-subscribers, click here for access.
I’ve been following the financial commentariat on Twitter and elsewhere over the weekend, and the excuse making for the failure of SVB is epic. There are also a few good takes about how the bank’s Held to Maturity, and Available for Sale fixed income portfolios were under water. Non-subscribers, click here for access.
The Dead Bodies Are Finally Rising to the Surface for All to See
OK, surprise, surprise. Non-subscribers, click here for access.
Of course not. There’s no need to get into the particulars of the SVB situation, because it’s merely the tip of the iceberg that we’ve had on our radar for months. I’ve been warning about the dead bodies which would soon be floating to the surface. Well, here we are. Credit Suisse is so far surviving. The Silvergate scam did not, and now SVB (Silicon Valley Bank) has been revealed. Silly con, alright. Non-subscribers, click here for access.
The bank runs have begun. The Fed has an emergency meeting scheduled for Monday morning. Is this the end of QT? It has to be. If not, this will get a lot worse. But if it is, the rally that started in the bond market on Friday could get a lot bigger and that could self mitigate the crisis. Non-subscribers, click here for access.
A lot can, and will happen on Monday alone. Here’s what’s critical for you to know, including what to do to protect yourself if you haven’t already. Non-subscribers, click here for access.
As events race ahead of this report, you can follow an intelligent discussion of those events at the Capitalstool message board starting here as of Sunday evening.
KNOW WHAT’S HAPPENING NOW, before the Street does, read Lee Adler’s Liquidity Trader risk free for 90 days! Act on real-time reality!