A new ambitious concept of success based on crypto, Web 3.0, DeFi and technologies. Fb , Twitter, ig : @2mvisionglobale | follow for your journey đ„Čđ
đ The DCA is a reliable method of crypto investing which consists of investing a fixed amount at a regular frequency to smooth out price fluctuations. đThis allows for positive long-term results by avoiding looking for the best time to invest. #2mvisionglobale
BREAKING: Regional Bank Stocks In The U.S Are Getting Hammered With Many Names Down +30% â This Banking Crisis Isnât Over Yetđš
Unfortunately this regional banking crisis in the United States is gathering momentum after First Republic Bankâs collapse over the weekend.
Remember that this all started with Silicon Valley Bank just weeks ago.
A failure of regulation and poor internal risk-management which triggered large deposit outflows.
Higher rates are now truely being felt by the real economy, with regional banks suffering from large unrealised losses in fixed income portfolioâs and subsequent stock market hits that is exacerbating deposits outflows.
Regional banks are suffering losses on HTM portfolioâs but canât raise deposit rates as that would further hit profitability and lead to more outflows.
Now hundreds of billlions of deposits have been flowing from regional banks to money market funds and larger/safer financial institutions.
How this regional banking crisis stops is currently unclear and so is the end-stateâŠ
Here are some of the regional banking stocks are down are down big today:
PacWest: -35%
Western Alliance: -30%
Metropolitan Bank : -27%
HomeStreet: -23%
Zions Bank: -15%
Citizens Financial: -12%
Here is a very simplistic way that this will ripple through the economy (there are many other implications):
Regional banks collapse â> Banks tighten lending standards â> Credit becomes more expensive â> Firms canât get finance at all or at higher rates â> Firms lay-off employees â> Consumers canât pay their mortgage â> Consumers pull back on spending â> Economy slows â> Banks further tighten lending standards â> Deliquencies â> Forced sales â> More unemployment â> Even higher borrowing costs â> Economy slows further.
The Fed is expected to raise interest rates AGAIN tomorrow by 25bps.
Meanwhile in congress, lawmakers have urged Powell to stop - this just got political.
Over to you Mr Powell, it might be time for a pause.
Btc monthly candle is about to close in 9H, with a big doji. Historical data showing that some uptrends are excepted, which can lead to a big break out of the major resistance at $31K - $33k. Letâs wait and see! #2mvisionglobale