Something major has occurred at Bank of America, raising serious concerns. Reports emerged during the National Day holiday that numerous depositors found their accounts wiped to a balance of zero, while their credit card accounts remained untouched. This baffling situation prompted a wave of confusion and anxiety, especially since Warren Buffett had already started pulling away from his position in the bank months earlier.

Bank of America initially attributed the issue to a power outage, others speculated a system update, and some even suggested a potential hacker breach. However, the idea that only deposit accounts were affected while loan and credit accounts were untouched seems suspicious. How can one bank experience such selective power disruptions? It raises the question of whether this is a deliberate attempt to mask a larger issue.

Adding fuel to the fire, the cost of Bank of America's credit default swaps has spiked sharply, signaling growing fears of default risk. This situation is eerily reminiscent of the events leading up to Lehman Brothers' collapse in 2008. Many are now speculating that the U.S. banking sector is on the verge of a similar crisis. The Federal Reserve's recent decision to slash interest rates by 50 basis points reflects their urgency to address the brewing storm, but some believe it might already be too late.

Warren Buffett's actions provide a telling sign of the underlying risk. Since July, he has been steadily reducing his holdings in Bank of America, with his stake now nearing a critical threshold. If he drops below 9%, his selling activity could accelerate, sending shockwaves through the market. Furthermore, Buffett has reportedly been offloading substantial portions of his Apple holdings, and now sits on approximately $320 billion in cash. This paints a grim picture of the U.S. stock market’s near future. A financial crisis, potentially mirroring the 2008 subprime mortgage meltdown, could be on the horizon, with the banking industry at the epicenter.

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