Bank Trouble!

11 Mar

Bank Trouble!

Special Alert Direct From Rich Dad Poor Dad’s Robert Kiyosaki!

My friend Robert Kiyosaki asked me to make sure everybody sees his Red Alert below.  Thanks, Robert, for sharing this crucial information with our friends and clients!

– Jim Clark 

Bank dominos are falling, just as I have been warning you!  Silvergate Bank was first on Thursday.  Silicon Valley Bank was shot down on Friday.  That’s the largest bank failure since 2008.

Will Credit Suisse, the Swiss banking giant be next? 

This is the screaming front-page headline of Friday’s Drudge Report:

The Federal Reserve’s interest rate hikes are starting to exact their toll.  Silicon Valley Bank, the nation’s sixteenth-largest bank, was shuttered by the authorities on Friday morning.  The Federal Deposit Insurance Corporation is now serving as the receiver.

Gold and silver both surged on the news.

That’s because gold and silver are real money.  

The question is whether SVB’s problems will show up elsewhere and cascade throughout the banking industry much like the 2008 meltdown.  Another bank, Silvergate, caught up in the cryptocurrency market, is also closing.  

SVB reportedly took a $1.8 billion loss when it liquidated its $21 billion bond portfolio.  It is worth spending a few minutes on the issue of bond losses.  

Bonds and interest rates can be thought of as two ends of a teeter-totter.  When interest rates rise, the price of bonds goes down.  The Fed’s interest rate increases over the past year mean that bank bond portfolios have losses the extent of which is presently unknown.  

SVB looks like the canary in the coal mine, an early warning of system-wide bank failures.  Don’t be victimized!

Problems like these feed on themselves.  As concerned depositors stand in line to withdraw funds, banks can be forced to sell low-interest-rate bonds for losses.  So not only are the banks losing money on their bond portfolios, they lose depositors as well.  

Here is a chart of a regional bank stock ETF that will make my point clear:

Remember, all this has been foreseeable.  Now it is happening.  Remember that paper is fake money.  Gold and silver are real money!

Good luck,

Robert Kiyosaki

In addition to Robert’s words above, we would like to share with you this video showing how he’s been right many times before!