More Banks on the Edge!

28 Aug

More Banks on the Edge!

Gee, you don’t suppose it would be a good idea to take money out of the bank and put it into gold?

Banks aren’t getting any safer!  More are getting creditworthiness downgrades; more are being put on troubled bank watch lists.

It was only a couple of weeks ago that we shared the news that leading credit rating agency Moody’s cut the credit ratings of 10 banks.  At the same time, it put 4 of the 15 largest US banks on a watchlist for possible downgrades.

Well, move over Moody’s.  Because now one of the other major credit rating agencies, S&P Global, has cut the credit rating of five banks, and cut its outlook on other banks to negative.   More details from Wall Street on Parade here.

So, it looks like the problems we saw with Silicon Valley Bank and Signature Banks last March may be just the tip of the iceberg.

It’s not just that deposits are pouring out of banks as investors seek higher and safer yields.  There is also the spreading commercial real estate problem that we have warned of.  S&P says, “Banks with material exposures to commercial real estate, especially in office loans, could see some of the greatest strains.”  

And we should not forget that Fitch just downgraded the sovereign debt of the US government as well.  In fact, Bank of America analyst Michael Harnett points out that US government debt will rise by $5.2 billion every single day for the next decade!

Ron Paul says the latest downgrade of US debt should be a wake-up call:  

The failure to take seriously the threat to the American economy caused by reckless federal spending is illustrated by the reactions to the credit rating agency Fitch’s downgrade of the US government’s credit rating. Instead of treating it as a wake-up call, government officials like current Treasury Secretary (and former Federal Reserve Chair) Janet Yellen dismissed the downgrade as “arbitrary and based on outdated data.”

The consumers are not in great shape either, at least judging by their skyrocketing credit card debt.

Troubled banks.  Troubled government.  Troubled consumers.  That’s pretty much a trifecta!

What can you do?  Steer clear of banks.  Don’t get lulled to sleep by government assurances that it will get things under control.  And don’t expect to get bailed out if you get into debt trouble.  Bailouts are for Washington’s cronies only, not for you.

You must take steps to protect yourself.  The place to begin is with silver for personal protection and gold for wealth protection.  Take advantage of today’s prices to establish a sensible gold and silver portfolio.   Speak with a Republic Monetary Exchange precious metals professional today!