Peter Schiff: The 2023 Financial Crisis Has Begun!
ZeroHedgeMar 15, 2023
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Dow Jones Falls as Credit Suisse Shares Plummet
Last updated Mar 15, 2023
Image credit: FOX NewsFacts
- Credit Suisse shares hit a record low on Wednesday as European banks reel amid investor concerns in the wake of Silicon Valley Bank’s (SVB) collapse last week. The bank’s shares fell by as much as 30.8%, driving a 7% fall in the European banking index.[1]
- The US stock market also took a massive hit as concerns about the global banking industry deepened. The Dow Jones Industrial Average fell 406 points, or 1.3%, while the S&P 500 dropped 1%.[2]
- The Swiss bank’s losses came after its largest investor, the Saudi National Bank (SNB), said it couldn't provide Credit Suisse with more financial assistance. The Saudi lender acquired a nearly 10% stake in Credit Suisse last year, which it can't surpass due to regulatory constraints.[3]
- The CEO of investment firm BlackRock stoked greater worries in a letter warning that the recent collapses of SVB, Signature Bank, and Silvergate Capital could be the first "domino[es] to drop" before a potential "cascade" hits the US banking sector with more shutdowns coming.[4]
- The US Treasury is monitoring the situation surrounding Credit Suisse and is in touch with its international counterparts as the Zurich-based lender has been struggling to contain deposit outflows.[5]
- Amid the turmoil, Swiss authorities and Credit Suisse are holding talks Wednesday to explore different ways to stabilize the financial institution. The Swiss National Bank has reportedly said it will provide the bank with liquidity if needed.[6]
Spin
Establishment-critical narrative
The 2023 financial crisis is here, and it is not surprising that we are in this situation. Unfortunately, government officials are repeating the same mistakes of 2008 by bailing out failed banks and creating programs that will allow banks to acquire capital artificially. We are just at the beginning of a new collapse, and people’s money isn't safe in this financial environment.
Pro-establishment narrative
While there are certainly causes for concern regarding the economy, and banking sector specifically, we are not experiencing a 2008-style collapse, and failed banks are not being bailed out. Regulators are doing their best to secure the funds of depositors while not repeating the mistakes of the past.
