Prepare For Bank Runs As The Fed Printed More Money than The Chinese GDP in last Month Alone
The Banks are in trouble because people are defaulting on their loans.
If people aren’t earning as much money as they were when they were working, especially small businesses, they’re not paying their loans. So, the banks are not getting interest payments. They’re getting defaults.
In fact, there was already trouble in the subprime markets before the pandemic. Both subprime credit card and auto loan defaults were rising. That will only increase with millions of people suddenly unemployed.
The Bankers are staring into an abyss. The Problem is Main Street just doesn’t know it is staring into the same abyss.
Even when the economy is overheating, banks are insolvent by design. The more insolvent they are, the more they fleece the sheep.
It is all perfectly legal, of course.
Now people are starting to realize that they have been funding compulsive gamblers with unsecured loans at perhaps twenty-five percent interest rate on their bank deposits .
And when you realize that governments have made this all legal and that they have pushed through bail-in legislation to protect the taxpayer from bank insolvency, do you trust your government to do anything that is for your benefit?
We are wearing masks, But it is the banks doing the robbings.
The financial sector is the key to the US economy. They shouldn’t be, but they are because we have a bubble economy. We have an economy based on credit, based on debt. So, not people spending the money they earned, but spending the money they didn’t earn, but they borrowed.