Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | JPMorgan CEO Warns Us About Banks π¦ By Charles Sizemore
Chief Editor, The Banyan Edge | Banyan Nation, This promises to be a busy weekend. Will we get to the office Monday morning and find that yet another bank has failed?
Well, we can’t rule it out.
PacWest, the latest bank in the crosshairs, announced that they lost 9.5% of their deposits last week due to customer flight. The shares closed Thursday, down 23% after being down as much as 34% intraday.
There seems to be a pattern. Bank failure becomes a self-fulfilling prophecy, as fear encourages depositors to pull their money … thus creating yet another failed back.
We probably won’t see the system come undone like it did 2008. But I don’t believe we’ve seen the last bank crumble this year.
And this domino effect is getting expensive for the banks still standing. The FDIC, eager to recoup the $16 billion it spent bailing out Silicon Valley Bank and Signature Bank, is charging a special assessment fee of 0.125% on all uninsured deposits over $5 billion.
Reuters reported that the charge will shave about 3% off earnings per share of America’s biggest banks.
This is after just two bank failures. If that list continues to grow, then so will the pain doled out to the remaining banks.
And the banking sector has enough to worry about as is. With the debt ceiling fiasco no closer to resolution, none other than Jamie Dimon, CEO of JPMorgan Chase, has been warning of panic in the financial markets.
In the event the U.S. defaults, or even comes close to defaulting, Dimon doesn’t expect a default for JPMorgan.
He thinks the panic leading up to a national default will be enough pressure for Congress to act. But he’s worried enough to prepare his bank for the possibility.
And yet, this market is still filled with incredible opportunities for profit.
So let’s see what’s this week had in store for The Banyan Edge… | | | Expert warns: “Thinking that wind and solar can ever replace traditional fuels is an exercise in magical thinking.” Sensational new analysis shows why… Watch it here now. | | | Weekly Recap  - Do We Really Need Banks?
The banking crisis isn’t over, at least for the small and regional banks. But here’s a novel thought: Do we actually need regional banks, or has the new fintech available on your smartphone already made them expendable?
And perhaps the biggest question of all … might this developing technology be leading to replacing the U.S. dollar as the world’s reserve currency?
- #1 Sector for END of the Bear Market
It’s still looking iffy out there, particularly in the financial sector. But tech stocks have been rallying for months. And it looks like the worst is over for growth segments of the economy.
Which sector is best poised to lead on the way up? Watch this free webinar to find out.
- Do Less and Make More Money
Warren Buffett is widely considered the greatest of all time — the GOAT, if you will. And his Berkshire Hathaway investors have made 3,787,464% gains under his 58-year tenure.
But here’s the thing. Those returns didn't come from having alot of winning investments.
According to Buffett, it came from about a dozen “truly good decisions.” If you do the math, that works out to about one great decision every five years. But here’s one good decision you can make right now for your investing goals.
- Why a Recession Is Inevitable
Wartime economies almost always give way to recession and inflation. And the “war on COVID” will be no exception. We already see the inflation. It’s inescapable in our daily lives.
But the recession has been slower to hit, precisely because leaders were intent on keeping the “wartime” economy going as long as possible. Now is the time to prepare…
- 3 Hedges for the Dollar’s Downfall
Just within the last six months, countries outside the U.S. are trying to wean off their reliance on the dollar. This includes China, Russia, Iran and more. Here are three ways you can prepare (and profit) for “de-dollarization,” or the inevitable fall of the U.S. dollar.
(Hint: one of them is investing in gold.)
Stay Tuned: A Key Industry Disruptor in 2023!  Apart from the banking crisis, the biggest issue facing the market continues to be inflation … which is proving to be a tough nut for the Federal Reserve to crack.
Despite the most aggressive tightening cycle in the central bank’s history, the unemployment rate continues to fall. It now sits near multidecade lows at 3.4%.  (Click here to view larger image.) Rising wages and a general labor shortage are both major contributing factors to inflation. The problem is, there’s not much the Fed can do. The workforce itself — the pool or potential workers companies have to choose from — is no longer growing due to the aging of the Boomers and the relatively smaller size of Gen Z.
So what fixes this problem?
Artificial intelligence.
You’ve been hearing about this from Ian King: AI is a major industry disruptor in 2023. It's been infiltrating graphics, music and social media, and is spearheading the trend of automation on a global scale.
Even Wendy’s is already experimenting with having an AI chatbot man the drive-through window. This isn’t science fiction. It’s real life, and it’s happening today.
Amber Lancaster will be joining me on Monday’s episode of The Banyan Edge Podcast to talk about AI, and the phenomenal investing opportunities it presents.
You won’t want to miss this one, so stay tuned!
Until then,
Charles Sizemore
Chief Editor, The Banyan Edge | | | He threatened to do it. And a sensational report in the Daily Mail claims he did. The truth is uncertain. But what is certain is that Biden declared WAR on fossil fuels … and has put the future of America in grave danger. Click here for details. | | | Get The Banyan Hill App And start experiencing that "total wealth" freedom for yourself. | | | (c) 2023 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 866-584-4096) Legal Notice
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