Discussion: Economic, banking and financial market disruptions
- Chuck Pierce “We have a golden calf in NY”
- What’s wrong with the USA’s financial, banking and economic system today?
- Is it time for a “new breed” of banking/financial system using biblical principles?
- Unprecedented debt levels
- Fed Reserves’ actions Sunday March 15th, 2020 unprecedented and what it portends for future failures and bank runs.
- 0% bank reserve requirement (banks can lend with no vault cash – hides which banks are technically insolvent)
- 0% fed funds rate
- 0% discount window rate (hides which banks are technically insolvent)
While it’s expected to taper, the Fed is on pace to own 100% of US debt, public, private, real-estate backed, etc. inside 12-24 months at this rate of purchase
VIX (fear index) all time high of 82 next day, equity markets reach new lows
- President Trump and Secretary Mnuchin recently stated: Small Business is the backbone of the American economy
- Is it anymore? And what does the decline of small business mean for the future of the US economy?
Many large publicly traded companies got caught taking the PPP SBA loans (Shake Shack $10m, Ruth Chris $20m, Autonation $77m)
https://nypost.com/2020/04/27/only-13-companies-have-said-they-will-return-coronavirus-loans/
