Published By Banyan Hill Publishing | | | | Published By Banyan Hill Publishing | | | | Banyan Nation, One of the most cringeworthy political moments of my lifetime happened almost exactly 20 years ago.
In May 2003, in a made-for-TV moment, President George W. Bush landed on the aircraft carrier USS Abraham Lincoln in a Lockheed S-3 Viking, wearing a flight suit.
He then proceeded to give his infamous “Mission Accomplished” speech, celebrating the end of the war in Iraq.
Well, we know how that went…
The war wasn’t anywhere close to over. It was just getting started, and it actually outlasted Bush’s presidency.
I had that on my mind this week as the Federal Reserve Chairman Jerome Powell gave his comments following this Wednesday’s FOMC meeting.
Powell is far too modest to do something theatrical like land on an aircraft carrier in a fighter jet. But he did imply that his mission was accomplished. His official statement on rate hikes removed the words “ongoing increases,” implying that the end is near.
Both Powell and Treasury Secretary Janet Yellen also made sure to emphasize that the banking sector was sound. Yet they gave no specifics on what they would do if we started to see more banks in trouble.
Instead, they kept it ambiguous as to how they’d protect depositors, if at all. So, Is That It? Has the inflation monster been slayed? And are we already over the worst of the banking crisis?
I’m not so sure. As Mike Carr pointed out last week, the recent turbulence felt more like a “Bear Stearns moment” than a Lehman Brothers moment.
In other words, we’re a lot closer to a beginning than an end.
And about that… Deutsche Bank Might Tumble Like Credit Suisse Deutsche Bank may be the next weak link in Europe following the failure of Credit Suisse. Deutsche’s shares are down close to 20% thus far this year.
But don’t worry. We’ll get through this in one piece.
I’ve been writing for weeks now that you should keep your bank accounts under the FDIC insurance limits of $250,000. You should also sweep any excess cash you don’t plan to invest into T-bill.
And I’m going to keep pounding my first on the table with this advice until this crisis passes.
I also think it makes sense to own a little physical gold. You don’t have to go nuts buying a bunker in Idaho, stockpiling your bullion, canned goods and ammo in it.
But having some coins in a home safe (or a bank safe deposit box) makes all the sense in the world.
If that’s something that would interest you, reach out to our friends at the Hard Asset Alliance. This is what they do!
Now, back to what we do. Let’s see how the team has been navigating the past week. | | | Is this the start of a new 10X boom in oil? Get the unvarnished truth before Charles Mizrahi goes live on March 29. Get full access here. | | | Weekly Recap - How to Navigate the Market After Silicon Valley Bank’s Collapse
Most of the talk about Silicon Valley Bank (SVB) has focused on protecting its depositors. But what about its borrowers? SVB’s demise has forced its former competitors to get more conservative, which means they’re making less credit available to the companies that need it.
- Bitcoin Is Your No. 1 Hedge Against the Federal Reserve
Bitcoin and other cryptocurrencies have a history of volatility. Yet interestingly, even as the market has looked wobbly in the face of bank failures, cryptocurrencies like bitcoin have been rallying — precisely because they are outside of the system.
- Get Ready for the Next 10X Oil Boom
There’s been a lot of talk about risk lately, and with good reason. But let’s not let a little banking turbulence blind us to one of the best opportunities of our lifetimes in energy. If history is any guide, we could see returns of 1,000% in crude oil in the coming years. It wouldn’t be the first time!
- Why the Tech Sector Got Wrecked
There’s a funny thing about business. Owners generally expect to earn a profit. Yet in tech land, that concept seems to have been lost in a world of free money and IPOs — designed to give the founders a payday. Today, we’re seeing the breakdown of that model. And profitless tech is taking the brunt.
- Before You Buy That T-Bond
U.S. government bonds are “risk-free,” right? Not so fast. It depends on how you define risk. The U.S. government may not have credit risk, but buying the wrong bonds at the wrong time can still blow up your portfolio. Just ask Silicon Valley Bank!
Remember to tune in The Banyan Edge podcast on Monday. Mike Carr will be joining me again to handicap the risk that the banking crisis spills over into recession.
Bankers in small towns do the work of keeping America open for business by lending to small startups in local communities. Tighter standards will impact small businesses on Main Street and might finally give the Fed the recession they seem to want so much.
Until then,
Charles Sizemore
Chief Editor, The Banyan Edge P.S. Are you enjoying The Banyan Edge? We’d love to get your take on our research, and we love answering questions. If you have any questions, insights, or just want to leave us a note, please send an email to BanyanEdge@BanyanHill.com. | | | (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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