$517,000,000,000 in unrealized loses hits US Banking System as FDIC warns 63 lenders on brink of insolvency
(twitter.com)
ECON & BANK COLLAPSE 💸
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The US government steps in and "assists" with the sell off of assets to another bank...likely JP Morgan. Then you start sending them your monthly mortgage payment.
What happens when all banks go under?
The FDIC steps in when a bank fails and takes over. The system is designed so that not all banks would fail at one time.
Hypothetically, if it did happen, it would be great depression 2.0. But, things would be hell for 3 days till the feds could get the banks taken over. No funds can move during this time, so you can imagine how everything would come to a standstill. You could also expect riots and looting.
10 days of darkness. No banking, things going crazy. Then at the end, people will see how crazy things are and will insist on putting President Trump back into office immediately.
That is a scenario I've considered when attempting to explain that Q post. Trump said many times during the past election and after Biden stole the white house, that the economy would crash under him. It's been bad, but the big crash has yet to happen.
Banks also would not accept checks from other banks even bank checks. The banks would take the check but you would have to wait until the checks cleared. They would take a week or two to clear. Maybe even longer. Banks would not trust other banks.
Right. It would take a while before things would get "operational" again.
Most are diverse funds, even if they get raked on their GME positions. There will be sell offs to cover. Their investors will lose their asses and those managers will get fired.
Insert "And its gone!" Meme.
Also...if it actually wrecked the bank, don't be surprised if the feds do another bank bailout.
JP Morgan is not in great shape either.
That is good news, imho
But... does the cash you have in checking, savings, CD's, etc. also go to the new bank? I am wondering if I should pull what little I have out, and let the debts that I've needed to incur just end up where they end up.
Keep current for now. They will print for a while to keep it afloat. 517 billion seems like a lot, but remember we spend twice that every 90 days
Thanks!