{"id":19186,"date":"2023-03-27T19:15:01","date_gmt":"2023-03-27T19:15:01","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/experts-predict-more-bank-failures-in-the-us-following-interest-rate-hike-and-unsettled-banking-crisis-economics-bitcoin-news\/"},"modified":"2023-03-27T19:15:01","modified_gmt":"2023-03-27T19:15:01","slug":"experts-predict-more-bank-failures-in-the-us-following-interest-rate-hike-and-unsettled-banking-crisis-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/experts-predict-more-bank-failures-in-the-us-following-interest-rate-hike-and-unsettled-banking-crisis-economics-bitcoin-news\/","title":{"rendered":"Experts Predict More Bank Failures in the US Following Interest Rate Hike and Unsettled Banking Crisis \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After the recent bank collapses in the U.S., a number of people believe that more failures are coming following the Federal Reserve\u2019s increase of the benchmark interest rate by 25 basis points (bps). American journalist Charles Gasparino insists that Wall Street\u2019s \u201clow-rate\u201d junkies are ignoring the U.S. banking crisis. Quill Intelligence CEO Danielle DiMartino Booth asserts that the banking industry is facing problems that \u201cnobody wants to call a banking crisis.\u201d<\/strong><\/p>\n

Ignoring the U.S. Bank Crisis<\/h2>\n

There have been numerous <\/span>opinions<\/span><\/a> and <\/span>statements<\/span><\/a> from financial experts and officials following the failures of three major U.S. banks. All four major benchmark stock indexes ended the day in the green on Friday after the Federal Reserve <\/span>raised<\/span><\/a> the federal funds rate by 25 basis points two days earlier. Journalist, radio host, and financial commentator Charles Gasparino wrote an opinion editorial over the weekend that claims the \u201cmodern-day stock market is an addict.\u201d Gasparino believes that higher rates are \u201cpainfully exposing\u201d a \u201crot inside the banking system.\u201d<\/span><\/p>\n

He adds that commercial bankers took \u201cwild gambles,\u201d and the failures of Silicon Valley Bank and Signature Bank highlight the issue. \u201cThere will be others, as many as two dozen, I am told,\u201d Gasparino explains. \u201cAll have balance sheets remarkably similar to SVB and Signature. If things continue to go south, they are ready to fold, too, guaranteeing a steep recession.\u201d Coincidently, a <\/span>paper<\/span><\/a> published on March 13 by researchers at New York University shows that U.S. banks had unrealized losses of $1.7 trillion in Dec. 2022.<\/span><\/p>\n

The reporter\u2019s <\/span>opinion editorial<\/span><\/a>, published by the New York Post, also mentions First Republic Bank, and he insists that First Republic \u201cmade some of the same horrible portfolio choices as SVB.\u201d Gasparino doesn\u2019t believe people should \u201ctrust the addicts trading stocks.\u201d Gasparino compares the recent stock market rally on Thursday and Friday to the \u201cstupefied giddiness of a junkie who just got his fix whenever he hears lower rates are in the offing.\u201d While traders may be wishing for lower rates, Fed chair Jerome Powell <\/span>recently stressed<\/span><\/a> that \u201crate cuts are not in our base case,\u201d and he insisted that \u201cinflation remains too high.\u201d<\/span><\/p>\n

Author and CEO of Quill Intelligence, Danielle DiMartino Booth, envisions more bank failures to come as well. Booth <\/span>discussed the subject<\/span><\/a> with Kitco News lead anchor Michelle Makori, and she mentioned the issues surrounding the commercial bank First Republic. Booth noted that \u201cwe have not seen the biggest banks step up,\u201d and many of these troubled banks are \u201csitting in no man\u2019s land.\u201d Further, Booth claims a precedent has been set after the Federal Reserve, Treasury, and Federal Deposit Insurance Corporation (FDIC) bailed out SVB and Signature. <\/span><\/p>\n

\u201cThe precedent has been set, and it cannot be unset,\u201d Booth told Makori. \u201cAs regulators, it\u2019s not your job to pick winners and losers, but that\u2019s the corner the [U.S. government] backed themselves into when they backed all of the uninsured deposits of Signature and SVB. We\u2019re in the middle of a banking crisis that nobody wants to call a banking crisis,\u201d Booth concluded.<\/p>\n

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\nTags in this story
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Assets<\/a>, Bailouts<\/a>, balance sheets<\/a>, bank collapses<\/a>, Bank crisis<\/a>, bank failures<\/a>, bank issues<\/a>, Banking<\/a>, banks<\/a>, Charles Gasparino<\/a>, commercial banks<\/a>, credit<\/a>, Danielle DiMartino Booth<\/a>, debt<\/a>, deposits<\/a>, economics<\/a>, Economy<\/a>, failures<\/a>, Federal Reserve<\/a>, Finance<\/a>, Financial Crisis<\/a>, inflation<\/a>, interest rates<\/a>, Investments<\/a>, Investors<\/a>, lending<\/a>, liabilities<\/a>, Losses<\/a>, Michelle Makori<\/a>, Portfolio<\/a>, profits<\/a>, Quill Intelligence<\/a>, Recession<\/a>, Regulation<\/a>, Regulations<\/a>, risk<\/a>, Stability<\/a>, Stock Market<\/a>, trading<\/a>, Wall Street<\/a><\/div>\n<\/div>\n

What do you think needs to be done to prevent further banking crises in the U.S.? Let us know what you think about this subject in the comments section below.<\/strong> <\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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