During the 1930s, many banks failed in the United States.
In total, it is estimated that over 9,000 banks failed during this period, with most of these failures occurring in the early years of the Great Depression, between 1930 and 1933.
In 2008 we saw all the big banks receive a bailout from the taxpayer.
The United States 16th largest bank has collapsed, and other regional banks are watching valuations plummet.
While the Federal Reserve’s rate hikes have been motivated by a desire to address inflationary pressures, this has helped cause the big banks in the United States to be sitting on $620 billion in unrealized losses.
Banks purchased lots of Treasuries and bonds when rates were at ZERO.
Coincidently, central banks around the WORLD are now facing significant losses, which will fall on to the taxpayer.
Both Goldman and Barclays say RATE HIKES are OFF the table for March.
When the entire economy is built on cheap money, the blocks are fragile, and with every rate hike, you are pulling at them.
Eventually, things will begin to shake.
This is all happening as more countries seek to trade in local currencies.
What is going to happen next?