Credit Suisse is not the only major bank whose price-to-book is flashing warning signals. The list below is of all G-SIBs with PtBs of under 40%. A failure of one of them is likely to call the survival of the others into question.
Alasdair Macleod
15.3K posts
Alasdair Macleod
@MacleodFinance
Educator for sound money and demystifying finance and economics. See alasdairmacleod.substack.com
- The collapse in Credit Suisse's share price is of great concern. From $14.90 in Feb 2021, to $3.90 currently, markets are saying it's insolvent and probably bust.
- Overnight in Asia gold rose to $2860. Asia is now cleaned out, Comex participants demanding physical, London is cleaned out, and there's a run on the Bank of England's vault. 53 years of fiat is coming to a shuddering halt!
- If the Bank of England is having large quantities of leased gold leaving its vault to be sold into the market, how are the lessees going to return it at the end of the lease?? Alarm bells should be ringing in every central bank leasing gold: when it's gone, it's gone!
- China is recommending businesses use yuan and counterparties’ currencies to settle international payments bypassing USD. Commodity imports will be de-dollarised. Taken with Russian insistence on rouble payments this is a major step against USD hegemony.
- Zelensky could end the war by agreeing to not join EU and/or NATO. That is clear from Lavrov's statements. The problem is US will not permit ceasefire. So Putin is intensifying attacks. It is now a war between US and Russia played out by killing Ukrainian citizens.
- Shorting Bitcoin could be the most profitable way to play this bear market
- Yesterday, we had confirmed the most important monetary development since Bretton Woods 80 years ago: BRICS and SCO will adopt a gold standard for trade. This is over 50% of global GDP on a PPP basis, and 64% of the worlds population. $,£,€ and yen will be toast.
- The euro won’t stop falling until ECB raises interest rates. ECB won’t raise interest rates because the euro system will collapse. Ergo, euro won’t stop falling. See my article for Goldmoney next Thursday!
- The bullion bank silver short on Comex is about 100m ounces and there is no liquidity in London. It won’t take much to put a rocket under the price, as we are now seeing. Could destabilise all PM contracts.
- Gold closed today within $5 of all time closing highs and no one is interested! This really is the most bizarre situation I've ever come across in my 53 years in markets!
- People power taking out Wall Street is an unexpected development with serious implications. It appears to be fuelled by helicopter drops of USD into the hands of a disillusioned public. Their quick grasp of what is required to dethrone the Masters of the Universe is remarkable.
- I can't wait to see what happens on Monday! zerohedge.com/markets/reddit…
- The Fed has a practical problem with raising interest rates. Entire financial system is based on financial assets as collateral. Collateral is compounded on collateral. Now Imagine the consequences of falling values on the entire financial system. That is the Fed’s true dilemma!