Immortalism.com (Analysis) March 16, 2023–The world is most likely witnessing the Crash of 2023. And this is going to be a big one.
Triggered by the collapse of Silicon Valley Bank, the second largest U.S. bank failure, the New York stock market turbulence is spreading its destructive contagion to Europe and Asia. It will result in at least a serious recession in the U.S., in Europe, and in Asia.
As in 2008, in which the subprime mortgage was the culprit, the economic virus is once again hatched in the U.S. And it is spreading its fear and loathing to the European Union, to Asia, and to most of the rest of the world.
The real question: will it be a Recession or a Depression?
Is it 2008 Again?
One thing is certain: the failure or near-failure of important banks like Silicon Valley Bank (the lender to Silicon Valley) and Credit Suisse (Switzerland’s most important bank) may be a shock but they’re definitely not a surprise.
In 2008 to 2010, the world saw the collapse of more than 300 U.S. banks, starting with Washington Mutual Bank, and including major banks like Wells Fargo. We also witnessed the meltdown of Lehman Brothers and Bear Stearns, major investment banks on Wall Street.
Or Is It 1929 Again?
If we rewind and reread the history of the stock market crash of 1929, we are reminded that around 9,000 U.S. banks failed.
The Biden regime in Washington quickly bailed out Silicon Valley Bank and all its depositors. And then it also bailed out Signature Bank. But how many banks can the FDIC (Federal Deposit Insurance Corportation) bail out?
What If Stocks Rise Tomorrow?
If after reading our forecast here, you read or hear tomorrow that the stock market is up for the day, that the stock market is “recovering,” don’t be surprised. If stock analysts, brokers, and economists all sing in unison that the worst is behind us, that things are now in control and on the rise again, and there’ll be no recession in the U.S. or elsewhere this year, don’t be too easily swayed.
Why? Because this is Wall Street and Washington’s modus operandi right before and right after a stock market crash. Or right before or soon after the beginning of a Recession or Depression. And the financial media is very compliant and usually follows Wall Street and Washington’s rosy spin.
We stick to our forecast here. A day, a week, or even a month does not make a trend. And as we look at the economic fundamentals, we smell something rotten in the house of American Capitalism.
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