Home » Posts tagged 'banking collapse'
Tag Archives: banking collapse
The Music Just Stopped: Japan Banking Giant Norinchukin To Liquidate $63 Billion In Treasuries & European Bonds To Plug Massive Unrealized Losses
The Music Just Stopped: Japan Banking Giant Norinchukin To Liquidate $63 Billion In Treasuries & European Bonds To Plug Massive Unrealized Losses
Last October, when the wounds from the March 2023 bank failures – which surpassed the global financial crisis in total assets and which sparked the latest Fed intervention, setting the market’s nadir over the past 16 months – were still fresh, we made a non-consensus prediction: we said that since the Fed has once again backstopped the US financial system, “the next bank failure will be in Japan.”
This prediction only got warmer two months later when, inexplicably, Japan’s Norinchukin bank, best known as Japan’s CLO whale, was quietly added to the list of counterparties for the Fed’s Standing Repo Facility, a/k/a the Fed’s foreign bank bailout slush fund.
But if that was the first, and still distant, sign that something was very wrong at one of Japan’s biggest banks (Norinchukin is Japan’s 5th largest bank with $840 billion in assets) today the proverbial canary stepped on a neutron bomb inside the Japanese coalmine, because according to Nikkei, Norinchukin Bank “will sell more than 10 trillion yen ($63 billion) of its holdings of U.S. and European government bonds during the year ending March 2025 as it aims to stem its losses from bets on low-yield foreign bonds, a main cause of its deteriorating balance sheet, and lower the risks associated with holding foreign government bonds.”
See, what’s happened in Japan is not that different from what is happening in the US, where as the FDIC keeps reminding us quarter after quarter, US banks are still sitting on over half a trillion dollars in unrealized losses, as a result of the huge jump in interest rates which has blown up the banks’ long-duration fixed income holdings, sending them trading far below par and forcing banks (and the Fed, see BTFP) to come up with creative ways of shoving these massive losses under the rug.
…click on the above link to read the rest of the article…
What to Do to Prepare for Financial Collapse: “Get Out of Debt. Store. Prep. Cash. Gold.”
What to Do to Prepare for Financial Collapse: “Get Out of Debt. Store. Prep. Cash. Gold.”
Prepare by balancing debt. Before you max out your credit cards on top notch gear, make sure you can survive the economic conditions that are coming.
Mass unemployment. Loss of income. Heavy dependence on assistance. And the biggest strain on the system we can imagine.
The United States is once again brought to the brink of collapse. Regardless of how dismissive mainstream voices are on the issue, it is clear that Americas is only a few shades and another crisis away from an all out return to the Great Depression era.
In 1929, it was a banking collapse that spread the panic, but it was the fallout in the heartland where its effects were felt. The means of survival become very difficult for the working class.
The comforts disappear, and even items like toilet paper are hard to come by. People line up in droves for handouts, because they are too desperate to do without. The proud become embittered as they wither to the bone, and people in the 1930s depression-era were hedged much better in mostly rural settings, with the ability to grow their own food.
Today, populations rely almost entirely upon deliveries, stocks and stores. All that could be gone in a matter of hours. If trucking were to halt, shelves would be empty and people would be rioting within three days, especially if EBT and other payments stopped or were cut off.
Beyond the flashpoints and headlines, investment dries up, small businesses cease. Goods stop flowing, inflation makes everything unaffordable anyway. Between a jobs shortage and a dysfunctional economy, it means hard times, whether then or now.
So what should you do? How should you handle this harsh reality?
Bill White at Survivopedia.com gives this detailed advice:
…click on the above link to read the rest of the article…
