Best call ever. This dude called the market top. Wow…
In retrospect, this was the best call I have ever seen on EJMR.
Jan 5, 2022 to be precise
Market crash is imminent
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To me, the origin of the banking crisis (which is not confined to SVB, look at Credit Suisse..) is quite obvious. Governments inundated the market with Covid relief money by issuing a lot of debt at very low interest rates. Low rates were the result of a combination of central banking purchasing programs (which were never ended since the 2008 crisis, particularly in Europe) and low inflation, which had been historically flat in the EU and US and became also artificially low during the lockdowns. Almost nobody was sure about what would have happened after Covid, and there weren't many business opportunities around, so investing in government bonds was almost the only option back at the time.
Then this Covid relief money, coupled with supply-side shortages and the inertia of central bankers, ignited the inflation crisis. Inflation started very suddenly and was very strong at the same time. As a consequence, low-return government bonds suddenly became unattractive to investors (why should I invest in a bond with an interest of 2% per year when inflation is 10%?). At the same time, investors were full of such bonds. Hence you have a banking crisis unfolding.
Blanchard used to say that Covid was a good time to get more indebted for governments. Nations were able to borrow at historically low rates and the economy was in need of support. The problem is that if governments massively rip off their debt holders, you are walking toward a disaster since these are the same people that also pay your taxes...