ISMS 11: US Banking Crisis and Fed Rate Cut

<p><strong>Did the Fed finally break something with its aggressive rate rises?</strong> I’ve been repeating in my investment strategy that the Fed will eventually break something, and yes, they did. They did.</p><ul><li>Was the collapse of the Silicon Valley Bank the beginning of the 2023 US banking crisis?</li><li>Has quantitative tightening ended?</li><li>Are we in quantitative easing?</li><li>Could this spread throughout the US?</li><li>Or the global banking system?</li><li>Was this caused by the government or the bad behavior of banks?</li><li>Is the dollar going up or down due to what’s happening?</li><li>Could this trigger a much-anticipated recession in America?</li><li>And how does this impact Feds tightening and inflation the Fed is meeting this week?</li><li>Did the Fed finally break something with its aggressive rate rises?</li></ul><br/><h2>Was the collapse of the Silicon Valley Bank the beginning of the 2023 US banking crisis?</h2><p>First, we start with the situation of Silicon Valley Bank, which is going bust. In Silicon Valley Bank’s case, first of all, there was a huge influx of deposits into Silicon Valley Bank over the last couple of years, as well as the whole banking sector in the US.</p><p>Where did these deposits come from? In the US, those deposits came from the US government pumping money into the hands of individuals and companies through the various and massive stimulus programs during the covid shutdown. Those stimulus packages passed by Congress went into the banks as deposits from individuals and companies.</p><p>Consider the fact that most countries around the world couldn’t do this. Thailand where I am right now, there’s no way the government could print all that money because the currency would have collapsed. And therefore, most governments did not have the privilege of having a reserve currency asset and the ability to print as much money as needed. So America is quite unique in this, and that’s one of the reasons why what’s happening in the US is may not spread to such an exten