My predictions are usually wrong, but I think that the present US bank collapse situation is merely local, and that mopping up operations will supply the appropriate band aids to stop the haemorrhage. Still, some think that this is really the beginning of the end, and if it is, I would not like to think, while rumbling through the rubble, that I did not cover it. Mike Adams, for example thinks that the world financial system is in serious trouble, as shown by the winding up of the cryptocurrency player, Silvergate Bank, which now has a liquidisation plan. The bank suffered from the impact of a large number of cryptocurrencies going bankrupt, as well as the collapse of FTX, whom Silvergate had on-going dealings with. Thus, people moved to take out deposits, and the deposit base dropped from $ 14.3 billion, to $ 3.8 billion. Thus begun the slide to oblivion.
Senate Banking Committee Chair Sherrod Brown said “Today we are seeing what can happen when a bank is over-reliant on a risky, volatile sector like cryptocurrencies.” But, Silvergate is only one player among many servicing the volatile cryptocurrency industry, and who knows when the next big crash occurs here.