Outrageous rental increases and the naked greed of professional landlords will result in a dearth of young workers priced out of London. It will destroy the City’s economy and negatively impact the UK even more conclusively than the Luftwaffe, political mistakes, global banking crisis, pandemic or recession.
The Fed tries to be dovish to calm market fears, but banking fears and inflationary threats on the economy may lead us somewhere new: A Stagflationary Bust!
Just how vulnerable are banks to further contagion and crisis? With inflation still running loose, central banks still set to hike, while consumer and corporate pressures mount, the banking crisis may only just have started.
The “rescue” of Credit Suisse, thereby averting a European banking crisis, is getting less comment than the nixing of its $17.5 bln of CoCo Bonds. I’ve been warning about CoCos since 2011. Finally I got something right!
Central Banks face a mighty challenge persuading markets and depositors the banking system is stable. The war between chaos and order in markets has turned hot. At stake is the stability and future of the global economy. Anyone for the last few choc ice?
Credit Suisse is in the headlines for all the wrong reasons. Confidence in the bank is zero. The Swiss National Bank has provided a backstop, but a sale looks likely of the bank that just can’t get it right.
SVB is done and dusted, and its time to ask questions, like: what is the future for banks? What do they do, and how do they do it? Are they at an evolutionary dead end? Probably. And the sheer joy that is the UK budget… stronger coffee please.
SVB is a crisis averted, but the market wasn’t paying close attention which spells opportunity. There are bigger risks from central banks being distracted from fighting inflation and normalising rates. That’s the real crisis!