15 Mar “Rapidly deteriorating operating environment”
“Moody’s cuts outlook on U.S. banking system to negative, citing ‘rapidly deteriorating operating environment’” –https://www.cnbc.com/2023/03/14/moodys-cuts-outlook-on-us-banking-system-to-negative-citing-rapidly-deteriorating-operating-environment.html
As I say many, many times: if you wait to be officially told something, you’re waiting too late IMO.
By the time the MSM releases a story about rapidly deteriorating conditions, it’s a fair assumption that things are even worse than that. If you wait for bank runs, grocery store runs, and panic in the streets, God help you.
“In a harsh blow to an already-reeling sector, Moody’s Investors Service cut its view on the entire banking system to negative from stable.
The firm, part of the big three rating services, said Monday it was making the move in light of key bank failures that prompted regulators to step in Sunday with a dramatic rescue plan for depositors and other institutions impacted by the crisis.
‘We have changed to negative from stable our outlook on the US banking system to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the failures of SVB and SNY,’ Moody’s said in a report.” -CNBC, Ibid. emphasis mine
Yesterday the local news had some talking head “expert” on the show to discuss the bank failures and it was exactly what you’d expect: nothing to see here, no big deal, it’s those banks but it would not happen in the Midwest, you’re FDIC insured, everything is fine. As I rolled my eyes I thought, “It scares me to imagine how many people will hear this idiot and believe him.” I’m not saying that guy was a paid shill, but I’m kinda not not saying it either.
On Thursday, I’ll be publishing a podcast episode titled, “‘Things happen slowly until they happen very fast'” because that’s the nature of the beast. If you know how to read the signs, you see the early warning signals. If not, you’re essentially waiting for the snowball to roll down the hill and become an avalanche. Because let’s be real – the mass media is not going to foment panic unless that’s what they’re told to do. If they’re told to keep everyone calm and pacified, so be it.
“Just got off of a zoom meeting with Fed, Treasury, FDIC, House, and Senate. A Democrat Senator essentially asked whether there was a program in place to censor information on social media that could lead to a run on the banks.” –https://twitter.com/RepThomasMassie/status/1635074378454147074
Panic when you’re supposed to panic and be calm when you’re supposed to be calm. Toe the line and follow instructions.
Meanwhile, I would offer you the same type of downgrade/warning about the job market as well. Even though you’re still being told that the unemployment rate is only 3.6% and there are 1.9 open jobs for every 1 unemployed person, NO. NOOOOOOOOO. Believe that mess at your own risk!
Each day brings a new raft of layoff announcements yet somehow, you’re supposed to think the labor market is red hot and we just couldn’t possibly be in a bad economic situation with a job market this blazing! Give. Me. A. Break.
At this point *gestures broadly* I think the rapidly deteriorating operating environment is all around us.