Home Finance The entire US banking system collapsed

The entire US banking system collapsed

by marusia

The United States found itself on the verge of a large-scale financial crisis: the country’s largest financial institutions went bankrupt.

To stay afloat, they are getting rid of assets, and ordinary residents are trying to get at least some money back, but have already lost billions in total. Wall Street has created a crack in which not only the States, but also the countries of Europe may find themselves.

Long queues of those who are trying to take their money line up at the bank offices. In this bank, online transfers are already blocked. Clients leave with nothing.

Over the past 24 hours, the entire US banking system has fallen into a steep dive. It all started with Silicon Valley Bank. Yesterday, he was one of the top 20 largest banks in America, financed startups.

The bank first announced a $21 billion emergency bond sale, and its stock plummeted 60 percent. Following him, the main players began to fall. US banks lost $620 billion on bonds alone. And another 50 billion frightened customers withdrew over the past day.

Aftermath and mass crisis

Following the banks, the largest US companies flew down: Uber, General Motors, Tesla. The cryptocurrency market crashed. What is happening in the states now reminds analysts of the financial bubble of 2008, which is about to burst. The government started printing money even during the pandemic. As a result, inflation shot up. To cope with it, we had to raise the key rate.

Another crisis factor: the US Department of Labor announced the largest number of applications for unemployment benefits. It is already clear that this financial collapse will not be local. The European economy was also under attack.
They spurred the crisis in the West and sanctions against Russia. Over the past year, Europe has tried to switch to American shale oil. But there are also problems with its production now – volumes are declining. In the meantime, according to analysts, everything is heading towards a repetition of the events of 2008. And they will not affect only those countries where they have learned to live in isolation from the West.

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