Bank Index Signals Bank Failures
In 2007 and 2008, the big alarm signals were the Fannie Mae stock 90% decline, and the Lehman Brothers CDSwap rate rise by 5-fold. In today’s age, the signals are many, like the USTreasury TNX bond yield over 3.0% and rising, like the USGovt borrowing costs exceeding the total tax income (!!!), like the launch of the Petro-Yuan contract in Shanghai (the dagger in the Petro-Dollar heart), like the insanely broad major central bank financial market support (extended to stocks, corporate bonds, and crude oil), like the Emerging Market debt bust, with over $9 trillion on the line. But the focus here is on the Big US Bank Stock Index (BKX) breakdown, confirmed by the comedown in the crude oil price. The entire Wall Street banks are highly vulnerable to the oil price due to shale sector exposure. It signals the death of one or two major US banks. It signals the acceleration of the Systemic Lehman Event. The historical event will feature a global financial crisis an order of magnitude larger in scope than in 2008. It will feature sovereign bond defaults and entire national banking system collapses. THE GLOBAL POSTER BOY SUBPRIME BOND IS THE USTREASURY BOND. The safe haven this time around will not be bonds, but rather Gold.