Banks Are Still In Crisis

An impasse on inflation v. banks and de-dollarization globally means the Fed, Treasury and Wall Street are “out of bullets” in the effort to avert a financial crisis. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ May 8, 2023  | [View Online]( | [Sign Up]( Dear , “Lines at food banks are getting longer,” warns commentary from Bloomberg. The story they’re referring to begins with a line outside an American Red Cross food pantry line “stretching two football fields” around several city blocks. The article then takes a trip across the country looking at similar despair in various locations as food costs have outpaced inflation by 50% in many urban areas. Even with “disinflation” or a slowing in the year-ver-year rise in price, inflation is still a problem. And even with the debt default narrowly averted, the banks remain under duress. While we mostly focus on financial markets and macro-economic themes, it’s worth taking a breath and recognizing there’s a human cost to financial crises. “Banks nearing crisis-era threshold raises a new warning sign,” reads another Bloomberg headline. The banking sector did very well during the pandemic, after the March 2020 “everything crash”. Now the S&P 550 Financials chart reveals the sector is headed toward pre-2008 level crisis levels. It took a decade for financials to return to pre-crisis highs. The danger today is if the banking crisis persists, we could see another route like 2008. And… you can’t have a bull market without strength in the banking sector. If a couple of undercapitalized banks can drag down the whole banking sector, the banking sector can and will drag down the S&P – which is, precisely, how a “bank contagion” works its way into the broader market. [This week in The Wiggin Sessions]( we spoke with Phillip Patrick from the Birch Gold Group. During the Session, we discussed: - The root causes of The Bank Crisis of 2023 and why it's still in its early innings  - The Fed Rate Hikes and sticky inflation, whether we can expect a pause during the next meeting to rescue Wall Street and regional banks… - The impending prospect of recession and why Phillip believes the inverted yield curves proves we’re already in one… And why an impasse on inflation v. banks and de-dollarization globally means the Fed, Treasury and Wall Street are “out of bullets” in the effort to avert a financial crisis. [Watch the Session Now ▶]( Ready? Let’s jam… Addison Wiggin, The Wiggin Sessions P.S. Spoiler alert: The only recourse will be to do what they always do “print” more money. Which, in turn, means your dollars will become worth even less. Again. P.S. Henry was at a Barnes & Noble in Union Square, NYC. Apparently copies of [Demise]( are still on shelves. POWERED BY DEMISE OF THE DOLLAR The Daily Missive from The Wiggin Sessions is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to The Wiggin Sessions delivering daily email issues and advertisements. To end your The Daily Missive from The Wiggin Sessions e-mail subscription and associated external offers sent from The Daily Missive from The Wiggin Sessions, feel free to [click here.]( Please read our [Privacy Statement.]( For any further comments or concerns please email us at feedback@wigginsessions.com. If you are having trouble receiving your The Wiggin Sessions subscription, you can ensure its arrival in your mailbox by [whitelisting The Wiggin Sessions.]( © 2023 The awiggin Sessions 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Sent to: {EMAIL} [Unsubscribe]( Consillience, LLC, Saint Paul Street, 808, Baltimore, Maryland 21202, United States