BREAKING POINT? How today’s bank crisis is SCARILY similar to 2008



In 2007, 25 banks had to be bailed out — the single largest bank failure in history.

This was a total of $526 billion over the span of 12 months.

Glenn Beck believes we could now be looking at a repeat of what happened during the 2008 financial crisis.

“In the last five weeks, we have had three U.S. banks fail, and we’re already over the 2007 total by $6 billion.”

On top of this, the Federal Reserve is slated to raise interest rates for the tenth time in over 12 months.

“I know nothing about this stuff,” Beck says, “but I know enough to know you cannot continue to raise interest rates or you will break the back of the economy — but they’re doing it anyway.”

Glenn adds that this isn’t the only thing breaking the back of the economy.

“Our government is borrowing more money, which they then have to print. Far more than you and I are spending at T.J. Maxx, okay? Far more than all of Americans — we went out and we just were on a credit card binge — we wouldn’t make a dent into what the federal government is spending.”

“And yet, we’re going to be the ones paying the price,” Beck warns.

However, the Democrats in the House and the Senate want Congress to raise the debt limit without cutting spending.

“Screw you,” Beck says, “where is my representation?”

“The only thing that can be done with an out-of-control government,” he explains, “is to cut the budgets and bring it back under control. That’s the job of Congress, but they gave that away in 2008.”


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Former Dallas Fed head warns the US regional banking crisis is 'more serious than we currently understand'



There have been three major bank failures so far this year, and some experts claim the carnage may not yet be at an end.

Former Federal Reserve Bank of Dallas President Robert Kaplan told Bloomberg Television this week that he thinks "the banking situation may well be more serious than we currently understand."

Silicon Valley Bank collapsed in March, marking the second-largest bank failure in U.S. history. Signature Bank, which had $110 billion in assets at the end of 2022, making it the 29th largest U.S. bank at the time, failed shortly thereafter.

Americans have pulled nearly $100 billion out of banks since, according to Fox Business.

Biden Treasury Secretary Janet Yellen claimed in mid-March that the "banking system is sound." However, just weeks later, First Republic Bank, which had assets over $200 billion and catered to wealthy elites, similarly failed.

First Republic's demise represented the second-largest banking failure in American history, trailing the 2008 collapse of Washington Mutual.

Over the weekend, regulators seized First Republic and sold the bank's deposits and a "substantial majority of assets" to JPMorgan Chase, the largest U.S. bank. JPMorgan similarly absorbed Washington Mutual after its collapse.

Echoing Yellen's March claim, JPMorgan Chase CEO Jamie Dimon suggested Monday that the primary phase of the regional bank crisis was "over," reported the Guardian.

"There may be another smaller one, but this pretty much resolves them all," Dimon said. "This part of the crisis is over."

Tomasz Piskorski, a professor of real estate in the finance division at Columbia University, told Bloomberg, "There are a lot of signs telling us the U.S. banking system is in distress. ... We might want to close our eyes and pretend nothing’s happened, but the signs are already there."

CNBC reported that bank stocks fell dramatically Tuesday, in part because confidence remains shaken and pressure on the sector continues to build.

For instance, shares of the California-based PacWest Bancorp fell nearly 28% on Tuesday. The stock was halted for volatility on a number of occasions.

Shares of Western Alliance bank dropped 15%.

The SPDR S&P Regional Banking ETF fell 6.3%.

\u201cBREAKING: US Banking Crisis - Bank Shares Plummet \n\nShares of major U.S. regional banks fell further on Tuesday in the aftermath of the collapse of First Republic Bank, the largest U.S. bank failure since the 2008 financial crisis.\n\nShares of PacWest Bancorp tumbled nearly 30%,\u2026\u201d
— Mario Nawfal (@Mario Nawfal) 1683043099

According to Time, investors and analysts remain concerned about banks such as Comerica and KeyCorp, which — like SVB and Signature Bank — have a large number of accounts with deposits over the federally insured level of $250,000.

CNBC indicated that this concern can be attributed to the recent failures, the expected regulatory changes they have prompted, and prospective Fed rate hikes.

Former Dallas Fed president Robert Kaplan suggested that as far as the regional banking crisis goes, it would be ill advised for the Federal Reserve to continue its rate hike campaign.

The Fed is expected to raised its benchmark rate by 0.25 percentage points on May 3.

"I’d prefer to do what’s called the hawkish pause, not raise but signal that we are in a tightening stance," Kaplan told Bloomberg. "It is more important to be able to sustain the current rate for an extended period of time, longer than the market thinks, than to get another 25-50 basis points and risk having to cut again. I think that will be very troubling."

Economist Peter St Onge of the Heritage Foundation noted Monday that thousands of banks are "in trouble because of the fastest rate hikes in 50 years [which] crashed their bonds, impaired their loans, and vaporized the easy profits they were making paying depositors pennies."

Onge further claimed that virtually every bank in America loaded up on expensive bonds "to park the influx of pandemic-era deposits" then lost "hundreds of billions as rates went up. American banks are now sitting on at least $620 billion of unrealized hidden losses. So First Republic was about 5% of that and we've got 95% to go."

\u201cFirst Republic bailed out for $63 billion\u201d
— Peter St Onge, Ph.D. (@Peter St Onge, Ph.D.) 1682944624

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War and civil unrest: What could happen if the BANKS COLLAPSE



Before the financial crisis in 2008, Glenn Beck knew this could cause a depression. What he didn’t foresee was that the federal government would violate the free market system and make the problem bigger. Now what’s happening?

Officials are bailing banks out and making the bigger banks even bigger. Beck warns that we’re “going to end up with four banks and then we’ll end up with the Fed.”

Just last week, banks borrowed a combined $164.8 billion from two Federal Reserve backstop facilities The prior all-time high was in 2008.

Beck continues, “I am growing more cautious by seeing what’s happening behind the scenes.”

He says that “everything is interconnected. The contagion, meaning one bank falls then it's dominoes. It goes across the water and it will collapse everything.”

His message gets more ominous: “If the small banks collapse, 60% of all our loans and our businesses collapse … we are not looking at a depression situation, we are looking at a complete collapse of the West if this happens.”

If the West collapses, there will be a currency reset. It could very likely be a central bank digital currency, and this is terrifying.

He says what’s going to happen is the “government will step in and say this is too big for anybody else to handle, we’ll handle it with the Fed. We’re resetting the currency, it’s going to be a digital dollar.”

The government will essentially destroy the worth of your physical dollar, leaving you no choice but to conform to the new currency.

If this goes through, you will bank with the government.

Beck offers a piece of advice: “What I would tell my own family, we have to go shopping tonight … do not hoard, but grab some extra things and have them … take care of your family, do the right things, do not panic.”

“Panic makes this whole thing happen. So, do not panic.”


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Following recent bank failures, Treasury Sec. Janet Yellen assures 'our banking system is sound'



In the wake of recent bank failures, Treasury Secretary Janet Yellen claimed during remarks on Thursday that the "banking system is sound."

"I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them," Yellen said while speaking before the Senate Finance Committee. "This week's actions demonstrate our resolute commitment to ensure that our financial system remains strong and that depositors' savings remain safe."

Silicon Valley Bank and Signature Bank both recently collapsed, sparking fears of possible contagion that could wreak havoc throughout the financial system — depositors at the banks are being bailed out and will not lose the funds they held at the institutions.

Republican Rep. Blaine Luetkemeyer of Missouri has suggested that the government should temporarily insure all bank deposits, according to Politico.

"If you don’t do this, there's going to be a run on your smaller banks," Luetkemeyer said, according to the outlet. "Everyone's going to take their money out and run to the JPMorgan’s and these too-big-to-fail banks, and they're going to get bigger and everybody else is going to get smaller and weaker, and it's going really be bad for our system."

Yellen also said on Thursday that she does not think deficit spending is one of the main reasons for inflation.

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Prior to Jerome Powell's tenure as Fed chair, Yellen served as chair of the board of governors of the Federal Reserve System for a four-year period that concluded in early February 2018. She was the first woman to serve as Fed chair, and she is also the first woman to serve as Treasury secretary.

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Government’s Reckless Monetary And Fiscal Policies Led To Silicon Valley Bank’s Failure

SVB invested too much of its capital in U.S. government-backed bonds and then became a victim of the government’s irresponsible policies.