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Economist Warns of “2008-Style Financial Crisis”


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The Silicon Valley Bank collapse has rocked the financial industry to the core.

Economic Collapse: Depositors Conduct RUN On Silicon Valley Bank—2008 All Over Again?

According to Watcher Guru, this closure makes SVB the 2nd largest banking failure in U.S. history.

The SVB sudden collapse has many financial experts worried that a 2008-style crisis is on the horizon.

That's the scenario Marco Mavens CEO Stephanie Pomboy fears.

"What we are facing right now is really serious and we are on the brink of a 2008-style financial crisis and I’m not trying to be hyperbolic," Pomboy told Tucker Carlson.

"In fact, you and I discussed this at length in our long-form interview several months ago. At the time, the Fed hadn’t even raised rates nearly as high as they have today and as I was saying look you don’t raise rates at record fashion on an economy toting record leverage at maximum speculation and expect no consequence," Pomboy explained.

"I mean this was clearly going to happen and now we are seeing the weak links in the chain break. You know the areas where speculation was most rampant and most egregious are clearly coming down and they are doing so as they seem to do in all the three-letter acronyms, just like they did in 2008," she continued.

Pomboy lambasted the Federal Reserve for its insatiable money printing and irresponsible fiscal policies that led to dire consequences.

"We’re back in the three-letter acronyms and there will be a lot more of those and frankly, I think this is the unintended consequence of the fed’s monetary policy layered with a really bad fiscal policy on top of it but essentially they've been encouraging people to take reckless risk for years just because you had no alternative," Pomboy explained.

"You could get 0% sitting in a t-bill or having your money in a bank or you could run out and you could speculate and that's what they have done and that is all coming back to bite them hard and we got some major consequences coming at us and I think it is going to devolve very rapidly because of all the leverage that’s been built up here," she added.

Watch the clip from Tucker Carlson's broadcast:

As WeLoveTrump noted Friday, SVB wasn't the only bank experiencing a meltdown.

Reports circulated that Wells Fargo customers were missing direct deposits and scheduled paychecks from their accounts.

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The recent developments have many people fearing a black Monday is approaching.

 



 

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