The Worst Economic Collapse Is Coming (How To Prepare)
Published: 2022-10-05
Status:
Available
|
Analyzed
Published: 2022-10-05
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The CEO of Credit Suisse indicated the bank was at a critical juncture, attempting to reassure staff about its financial stability despite stock price declines.
"all of this began just a few days ago when the CEO of credit Swiss made a statement that the bank was at a critical moment and tried to reassure employees not to confuse the day-to-day stock price with the firm's strong capital-based liquidity position"
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Credit Suisse's recent stress test results showed its Tier 2 capital was below required levels, suggesting a potential inability to successfully restructure.
"their latest results were less than optimal Yahoo noted that their tier 2 capital is lagging behind regular requirements"
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Attempts by Credit Suisse employees to reassure customers about the bank's stability had the opposite of the intended effect, potentially increasing panic.
"credit Swiss employees began reassuring their customers that everything was okay and as you would expect that had the opposite effect"
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Critics expressed concern that Credit Suisse's declining financials and returns could significantly impact the broader market.
"critics warned about their path moving forward declining financials and dwindling returns that could have a significant impact in the entire market"
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There is concern that Credit Suisse may be unable to meet its credit default swap obligations, indicating a potential inability to repay its debts.
"it was found that they might not be able to meet their credit default swamp obligations which as I explained before means they might not be able to pay off their debts"
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The head of global banking at Credit Suisse is reportedly leaving after a short tenure in that role, despite a long history with the company.
"their co-ed of global banking is suddenly leaving after only nine months of being promoted in over 27 years of working within the the company"
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Credit Suisse has incurred a $6.5 billion debt from recent unsuccessful trades, which will impact the company indefinitely.
"they've also continued to be in the losing end to bad trades with their most recent deal resulting in a six and a half billion dollar debt that they'll be stuck with indefinitely"
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Credit Suisse is considering cutting 5,000 employees as part of scaling back its operations.
"they've been scaling back in their entire operations by potentially cutting 5 000 employees"
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Credit Suisse is in a critical situation requiring swift and significant action for its survival.
"they're at the point of needing to make a pivotal move and fast if they want to survive"
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Deutsche Bank is facing declining share prices due to poor investment and buyout decisions, raising concerns about its future viability.
"Deutsche Bank is in a similar position as well their share price has been steadily declining after a series of poorly timed Investments and buyouts and now concerns are growing again about their future and whether or not they can make it through"
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The failure of either Credit Suisse or Deutsche Bank is predicted to have a devastating impact on the broader economy.
"should either one of these Banks fail there would be a rather devastating effect throughout pretty much everything"
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Comparisons are being drawn between the current situation of Credit Suisse and Deutsche Bank and the events leading up to Lehman Brothers' collapse, including the announcement of survival strategies.
"people are starting to draw some eerily similar comparisons between 2008 and today including the fact that Lehman Brothers also announced a new survival strategy just a week before its collapse"
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The current spike in credit default swaps for Credit Suisse and Deutsche Bank, which are significantly larger than those before Lehman Brothers' collapse, suggests a potential catastrophic effect on the global economy if either bank fails.
"credit default swaps also spiked in the moments leading up to their bankruptcy and they were only one-fourth the size that credit Swiss and Deutsche Bank managed today meaning if either one of those Banks were to collapse it would have a catastrophic effect throughout the global economy"
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Investor concern is reflected in the unprecedented spike in credit default swaps.
"investors are concerned and credit default swaps have skyrocketed to the highest level ever"
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Some analysts believe a collapse similar to Lehman Brothers is improbable and that online speculation is excessive.
"some analysts believe that a Lehman style moment is unlikely and that internet speculation has gotten out of hand"
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JPMorgan Chase has stated that Credit Suisse's capital is healthy.
"JP Morgan went on record to say that the bank's Capital was healthy"
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Some analysts acknowledge Credit Suisse and Deutsche Bank are in a difficult situation but unlikely to fail, with Citibank asserting the current conditions are not comparable to 2008.
"other analysts say that they're in a tight spot but unlikely to fail and Citibank says this isn't 2008."
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Signs of trouble at Credit Suisse include the loss of private bankers in Hong Kong, increasing turnover, and a former trader's comment suggesting rumors persist until officially denied.
"they're beginning to lose private Bankers in Hong Kong turnovers increasing and even a former Credit Swiss Trader himself tweeted that all rumors are false until officially denied"
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There is a risk to major global banks, but they may receive government support to prevent a global catastrophe if their failure is imminent.
"there is a risk that the world's largest banks could be in trouble but let's also be realistic they've grown to the point where they can also be supported by Government funding in the event that their downfall will lead to a global catastrophe"
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Credit Suisse and Deutsche Bank possess $100 billion in buffer capital and could potentially receive further financial assistance if needed.
"they currently have a hundred billion dollars worth of buffer capital and even though they could only go so far there's nothing to say they can't receive additional money should they need it"
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There is a possibility that Credit Suisse and Deutsche Bank could default, leading to the collapse of the global economy.
"yes there is a chance at the bank defaulting the global economy falling apart and all of us looking to credit Swiss and Deutsche Bank as the culprit"
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It is uncertain whether governments would permit the failure of Credit Suisse and Deutsche Bank, given their systemic importance.
"it's undetermined if the government would even allow that to happen in the first place"
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