When reading the following article from The Times London and “hedge fund managers are adding to their “down bets” on the sector” are seen those “down bets” are credit default swaps. Gambling with money that doesn’t exist that a corporation, a business, a bank, or an institution will fail. And the hedge fund managers then reap obscene amounts of money.
Down bets translate to: “to make short bets or make trades in derivatives such as futures and swaps contracts that can be highly leveraged.”
Derivatives are credit default swaps. The term credit default swaps have the about the same connotation as the word leper, so the financial institutions, large investors, the banks, and the people dealing in markets and finance daily don’t like to use the term “credit default swaps,” but that’s what’s going on in greater volume and percentage now and over the past few years than the economic collapse of 2007, 2008, 2009, 2010 that has never really been overcome or corrected. Nothing has ever been done by any government or financial institution to stem the blind greed and constantly increasing gambling with the world economy that the money to gamble is not there. It would be like an individual going into a very high stakes game in a European casino and placing a bet for $1,000,000,000 when they only have $100,000 in liquid assets — but they gamble the billon hoping the house loses.
But when things go south?
Banks fail. Financial institutions fail. Bailouts occur. Economies stutter, wobble and fall.
Always with the delusion and lie “This will correct itself, there’s no reason to worry, this isn’t a recession, this isn’t an economic depression, this isn’t anything we can’t handle.”
Eventually, in never learning lessons along the way and ever increasing gambling and greed there is coming a day when no one will be able to bail out the worldwide economic mess greedy visionless men and women brought about.
Why are these articles here?
Because what happens within the world economy has a direct correlation to Bible prophecy being fulfilled.
Don’t believe that? Don’t see the connection or refuse to believe there is one?
Well, wait and watch. Because there is coming a day. A day of reckoning. A day of judgment. And then the Day of the Lord. And the economies of nations, of the world — now linked with globalism and trade agreements and the nations of the West no longer truly independent, no longer the producers, the makers, the providers they once were and the people living in Western nations will tragically come to see just what all the shenanigans, smoke and mirrors, games played, lies told over the past few decades brings about.
And the Word of God is in it. Not to be omitted or ignored.
Ken Pullen, A CROOKED PATH, Friday, March 17th, 2023
Consortium of Wall Street investment banks rescue First Republic
Investment banks in $30,000,000,000 plan to calm markets
Friday, March 17, 2023
By Patrick Hosking, Ben Martin, Helen Cahill
Reprinted from The Times [London]
A consortium of Wall Street’s biggest investment banks rescued First Republic Bank with $30 billion in deposits last night to calm financial markets after the recent failure of three U.S. banks and continuing fallout from Credit Suisse.
A statement from the group said that JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs and Morgan Stanley were involved with others in the rescue of the California-based bank.
The bailout was initiated by the banks but had government encouragement. Jamie Dimon, the boss of JP Morgan, met Janet Yellen, the U.S. Treasury secretary, yesterday to discuss First Republic, according to Bloomberg.
Founded in 1985, First Republic had $212 billion in assets and $176.4 billion in deposits at the end of last year, according to its annual report.
First Republic’s shares had a volatile day closing up $3.11, or 10 per cent, at $34.27 during normal trading hours but then losing 18 per cent, or $6.45, to $27.85 in late trading on Wall Street.
While attention in the U.S. was focused on First Republic, the problems affecting Credit Suisse dominated the headlines in Europe.
After the Swiss central bank stepped in to provide a £45 billion lifeline to the country’s second biggest bank, it emerged that the chairman of Credit Suisse was facing three class actions for allegedly misleading shareholders in the months leading up to the crisis.
Axel Lehmann was accused of making materially false and/or misleading statements when he told investors in December that the outflows plaguing the lender and contributing to the jitters over its financial strength had stopped.
Yesterday the Swiss authorities extended a lifeline of up to SwFr 50 billion (£45 billion) to the bank in an effort to restore the confidence of depositors, bondholders and shareholders. Neither Lehmann nor Credit Suisse has commented on the lawsuits.
Other banks have also come under pressure amid reports that hedge fund managers are adding to their “down bets” on the sector. Bridgewater Associates, Millennium Management and Marshall Wace are among those intensifying short positions in European banking shares, according to data from Breakout Point. Short-sellers had amassed bearish positions worth more than $15.7 billion against European banks by Tuesday, according to S&P Global Market Intelligence.
The failure last week of two American banks including its 16th biggest, Silicon Valley Bank, has fed concerns that other institutions could be forced to crystallise losses on bonds to pay defecting depositors.
While Credit Suisse has a different business model, scandals over several years and its admission this week of “material weaknesses” in its internal controls battered confidence in the institution.
While the rescue loans will give Credit Suisse some breathing space, analysts questioned whether it could survive as an independent entity.
JP Morgan said “the status quo is no longer an option” and suggested the larger UBS could bid for it.
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